Is Technophobe of Pakistan Ready to Accept Fintech: Impact of Financial Literacy on Electronic Payments Adoption with Trust as a Moderator

Abstract

Recently the world has faced an economic shock as a result of a pandemic outbreak, covid-19. Along the rest of the world, Pakistan get to face the crucial times too. The already crisis, adoption of technology in everyday financial matters, elevated the difficulty of consumers. This study aims at the relation between financial literacy and electronic payment system adoption with trust as a moderator. This research study makes a significant and an important contribution in the literature of fintech and the findings of this study can help financial intermediaries and tech houses of Pakistan to find out the potential reasons of individual’s lack in advanced financial technology adoption behavior and a possible solution to improve it through the encouragement of financial literacy. The current research study is conducted on the individuals who are 18+ and manage finances which they earn in Pakistan. Respondents working in organizations of Pakistan and are self-employed are who responded to the questionnaires distributed in respect of this research study collectively made the total number of 285 responses on which the different test and analysis were run using IBM SPSS Statistics. Results obtained after the analysis revealed that the financial literacy has a significant and a positive impact on E-payment adoption behavior. Trust was the moderator between financial literacy and E-payment adoption system. moderation result was also found to be the significant. It helped to achieve the aim of the current study of encouraging adoption of E-payment systems, as in its presence the individual’s will be more at ease as they are meant to be more effective and efficient.