Investigating the Factors Influencing the Acceptance of Islamic Mobile Banking Services

The adoption of Islamic Mobile Banking (IMB) services remains a challenge in Pakistan, despite the increasing global growth of Islamic banking. Shariah compliance, security concerns, and trust issues significantly impact the acceptance of IMB services. This study integrates the Unified Theory of Acceptance and Use of Technology (UTAUT) with Islamic compliance to explore key factors influencing consumer adoption. Previous research suggests that regulatory confidence and performance expectancy play a pivotal role in technology acceptance (Venkatesh et al., 2012; Nasri, 2021; Hassan & Lewis, 2020). However, in the context of Islamic banking, additional variables such as financial security, awareness, and government regulations significantly shape user perceptions and adoption decisions (Mensah & Khan, 2024; Yusfiarto et al., 2024). A quantitative research methodology was employed, utilizing a structured survey to collect primary data from 400–500 respondents in Pakistan. The study applied Partial Least Squares Structural Equation Modeling (PLS-SEM) and SPSS for data analysis, ensuring validity and reliability (Hair et al., 2019). The results indicate that Government Regulation (GR) (β = 3.51, p < 0.01) and Performance Expectancy (PE) (β = 1.74, p < 0.05) are the strongest predictors of IMB adoption. Interestingly, Awareness (AWN) showed a negative impact (-3.20, p < 0.01), suggesting that consumer skepticism toward Shariah compliance and security may hinder adoption (Khan et al., 2023; Zouari & Abdelhedi, 2021). The findings highlight the critical role of regulatory transparency, perceived usefulness, and trust-building measures in driving IMB adoption. The study suggests that mere awareness campaigns are insufficient; rather, efforts should focus on strengthening Shariah governance, financial literacy, and cybersecurity measures to enhance user confidence (Ali & Hassan, 2022; Windasari et al., 2022). Future research should explore trust, risk perception, and ethical banking concerns as moderating factors influencing IMB adoption. Policymakers and financial institutions must adopt a holistic approach, ensuring that Islamic banking services align with consumer expectations while maintaining regulatory compliance. Expectancy (PE) (β = 1.74, p < 0.05) are the strongest predictors of IMB adoption. Interestingly, Awareness (AWN) showed a negative impact (-3.20, p < 0.01), suggesting that consumer skepticism toward Shariah compliance and security may hinder adoption (Khan et al., 2023; Zouari & Abdelhedi, 2021). The findings highlight the critical role of regulatory transparency, perceived usefulness, and trust-building measures in driving IMB adoption. The study suggests that mere awareness campaigns are insufficient; rather, efforts should focus on strengthening Shariah governance, financial literacy, and cybersecurity measures to enhance user confidence (Ali & Hassan, 2022; Windasari et al., 2022). Future research should explore trust, risk perception, and ethical banking concerns as moderating factors influencing IMB adoption. Policymakers and financial institutions must adopt a holistic approach, ensuring that Islamic banking services align with consumer expectations while maintaining regulatory compliance.