The Mediating Role of Investment Motivation in the Relationship between Risk Perception and Financial Literacy on Investment Decisions among Paylater Users

Abstract

This study examines the mediating role of investment motivation in the relationship between risk perception, financial literacy, and investment decisions among PayLater users in Indonesia. Using a quantitative explanatory approach, data were collected from 200 respondents aged 18–45 who had used PayLater services for more than six months. The data were analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS) to examine both direct and indirect relationships among the constructs. The findings indicate that risk perception and financial literacy have a positive and significant influence on investment motivation. Investment motivation, in turn, positively affects investment decisions and acts as a significant mediator in the relationship between risk perception, financial literacy, and investment decisions. Although financial literacy shows only a limited direct influence on investment decisions, its indirect effect through investment motivation is significant. These findings highlight the importance of strengthening financial literacy and investment motivation to enhance the quality of investment decision-making within the context of digital financial services, such as PayLater.