DIGITAL CONSUMER BEHAVIOR AND FINTECH ADOPTION IN PAKISTAN: THE ROLE OF TRUST AND FINANCIAL LITERACY

Abstract

The rapid growth of digital technologies has significantly transformed consumer financial behavior and accelerated the expansion of Financial Technology (FinTech) services worldwide. In Pakistan, FinTech adoption has increased due to rising internet penetration, smartphone usage, and digital financial initiatives; however, challenges related to trust and financial literacy continue to affect consumer acceptance of digital financial services. This study examined the influence of trust and financial literacy on digital consumer behavior and FinTech adoption in Pakistan. The study adopted a quantitative research design based on the Technology Acceptance Model (TAM). Primary data were collected through a structured questionnaire from 300 digital consumers using a convenience sampling technique. Statistical analysis was conducted using descriptive statistics, correlation analysis, and multiple regression analysis to examine the relationships among the study variables. The findings revealed that trust, financial literacy, and digital consumer behavior had significant positive effects on FinTech adoption. Trust was identified as a critical factor influencing consumers’ confidence in using digital financial platforms, while financial literacy enhanced consumers’ ability to understand and utilize FinTech services effectively. The results further indicated that digitally engaged consumers demonstrated a higher likelihood of adopting digital financial technologies. The study concluded that improving consumer trust and financial literacy can significantly enhance FinTech adoption and support financial inclusion and digital economic development in Pakistan. The findings provide valuable implications for policymakers, financial institutions, and FinTech companies seeking to strengthen the country’s digital financial ecosystem.