An Empirical Study of Digital Payment Users Using a Structural Equation Modelling Approach

Financial literacy and inclusion are essential to economic development, as they facilitate access to financial services and empower individuals to make informed decisions about their money. Despite India's impressive economic growth in recent years, a significant portion of the population, particularly low-income households, struggles with financial literacy and access to financial services. Financial technology (fintech) has emerged as a potential solution to address these challenges by providing innovative and accessible financial services to underserved communities. This paper examines the role of fintech in enhancing financial literacy and inclusion among low-income households in India. The study is based on a comprehensive review of existing literature and interviews with key stakeholders in the Indian fintech industry. The analysis reveals that fintech has the potential to significantly improve financial literacy and inclusion among low-income households in India. One key advantage of fintech is its ability to provide low-cost and convenient financial services, such as mobile banking and digital payments, which can help to reduce the financial barriers faced by low-income households. Additionally, fintech platforms can offer financial education and training programs to increase financial literacy and promote responsible financial behavior. Despite these benefits, however, several challenges are associated with using fintech to promote financial inclusion and literacy in India. One major obstacle is the need for digital infrastructure and internet connectivity in many rural areas, which limits access to fintech platforms. Additionally, there is a need for increased regulation and oversight of the fintech industry to ensure that consumers are protected from fraud and other risks. To overcome these challenges, the study recommends several policy measures that can support the development of fintech in India, including investment in digital infrastructure, the promotion of financial education and literacy programs, and the establishment of regulatory frameworks to ensure consumer protection and prevent fraud. In conclusion, fintech has the potential to play a significant role in enhancing financial literacy and inclusion among low-income households in India. However, to fully realize these benefits, policymakers must address the challenges associated with fintech adoption and ensure that fintech platforms are developed responsibly and sustainably. By doing so, India can significantly promote inclusive economic growth and reduce poverty and inequality.

Purpose - This research aims to focus on the potential prospects for FinTech adoption to enhance sustainable performance through financial literacy and financial inclusion. This study also explores the factors behind FinTech usage and its contribution to achieving sustainable performance, offering valuable implications for stakeholders in the financial institutions, particularly the banking sectors of Pakistan. Study Design/methodology/approach- The primary data was collected through survey questionnaires from 384 banking professionals across Punjab using convenience sampling. The analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) to examine relationships among FinTech adoption, financial literacy, inclusion, and sustainability. Findings- The empirical findings indicated that FinTech adoption has positive effects on the sustainable performance of the banking sector in Pakistan. In addition, financial inclusion significantly mediates this relationship, while digital financial literacy, despite its positive impact, does not act as a mediator. The results emphasize the need to integrate technological advancements and financial inclusion to achieve sustainability. Research Implications - This study highlights how FinTech adoption and digital financial literacy jointly enhance financial inclusion and sustainable performance in Pakistan’s banking sector. It offers practical insights into overcoming digital transformation challenges while contributing to economic growth. The research supports emerging markets in leveraging FinTech for building inclusive, resilient financial systems and provides strategic direction for policymakers, bankers, and financial institutions. Theoretically, it contributes to the Technology Acceptance Model and Good Public Theory by emphasizing how technology and knowledge, as public goods, enhance both organizational and individual sustainability outcomes. Originality/value - Research on FinTech Adoption and Sustainable Performance remains a new topic in academic literature, with the direct impact already well-studied. However, as far as the authors know, no study has looked at how FinTech adoption indirectly affects sustainable performance through digital financial literacy and financial inclusion. This study extends current research to examine the impact of FinTech adoption on sustainable performance while investigating how digital financial literacy might interact with it.

Financial technology (Fintech) has transformed entrepreneurial finance, offering innovative solutions for funding, payments, and financial management. Digital payments, a key aspect of fintech, enable fast, secure, and low-cost transactions. This review examines the impact of fintech and digital payments on entrepreneurial finance, highlighting trends, challenges, and future directions. The study analyses existing literature on fintech adoption, digital payment systems, and their effects on entrepreneurial finance. Findings from this study reveals that fintech and digital payments have increased access to finance for entrepreneurs, particularly in emerging markets. Digital payment systems, such as mobile money and online payment gateways, have reduced transaction costs and improved financial inclusion. Fintech platforms, like crowdfunding and peer-to-peer lending, have democratized access to capital. However, challenges persist, including regulatory hurdles, cybersecurity risks, and financial literacy gaps. The COVID-19 pandemic has accelerated fintech adoption, highlighting its importance in maintaining financial resilience. Fintech and digital payments have revolutionised entrepreneurial finance, offering opportunities for growth and financial inclusion. As fintech continues to evolve, entrepreneurs, policymakers, and financial institutions must collaborate to address challenges and harness its potential. Future research should focus on fintech’s impact on financial sustainability and exploring new technologies, such as blockchain and artificial intelligence, to enhance entrepreneurial finance.

