Predicting FinTech innovation adoption in South Africa: the case of cryptocurrency

Abstract

Purpose Financial technology innovation within the developed world is driving financial markets, yet its adoption is lagging among consumers in emerging markets. At the same time, most African economies continue to be at the tail end of global financial innovations adoption. Given lagging consumer adoption of cryptocurrency in South Africa, the purpose of this paper is to apply the theory of planned behaviour (TPB) to predict behavioural intention to adopt cryptocurrency. Design/methodology/approach A survey instrument based on the TPB was used to collect quantitative data for predicting adoption from adult distance students at the Mancosa, Cape Town campus. For data analysis, the two-step structural equation modelling approach was used. Findings The findings indicate that attitude and perceived behavioural control positively impact the intention to adopt cryptocurrency. Subjective norm showed a negative non-significant influence. Overall, the results of the study show that the model has a good model fit and can be used to explain the theory. Research limitations/implications The results of this study may not be generalisable to the wider population as it is only based on a cross-sectional study of a sample of adult students at a single institute in South Africa. Originality/value The contribution of this paper is threefold: it is one of a few studies on the behavioural intention to adopt cryptocurrency in South Africa using the TPB model, it contributes towards the use of predictive behavioural economics models in understanding consumer behaviour critical to accelerating the adoption of financial innovations, and the results of the study also inform behaviour change strategies that can be applied by practitioners or policymakers to improve adoption. Studies of this nature may lead to the development of financial innovation in emerging markets through a nuanced understanding of consumer behaviour.

The Intention to Adopting Cryptocurrency of Jakarta Community

“…This shows that individuals can assess and evaluate the advantages of adopting cryptocurrency during the Covid 19 pandemic. These findings are supported by (Ayudya & Wibowo, 2018;Khatimah & Halim, 2016;Mazambani & Mutambara, 2019) which states that attitude toward has a significant positive effect on intention to adopt cryptocurrency. As stated by (Akhtar & Das, 2019) that attitude is a big concern when deciding something.…”

“…Perceived behavioral control refers to the perceived ease or difficulty in using cryptocurrency and is assumed to reflect past experiences as well as the obstacles and obstacles that are anticipated. Model adopted from (Ajzen, 1991;Ajzen & Icek Ajzen, 2006;Mazambani & Mutambara, 2019). The measurement scale uses a 5-point Likerttype scale, from 1 "strongly disagree" to 5 "strongly agree".…”

“…If the stronger the relationship between subjective attitudes and norms and behavior, the greater the perceived behavioral control, the stronger a person's intention to adopt cryptocurrency (Ajzen, 1991). Several research results related to the theory of planning behavior, such as (Mazambani & Mutambara, 2019) stated that attitude toward and subjective norm significantly influence the intention to adopt cryptocurrency in South Africa. (Ayudya & Wibowo, 2018), stated that attitude toward and perceived behavior control had a significant effect on intention to use emoney, while subjective norm had a significant effect on intention to use e-money in rural areas.…”

“…With the development of cryptocurrency and the current Covid19 pandemic conditions, this study aims to look at the perceptions of intention to use cryptocurrency for the people of DKI Jakarta based on the theory of planning behavior, namely, the individual's intention to accept something is seen from three factors, namely attitude toward, subjective norms, and Perceive Behavior Control. Several research results related to the theory of planning behavior, such as (Mazambani & Mutambara, 2019) stated that attitude toward and subjective norm significantly influenced the intention to adopt cryptocurrency in South Africa. (Ayudya & Wibowo, 2018) stated that attitude toward and perceived behavior control had a significant effect on intention to use e-money, while subjective norm had no significant effect on intention to use e-money in urban areas.…”

Readiness to the FinTech Industry in Developing Countries

“…Although South Africa is considered as a leading example in carrying out development and innovation with the latest trends, which supported the adoption of technological financial services (product portfolios, service delivery), such as the full execution of cryptocurrency, this latter is legally restricted in some other African countries. This technology also leads to a thorough application of blockchain in their infrastructure (Mazambani and Mutambara 2019).…”