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Understanding the Determinants of FinTech Adoption: Integrating UTAUT2 with Trust Theoretic Model

Author

Listed:
  • Muhammed Basid Amnas

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India)

  • Murugesan Selvam

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India)

  • Mariappan Raja

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India)

  • Sakthivel Santhoshkumar

    (Department of Commerce and Financial Studies, Bharathidasan University, Tiruchirappalli 620024, India)

  • Satyanarayana Parayitam

    (Department of Management and Marketing, Charlton College of Business, University of Massachusetts Dartmouth, Dartmouth, MA 02745, USA)

Abstract

Financial technology (FinTech) is transforming the financial services industry by offering innovative, convenient solutions for businesses and individuals. This study examines the factors influencing FinTech adoption, with a special focus on trust. By integrating insights from both the unified theory of acceptance and use of technology (UTAUT2), and the trust theoretic model (TTM), this research uncovers critical determinants of FinTech adoption. Utilizing survey responses obtained from 399 participants, this research employs the partial least squares structural equation modelling method. The findings reveal that performance expectancy, effort expectancy, social influence, habit, price value, and facilitating conditions significantly influence users’ intentions to use FinTech services. In addition, the study shows that trust plays a crucial role in FinTech use, as it influences both the intentions to use and the actual use of FinTech. Surprisingly, hedonic motivation was found not to affect users’ intentions, implying that people see FinTech as a practical, rather than enjoyable, endeavor. These insights provide valuable guidance for service providers and policymakers seeking to enhance FinTech adoption and utilization while ensuring the security and trustworthiness of these digital platforms.

Suggested Citation

  • Muhammed Basid Amnas & Murugesan Selvam & Mariappan Raja & Sakthivel Santhoshkumar & Satyanarayana Parayitam, 2023. "Understanding the Determinants of FinTech Adoption: Integrating UTAUT2 with Trust Theoretic Model," JRFM, MDPI, vol. 16(12), pages 1-23, December.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:12:p:505-:d:1295158
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    References listed on IDEAS

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    1. Schaarschmidt, Mario, 2016. "Frontline employees' participation in service innovation implementation: The role of perceived external reputation," European Management Journal, Elsevier, vol. 34(5), pages 540-549.
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    Cited by:

    1. Köster, Max Antonius & Hurst, William & Krampe, Caspar, 2025. "Financing sustainable farming: The role of trust in the adoption of fintech by farmers," Technological Forecasting and Social Change, Elsevier, vol. 220(C).
    2. Maslinawati Mohamad & Fatmawati Jusoh & Noor Faiza M. Ja'afar & Rabiatul Alawiyah Zainal Abidin, 2024. "From Threat to Shield: How Fintech Empowers Financial Institutions in Combating Fraud," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(14), pages 346-354, December.
    3. repec:bcp:journl:v:9:y:2025:i:10:p:1728-1739 is not listed on IDEAS
    4. Mohd Fairuz Adnan & Erisya Nadira Efendi & Muhammad Wafiy Asyraf Zamri & Nuremilianatasha Ridwan & Yusrah Yusoff, 2025. "Factors Influencing User Retention and User Experience in Malaysian Fintech," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(3), pages 3259-3272, March.
    5. Shubham Goswami & Vineet Chouhan & Pranav Saraswat, 2025. "FinTech adoption: driving financial inclusion at the bottom of pyramid," Future Business Journal, Springer, vol. 11(1), pages 1-14, December.
    6. Amna Albuainain & Simon Ashby, 2025. "Enablers and Barriers in FinTech Adoption: A Systematic Literature Review of Customer Adoption and Its Impact on Bank Performance," FinTech, MDPI, vol. 4(3), pages 1-35, September.
    7. António Cardoso & Manuel Sousa Pereira & Amândio Silva & André Souza & Isabel Oliveira & Jorge Figueiredo, 2024. "The Influence of Digital Influencers on Generation Y’s Adoption of Fintech Banking Services in Brazil," Sustainability, MDPI, vol. 16(21), pages 1-27, November.
    8. K Padma Kiran & Naga Sailaja Vedala, 2025. "Assessing Unified Payments Interface (UPI) adoption and usage through the interplay of UTAUT factors," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    9. Libina Babu & Gireesh Kumar G S, 2025. "Exploring User Acceptance of Fintech Innovations: A Systematic Review of Theoretical Models and Empirical Studies," The Review of Finance and Banking, Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante, vol. 17(1), pages 71-91, June.

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