This study aims to analyze the effect of financial literacy and digital payment on the performance of Micro, Small and Medium Enterprises (MSMEs) in Tomohon City. Using a quantitative approach with the type of explanatory research, this study involved respondents of MSME actors who were taken through proportional stratified random sampling techniques. Data analysis was conducted using Structural Equation Modeling (SEM) based on Partial Least Squares (PLS) with SmartPLS software version 4.0. The results showed that financial literacy has a positive and significant effect on MSME performance, indicating that increasing the understanding and ability of MSME actors in managing the financial aspects of the business is a crucial factor in improving business performance. MSME players with good financial literacy show superior ability to manage cash flow, conduct strategic business planning, and make the right investment decisions. In contrast, digital payment does not show a significant effect on MSME performance, although the direction of the relationship shows a positive trend. The findings provide important implications that financial literacy improvement programs need to be prioritized in the development of MSMEs, while the adoption of digital payment technology requires a more holistic approach by considering supporting factors such as technological infrastructure, digital literacy, and local market characteristics.

The purpose of this study is to examine and analyze the influence of financial literacy, financial socialization, self-control, financial technology, and digital financial literacy on financial behavior and financial well-being, and to examine the influence of financial behavior on financial well-being, including the mediating role of financial behavior in influencing the relationship between financial literacy, financial socialization, self-control, financial control, and digital financial literacy on financial well-being. The research method used was quantitative with SEM PLS analysis technique with a sample of 398 people. The findings of this study indicate that financial literacy, financial socialization, self-control, financial technology, and digital financial literacy significantly and positively influence the financial behavior of the millennial generation. A good understanding of financial concepts, educational support from the social environment, the ability to control oneself, and the use of conventional and digital financial technology encourage the formation of more disciplined, efficient, and planned financial behavior. Furthermore, this financial behavior directly contributes to improved financial well-being, where individuals are able to meet needs, manage finances wisely, and prepare for a more stable long-term financial condition. In addition to these direct influences, financial behavior has also been shown to be a mediating variable that strengthens the impact of financial literacy, financial socialization, self-control, financial technology, and digital financial literacy on financial well-being, thus further optimizing the creation of secure and sustainable financial conditions for the millennial generation.

Indians are increasingly using mobile banking (m-banking) services, which shows a growing trend in financial inclusion. A major segment of demography is represented by the housewives but there hasn't been much study done on the consumer category of Indian housewives, especially in terms of how they use technology-driven services like m-banking services. Even more so, their adoption and usage of financial technology has found little space in literature. This research attempts to predict Indian housewives’ intention to adopt m-banking services. An extended Technology Acceptance Model (TAM) is used in this study as the conceptual framework to investigate the effects of independent variables on the behavioral intention (BI) of Indian housewives to adopt m-banking services. These include perceived usefulness (PU), perceived ease of use (PEU), social influence (SI), openness to change (OC), and perceived risk (PR). A survey of Indian housewives using a carefully designed questionnaire was utilized to collect the data for this study. Structural equation modelling (SEM) was employed for the following analysis on a final sample of 269 respondents. The results of the study showed that all considered independent factor had a substantial impact on the dependent factor BI. Notably, among these variables, OC was shown to be the most significant facilitator, closely followed by PEU, both of which had a favourable impact on housewives’ intention to utilie m-banking services. As a key barrier to adoption, PR was found to be the opposite. Since not much work has been done on the factors influencing Indian housewives’ BI to utilize m-banking services, hence this study is one of the initial efforts to investigate the matter. Lastly thorough consideration has been given to the consequences for both theoretical development and real-world implementations.

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic development, contributing to employment generation and local revenue. However, their financial performance is influenced by several factors, including financial literacy, financial management practices, and financial technology (fintech) adoption. This study examines the relationship between these variables and the financial performance of MSMEs in Vigan City, Philippines. Employing a descriptive-correlational research design, data were collected from ninety (90) MSME owners and managers through a structured survey. The findings revealed that MSMEs in Vigan City exhibit a high level of financial literacy, financial management practices, and fintech adoption. However, gaps persist in the practical application of financial knowledge, long-term financial planning, and the utilization of fintech beyond basic transactions. Statistical analysis indicated a significant positive correlation between financial literacy, financial management practices, fintech adoption, and financial performance. These results suggest that strengthening financial education, encouraging proactive financial planning, and enhancing fintech integration can further improve MSME sustainability and profitability. This study provided valuable insights for policymakers, financial institutions, and MSME owners, offering strategic recommendations to enhance financial resilience, efficiency, and growth. By addressing key financial challenges, MSMEs in heritage cities like Vigan can achieve greater financial stability and long-term success.

