Enhancing Digital Financial Literacy through Responsible PayLater among Generation Z: A Community Service Program at Universitas PGRI Semarang

Abstract

The rapid growth of digital financial services has reshaped the financial behavior of Generation Z, particularly through the increasing use of Buy Now Pay Later, commonly known as PayLater. Although PayLater offers transactional convenience, payment flexibility, and wider access to digital credit, irresponsible use may encourage impulsive buying, late-payment penalties, debt accumulation, and risky credit behavior. This community service program aimed to enhance digital financial literacy among Generation Z students at Universitas PGRI Semarang through education on the benefits, risks, and responsible use of PayLater. The program applied the Input, Process, Output, Outcome (IPOO) model. The input comprised participants, digital financial literacy materials, and PayLater case illustrations. The process combined material presentation and facilitated group discussion. The output was assessed qualitatively through the understanding that participants articulated during the discussion, and the intended outcome was greater awareness of responsible PayLater use. Observation of the session indicated that the education helped participants reframe PayLater as a form of digital credit rather than a mere payment convenience, and encouraged them to weigh repayment capacity, distinguish needs from wants, and recognize financial risks before using the service. The program demonstrates the relevance of an IPOO-based, discussion-led approach to digital financial literacy, while underscoring the need for structured pre-test and post-test evaluation in future activities.