Payment Fintech application adoption in low–income groups: How financial literacy moderates influencing factors?

Abstract

Purpose This study aims to determine the factors that influence payment Fintech application adoption intention among low-income groups in India. Design/methodology/approach This study used an expanded technology acceptance model (TAM; covering perceived usefulness, perceived ease of use, social influence, perceived risk and financial literacy), which was tested using 310 low-income respondents in Northern India. The PLS-SEM approach was used to analyse the data. Findings The results indicate that perceived usefulness, perceived ease of use, social influence and financial literacy all has a direct positive relationship with the intention to use Fintech. Furthermore, financial literacy was found to be the moderator in moderating the relationship between social influence and intention to use the Fintech app. Research limitations/implications This study ameliorates existing research and deepens the authors’ understanding of users’ intentions to use Fintech among low-income groups. The findings of the study help both policymakers and academicians in designing effective strategies for promoting Fintech usage. Originality/value This study examines the factors that determine Fintech application adoption, particularly among low-income individuals. The TAM framework was expanded to include perceived risk and financial literacy as two of the factors influencing Fintech adoption. Furthermore, the moderating role of financial literacy on intention to use Fintech app was considered in this study in the context of a developing country such as India.