Impact of FinTech Adoption on Financial Inclusion and Sustainable Agricultural Practices: Extending the Technology Acceptance Model among Smallholder Farmers in South Tamil Nadu, India

Abstract

This study investigates the role of Financial Technology (FinTech) adoption in enhancing financial inclusion and promoting sustainable agricultural practices among smallholder farmers in South Tamil Nadu, India. Extending the Technology Acceptance Model (TAM), this research integrates financial inclusion as a developmental outcome and mediator linking digital financial adoption with sustainability-oriented farming behaviour. Primary data were collected from 395 smallholder farmers across eight districts using a structured questionnaire. Structural Equation Modelling (SEM) using SmartPLS 4 was applied to evaluate the measurement and structural relationships.

The findings demonstrate that FinTech adoption significantly improves financial inclusion (β = 0.612, p < 0.001), which subsequently enhances sustainable agricultural practices (β = 0.548, p < 0.001). Financial inclusion partially mediates the relationship between FinTech adoption and sustainability outcomes (VAF = 55.6%). Among the determinants of adoption intention, perceived usefulness (β = 0.295, p < 0.001) emerged as the strongest predictor, followed by perceived ease of use (β = 0.146, p < 0.01) and perceived trust (β = 0.099, p < 0.001). Government support significantly influences attitudes toward FinTech adoption (β = 0.195, p < 0.001), highlighting the importance of institutional support in strengthening digital financial ecosystems.

This study contributes to the literature by extending TAM beyond behavioural intention to developmental outcomes, demonstrating how digital financial systems facilitate sustainable agricultural transformation through improved financial accessibility. The findings offer policy implications for promoting inclusive digital finance ecosystems aligned with Sustainable Development Goals (SDG 1, SDG 2, and SDG 13).