Adoption of digital payment FinTech service by Gen Y and Gen Z users: evidence from India

Abstract

Purpose This study aims to evaluate the users’ behavioral intention toward the acceptance and adoption of digital payment FinTech services in India. The study also compares the differences in Gen Y and Gen Z’s intention to adopt digital payment FinTech services. Design/methodology/approach The present study adopted both the unified theory of acceptance and use of technology (UTAUT) and the technology acceptance model (TAM) as its theoretical base and also added financial literacy and customer satisfaction. The data was analyzed by applying structural equation modeling using SmartPLS 4. Findings The outcomes of the study imply that customer satisfaction, effort expectancy and performance expectancy had a significant effect on behavioral intention. Moreover, effort expectancy, performance expectancy and perceived enjoyment had a significant influence on customer satisfaction, and effort expectancy and performance expectancy is significantly influenced by perceived enjoyment, while self-efficacy significantly influenced perceived enjoyment. Also, financial literacy does not moderate the relationship between effort expectancy, performance expectancy, facilitating condition and behavioral intention. Furthermore, the association of effort expectancy → customer satisfaction; perceived enjoyment → customer satisfaction; and perceived enjoyment → effort expectancy is moderated by age factor. Originality/value This study contributes by developing a more cohesive and unified model for assessing users’ behavioral intention toward acceptance and adoption of FinTech services by adopting constructs from the UTUAT and TAM and incorporating financial literacy and customer satisfaction to expand and enhance the theoretical prospect of the existing literature.

Bridging the Generation Gap

“…Furthermore, users of banking apps from the Baby Boomer generation express apprehension about using other applications, a sentiment echoed by non-users of banking apps. The feelings of fear, apprehension, and distrust are frequently cited among the respondents of non-users of banking apps (e.g., Srivastava et al, 2024). Among non-users, fear carries more weight in their decision not to use apps than factors such as age, pleasure or enjoyment, cost-benefit, mastering current technologies, or effort in usage.…”

“…Among non-users, fear carries more weight in their decision not to use apps than factors such as age, pleasure or enjoyment, cost-benefit, mastering current technologies, or effort in usage. We believed that this fear of not using banking apps is associated with the potential theft of digital data and/or virtual scams frequently reported in the news (e.g., Srivastava et al, 2024). Conversely, users and non-users from Generation Z enjoy and use various other applications, such as those for food delivery, transportation, music, or movies.…”

“…Considering the Generation Z's willingness to try new technologies, Zmoginsk (2019) points out that 72% of young people in this generation are willing to install new apps or add new hardware to their daily lives. However, only a third of them have a bank account and think they can "manage" their financial life using only services like Google Wallet or Apple Pay (Lisana, 2024;Srivastava et al, 2024).…”