PurposeThe purpose of this paper is to explore the impact of selected factors in adopting mobile-based online payment platforms (MOPP) in three Asian countries: China, India and Bangladesh through the application of Technology Acceptance Model (TAM). The factors considered were: perceived trust (PT), perceived risk (PR), social influence (SI), perceived ease of use (PEU) and perceived usefulness (PU).Design/methodology/approachThe authors purposively selected 1,289 individuals from those three countries who regularly use MOPP as the medium of monetary transactions. The authors utilized SPSS 24 for descriptive statistics and structural equation modeling (SEM) technique through AMOS 24 for testing the hypothesized relationships.FindingsThe authors found that four factors: PT, SI, PEU and PU have significant positive impact on the intention to adopt MOPP whereas PR has insignificant negative impact on the intention to adopt MOPP.Originality/valueAs per the authors' knowledge, this is the first study ever conducted to identify the factors impacting the adoption of MOPP in more than one country. Such an exploratory study can inspire the scholars to initiate further investigations as well as the service providers to extend their service effectiveness according to the users' opinion.

Financial Technology (Fintech) has become an essential issue in the past few years, especially for the companies that offer the products/services that require payment. This research explores the factors which drive companies to adopt fintech - risk perception, cost perception, organizational readiness, top management support, knowledge of information technology, customer pressure, and competitive pressure - and the benefits of its adoption. This research distributed questionnaires using purposive sampling method to the employees working in the companies adopting Fintech. There were 195 questionnaires analyzed using SEM-PLS. This research indicates that customer pressure, competitive pressure, organizational readiness, top management support, and knowledge of information technology have significant influences on Fintech adoption. However, risk perception and cost perception do not significantly affect Fintech adoption. Fintech adoption has a significant effect on organizational benefits. Companies can use this research to find the opportunities and risks when they adopt fintech in order to improve on innovating and maximize customers and partners’ satisfactions.

PurposeConsidering the ubiquity of FinTech services, the study proposes a research framework to examine FinTech adoption and use from the technology acceptance perspective by adding sub-constructs of technology acceptance model (TAM), unified theory of acceptance and use of technology (UTAUT), ServPerf and WebQual 4.0. This study broadly classified these sub-constructs in three dimensions: adoption, behavior and technological and explores the relationship between these attributes. It also proposes that digital behavior (Internet experience and level of awareness) and demographic characteristics (age and gender) moderate the main relationships.Design/methodology/approachThe measurement scale for the study is developed through iterative discussion with domain experts. The data are collected from 439 active Internet users though a digital survey and analysis were done by applying structural equation modeling and multi-group analysis.FindingsPerceived usefulness and social influence are found to be the key determinant for behavior intention to use FinTech services, with social influence having significant negative influence. Actual use is significantly influenced by ease of use and social influence but is not determined by behavior intention and perceived usefulness. Behavioral attributes are significantly impacted by technological attributes and digital behavior. Also, age significantly affects the perception of security among older users.Practical implicationsThis study will help FinTech service providers to design FinTech services considering a wide spectrum of users. More consideration should be on enhancing the usefulness and security features to create social affirmations for the use of FinTech services. This will entice users for frequent use and attract nonusers to do their first online financial transaction.Originality/valueThe study adds to the technology acceptance literature by incorporating relevant technological and behavioral attributes and investigating the moderating effect of digital behavior and demographic characteristics. It contributes to the understanding of user beliefs and perceptions about actual use of FinTech services.

the research investigates the influence of financial technology and financial activities on the business resilience of MSMEs in urban Batam. The study is motivated by the existing disparities in fintech adoption, financial literacy, and financial behavior among small business owners, which are critical determinants of organizational outcomes. Adopting a quantitative framework, a survey was conducted involving 187 local enterprises across the Batam Kota and Lubuk Baja districts. Primary data were collected via digital questionnaires and analyzed using a multiple linear regression model, facilitated by SPSS software. The empirical results domenstrate that financial technology, financial literacy, and financial attitudes exert a significant posititve impact on MSME performance, both individually (partially) and collectively (simultaneously). Specifically, financial technology emerged ad the most influential driver, followed by financial behavior and literacy. The coefficient of determination confirms that these three variables explain a substantial portion of the variance in business performance. Ultimately, this study validates that MSME growth is not the product of a single isolated factor but rather the result of a synergy between technological integration and robust financial competence. Consequentlu, strengthening both technological and financial dimensions is a vital strategy for ensuring the long-term sustainability and performance of the MSME sector.

