Perceived Trust and Its Antecedents’ Impact on Intentions to Use Fintech; Evidence from Pakistan

Abstract

The Study examines the impact of perceived trust and its antecedents on the intentions of individuals to use fintech services in Pakistan. By identifying the primary factors that influence these intentions, the research offers fintech service providers and policymakers valuable insights into the adoption and utilization of fintech in the Region. This information is indispensable for the successful marketing of these services. The research centers on four primary constructs: perceived risk, perceived usefulness, perceived convenience of use, and perceived trust. The Technology Acceptance Model (TAM) and the Unified Theory of Acceptance and Use of Technology (UTAUT) are employed as theoretical frameworks. Perceived risk refers to the potential negative consequences of fintech usage, perceived usefulness evaluates the enhancement of financial activities through fintech, perceived ease of use measures the simplicity of utilizing fintech services, and perceived trust evaluates the reliability and competence of the fintech provider. A convenience sampling method was employed to recruit 400 participants aged 18 and older who have either used or are willing to use fintech services from the major cities in Pakistan. According to data analysis conducted with PLS software, the intention to utilize fintech services is significantly influenced by perceived usefulness, perceived simplicity of use, and perceived trust. Hence, there is no significant impact on perceived risk. Cronbach’s alpha if less than. 6 or greater than. 8 is not considered good; while the acceptable limit for CR and AVE lies between. 7 and 9. This paper aims to explain the overall understanding of Pakistan’s fintech adoption and hereby stresses the significance of the perceived trust and perceived usefulness in the context of the given phenomenon.