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

Abstract

The rapid expansion of financial technology (fintech) has transformed traditional financial systems by enabling digital payment solutions, mobile banking, and online financial services. In emerging economies such as Pakistan, fintech adoption remains uneven despite increasing digital infrastructure, primarily due to behavioral, psychological, and financial capability constraints. This study examines the influence of digital consumer behavior on fintech adoption in Pakistan, while investigating the mediating role of trust and the moderating role of financial literacy. A quantitative, cross-sectional research design was employed, and data were collected from 387 fintech users across major cities of Pakistan using a structured questionnaire. The results, analyzed through regression, mediation, and moderation techniques, reveal that digital consumer behavior significantly and positively influences fintech adoption. Trust was found to partially mediate the relationship between digital consumer behavior and fintech adoption, indicating that greater digital engagement enhances adoption primarily through increased consumer trust. Furthermore, financial literacy was found to significantly strengthen the relationship between digital consumer behavior and fintech adoption, suggesting that financially knowledgeable individuals are more likely to convert digital engagement into actual fintech usage. The study contributes to the Technology Acceptance Model by integrating behavioral and financial dimensions within a unified fintech adoption framework. The findings offer practical implications for fintech providers, financial institutions, and policymakers in designing trust-enhancing systems and financial literacy initiatives to promote digital financial inclusion in Pakistan