This study investigates the factors influencing the acceptance of e-training among faculty staff at Sebha University using the extended Technology Acceptance Model (TAM2). A total of 74 responses were collected via Google Forms concerning subjective norm, image, job relevance, output quality, result demonstrability, perceived ease of use (PEOU), perceived usefulness (PU), experience, voluntariness, and intention to use. Measurement and structural models were evaluated using Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS 4. Reliability, internal consistency, and validity were confirmed, with Cronbach’s α ranging from 0.776 to 0.929 and AVE values from 0.688 to 0.876, indicating convergent validity. PEOU was found to predict PU, and both PEOU and PU predicted intention to use, albeit with weaker support than the model suggested (β = 0.441, p < 0.001; β = 0.284, p = 0.046; β = 0.314, p = 0.033). No significant effects were identified for subjective norm, image, job relevance, output quality, or result demonstrability. Moderation analysis revealed that experience and voluntariness had no effect on the impact of subjective norm on PU or behavioural intention (all p > 0.05; all f² < 0.01). The model accounted for 66.5% of the variance in PU and 56.6% in intention, highlighting the importance of perceived ease of use and usefulness in the adoption of e-training.

This study examines the relationships among financial literacy, digital financial literacy, technological literacy, and trust in artificial intelligence (AI) as predictors of consumer trust in fintech applications involving robo-advisors or chatbots. A sample of 117 college students responded to an online survey with scales designed to measure these constructs. Results confirmed that the three literacy measures were significantly correlated, reflecting their overlapping knowledge and cognitive perspective. However, trust in AI showed no significant correlation with any literacy measure, and regression analysis revealed that trust in AI was the sole statistically significant predictor of trust in consumer fintech. These findings suggest that fintech adoption is driven largely by trust rather than financial or technological competence, creating potential vulnerabilities when consumers lack the literacy to evaluate AI-generated financial advice. The results highlight the need for financial education programs to integrate fintech alongside traditional literacy topics and suggest a possible role for regulatory reform to support users of fintech.

FinTech has emerged as a powerful mediator for enhancing financial inclusion across emerging markets of the world and is also addressing persistent barriers to access traditional banking services, poor financial literacy, high transaction costs, and lack of trust in financial institutions. This study presents a paradigm for evaluating the effect of FinTech in improving financial inclusion in emerging markets, taking into account the fundamental variables that influence FinTech adoption. The paradigm also takes into account the mediating role of financial literacy in the digital age, as well as the moderating influence of perceived regulatory support on the link among finance technology adoption and financial inclusion. Literature identified in the proposed framework by simultaneously assessing the relationships between key factors like trust, service quality, perceived security, FinTech adoption, digital financial literacy, perceived regulatory support, and financial inclusion, while evaluating both direct and indirect effects to test the research hypotheses. According to the hypothesis, digital financial literacy is intended to play an intermediary role in the link between adoption of finance technology and financial inclusion, tempered by perceived regulatory support. The findings should have significant importance in providing insights into the factors that foster FinTech adoption and their role in driving financial inclusion, together with a number of practical recommendations on how to enhance digital financial literacy and regulatory environments to support FinTech innovations in emerging markets.

In the digital age, healthcare professionals are required to possess not only healthcare competencies but also financial and digital literacy to support better financial management and investment decision-making. Unhealthy financial behaviors, such as excessive spending and minimal allocation of funds for investment, are major obstacles. Additionally, low skills in utilizing digital platforms increase the risk of becoming a victim of fraudulent investments. This research aims to address this phenomenon by studying healthcare workers in Berau Regency, using the Structural Equation Modeling (SEM) approach. The research findings indicate that financial literacy does not directly influence the financial behavior of healthcare workers. Conversely, digital literacy and income have a positive and significant influence on financial behavior. Research has proven that favorable financial behavior not only enhances investment decision-making ability but also significantly mediates the influence of digital literacy and income on investment decisions. Financial literacy also has a positive direct impact on investment decisions, but this influence is not mediated by financial behavior, while digital literacy does not have a direct impact on investment decisions. Revenue plays an important role in supporting optimal and sustainable investment decisions. This finding provides a basis for the government and the Berau District Health Office to design financial and digital literacy education programs. Furthermore, this study's findings offer valuable insights to healthcare professionals about managing income and making investments that promote long-term well-being.