The Effectiveness of Data Encryption on Consumer Trust in Online Transactions in Pakistan

Abstract

In recent years, the fintech sector in Pakistan has experienced rapid growth, driven by increased smartphone penetration, government-backed digital policies, and rising consumer demand for convenient financial services. However, despite technological advancements and improved accessibility, many consumers remain hesitant to fully adopt digital financial platforms due to trust and security concerns. This study investigates the role of data encryption in fostering consumer trust and promoting the adoption of fintech applications, with a particular focus on the Zindigi platform by JS Bank. A quantitative research design was employed, targeting university students in Pakistan an audience most likely to engage with digital finance apps. Using a structured online survey distributed via Google Forms, the study assessed user perceptions regarding data encryption, brand credibility, and trust in fintech platforms. Analysis of the results using SPSS revealed a strong positive relationship between perceived encryption effectiveness and consumer trust. Furthermore, brand credibility was found to mediate this relationship, indicating that users’ trust is influenced not only by the security measures in place but also by how effectively these measures are communicated and perceived. The findings underscore the importance of marketing encryption as a trust-building tool rather than a technical back-end feature. Fintech platforms should focus on simplifying encryption language, incorporating trust cues into app design, and leveraging influencers to humanize digital safety. Practical recommendations include integrating localized, user-friendly educational content during onboarding, visual cues such as lock icons and secure dashboards, and transparency reports to reassure users. Ultimately, this study affirms that data encryption is not just a technical necessity but a cornerstone of consumer trust. To accelerate the adoption of digital financial services in Pakistan, fintech firms must prioritize user-centric communication strategies that make security feel both visible and personal.