IMPACT OF PERCEIVED RISK AND PERCEIVED BENEFIT IN THE ADOPTION OF DIGITAL FINANCE: MODERATING ROLE OF FINANCIAL LITERACY

Abstract

The purpose of this study was to investigate the moderating effect of Financial Literacy among the relationship of Perceived risk and Perceived benefit on the digital finance adoption. Methodology & Design This research was literature-based study, where the data was collected from primary sources by using survey questionnaire. The sample size of this study was 350 respondents. Deductive approach was used for this study. It was quantitative approach of research because the researcher collects data through questionnaire base, and it is cross sectional data because the researcher collected data from one person i.e., once a time and it is explanatory study. Findings The findings revealed that perceived risk significantly negative and perceived benefit significantly positive impact on the adoption of digital finance. Additionally, financial literacy also significantly positive impacts on the perceived risk, perceived benefit, and adoption of digital banking as well. Limitations & Recommendations Although the research studies objectives are accomplished but the study carries number of limitations that can serve as a potential area for future research studies. First of all, study was carried out in Pakistan which is a developing country. One of the other constraints includes that the current study was based on primary studies while in future it can be done on secondary data. Also, existing study was based on the intension of adoption while other benefits and risks can be used in future that gain significance importance over time. In this way, I recommended future studies must be conduct awareness in people about their services which are offered by digital finance. This study can also be conducted in developed countries.