ABSTRACT : Paylater services, driven by e-commerce growth, are popular among Generation Y and Z, aligning with OJK’s financial inclusion goals. Despite a 2.88% material risk, non-material risks include difficulties in obtaining home loans and scholarships due to impulsive buying, potentially leading to compulsive buying disorders. A McKinsey survey shows poor mental health among Gen Y and Z in Indonesia, affecting their decision-making. Paylater GMV in Indonesia is expected to rise from $3,483.8 million in 2022 to $7,742.2 million by 2028. Psychological factors positively affect compulsive buying, while financial literacy negatively correlates with it. Paylater misuse positively influences compulsive buying, but debt risk awareness and financial literacy reduce it. OJK enhances financial literacy through cross-sector collaboration, education programs, and regulatory reforms. Recommendations include integrating psychological and social aspects into financial literacy programs and applying the Penta Helix model for sector collaboration. Strategies include educational events, mental health campaigns, social media, webinars, and national campaigns. Future research should explore the direct impact of psychological factors on Paylater misuse and integrating debt risk awareness into financial literacy campaigns, examining Penta Helix concept synergies for regulatory compliance and ethical standards.
KEYWORDS – Compulsive Buying Behavior, Financial Inclusion, Financial Literacy, Impulsive Buying Behavior, Paylater