Peso vs. Dollar, Same Promo? BNPL, FX Transparency, and Gen Z Fairness
(A2026-131952)

AUTHORS

FRANCISCO GUZMAN MARTINEZ, TEC DE MONTERREY/ITE430714KI0

ABSTRACT

This research examines how foreign exchange fee transparency, comparing drip and all-in presentations, and promotion type, comparing Buy Now, Pay Later (BNPL) and cashback, shape Gen Z price fairness and purchase outcomes across two currency regimes, Mexico with MXN and dollarized Ecuador with USD. Evidence from a preregistered 2 × 2 × 2 cross-country survey experiment with N = 1,216 shows that all-in pricing increases perceived fairness, reduces budget stress, and raises willingness to pay and promotion uptake relative to drip pricing. The all-in advantage is stronger in MXN than in USD contexts. Promotion effectiveness depends on transparency. Under drip, cashback outperforms BNPL, whereas under all-in, BNPL converges. Perceived price fairness and budget stress mediate these effects, which are attenuated among individuals with higher price knowledge and financial literacy. A set of neuromarketing modules is planned to test the attention and affective pathways suggested by the survey. Preliminary evidence reported here reflects the survey only.