FinTech Adoption and Consumer Trust: Evidence from Digital Payment Systems

Abstract

There have been tremendous developments and transformations within the sector of financial technology (FinTech) in recent times with significant impact on the financial industry especially in the case of developing nations like India. Factors like the growth of digital payments as a result of Digital India movement, demonetization and rising use of UPI are key aspects that have greatly aided the process of transitioning into a cashless world. Although there is huge growth in transactions, there still exist problems with issues such as mistrust, security risks and technological problems that are associated with the adoption of FinTech products. The current study is aimed at examining the impact of different factors influencing FinTech adoption amongst corporate employees in India as well as the influence of consumer trust on Perceived Usefulness, Perceived Ease of Use and Security with regards to the Adoption Intention of FinTech products. The cross-sectional design of this study was carried out on 500 corporate employees in diverse industries in India. The use of SEM technique enabled measurement and structural models to be tested. The findings reveal that the perception of the ease of use, usefulness, and security significantly impact consumer trust and directly affect FinTech adoption. Consumer trust partially mediates the relationship between the perception of technology and adoption decisions. This study highlights the importance of building trustful digital systems through cybersecurity practices, openness in communication, and user-centered designs. This study adds to the growing body of knowledge concerning FinTech, combining technology acceptance and trust theories to the Indian corporate setting.