What Drives Fintech Adoption? A Study Of Financial Literacy’s Moderating Role In India

Abstract

This study meticulously examines the principal drivers of FinTech adoption in India, with a particular emphasis on the moderating influence of financial literacy. Utilizing the Technology Adoption Model (TAM), it identifies critical factors that shape FinTech adoption behaviours. Data were meticulously collected from 399 respondents across various Indian states through an online Google form and analysed employing SmartPLS 3.3 path modelling. The findings reveal that social influence and transaction processes exhibit significant positive correlations with FinTech adoption, whereas rewards and trust appear to have negligible effects on adoption decisions. Financial literacy emerges as a pivotal moderating variable, enhancing the favourable influences of perceived ease of use and perceived usefulness on adoption outcomes. These insights carry profound implications for stakeholders, delineating strategies to bolster adoption and address disparities in financial inclusion across diverse user segments in India.