Determinants of FinTech Adoption in Karachi, Pakistan: Perceived Ease of Use, Trust, and Financial Literacy

Abstract

The use of financial technology (FinTech) has become a disruptive factor in the Pakistan financial scene, providing wider access to digital financial services, improving the efficiency of transactions, and increasing financial inclusion. Although the FinTech services are growing at an alarming rate; the level of adoption is disproportionate, and the user perception, trust to the digital platforms, their level of financial literacy influences their adoption. The research examines the drivers of FinTech adoption in Karachi, Pakistan focusing on three most crucial FinTech drivers; perceived ease of use, trust, and financial literacy. The paper is based on the Technology Acceptance Model (TAM) and the behavioral finance theories, and examines how these concepts affect user attitudes and intentions of adopting FinTech solutions. Through the use of survey data of 400 respondents, the results show that perceived ease of use significantly boosts the intention to adoption, trust has a positive moderating effect on the process of adoption, and increased financial literacy has a positive effect on the level of user engagement with digital financial platforms. The article provides empirical evidence to urge policymakers, fintech inventors, and financial institutions to develop user-centric ways to enhance digital financial inclusion to maximize the adoption rates in Pakistan.