Abstract
Buy Now Pay Later is a rapidly growing financial technology innovation that is part of todays entrepreneurial ecosystems. Even though Buy Now Pay Later makes it easier for people to make purchases and get short-term credit there are still worries about how it affects how people spend money in a way and their overall financial health. This review takes a look at research from peer-reviewed journals that cover financial technology innovation, behavioral finance, consumer psychology, sustainable consumption, digital credit and machine learning in analysis.Using a literature review method, 52 peer-reviewed articles published between 2000 and 2025 were studied. The results show that instalment-based credit systems greatly affect how much people spend because of the way they think about money, how they see their money situation, and their buying behaviour. While Buy Now Pay Later helps more people get access to credit and helps businesses grow, using it often is linked to more spending on things people don't really need and more financial problems. Sustainable results depend on how much people know about money the rules that are in place, and how responsible the financial technology is designed. The review says that entrepreneurial ecosystems need to use credit models that focus on social and governance factors and ensure the algorithms are clear so that Buy Now Pay Later developments fit with goals for sustainable development.