The impact of Income on Adoption of E-payment with Mediating Role of Financial Well-Being in the Twin Cities of Pakistan

Abstract

The central focus of the thesis under discussion is to examine the impact of new e-payment technologies on income and adoption of e-payment, with a particular emphasis on the mediating role of financial well-being. The existing literature reviewed in this study suggests that the relationship between income and the adoption of e-payment, as well as the relationship between income and financial well-being, has been explored in various studies across different industries. However, the current research aims to delve deeper into these relationships within the specific context of small and medium enterprises (SMEs) located in the twin cities of Pakistan. The positivist philosophical approach and a survey-based data collection method has been employed for this study. The primary data was gathered using a Likert-scale questionnaire from the target respondents. The data analysis was conducted using two prominent statistical software: Smart PLS4 and SPSS. To assess the measurement model, the internal consistency, discriminant validity, and convergent validity of the constructs. For the structural model, path coefficients utilized to examine the relationships between the variables. Furthermore, bootstrapping techniques was employed to test the mediating effect of financial well-being on the relationship between income and adoption of e-payment systems. The results of the study provide valuable insights into the dynamics of e-payment technology adoption and its interplay with income and financial well-being. The findings indicate that income has a significant positive impact on both the Adoption of e-payment systems and the financial well- being of individuals. Additionally, the study reveals that financial well-being positively influences the adoption of e-payment technologies. Notably, the study also found that financial well-being fully mediates the relationship between income and adoption of e-payment systems. This suggests that the impact of income on the adoption of e-payment technologies is largely channeled through its effect on the financial well-being of individuals. The findings of this study hold important implications for both academic research and practical applications. From a theoretical perspective, the study contributes to the existing body of knowledge by exploring the intricate relationships between Adoption of e-payment technologies, income, and financial well-being in the context of SMEs. This adds to the understanding of the complex dynamics that shape consumer behavior and technology adoption in emerging markets. For practitioners, the insights gained from this research can inform the strategic decisions of policymakers, financial institutions, and e-payment service providers. By understanding the pivotal role of financial well-being in mediating the relationship between income and consumer acceptance of e-payment, these stakeholders can develop targeted interventions and initiatives to promote financial inclusion and the widespread adoption of digital payment solutions, particularly among SMEs.