What influences consumer’s intention to adopt Islamic digital wallet? Decoding the role of diffusion of innovation and Hofstede’s cultural model

Purpose Digital banking has shown exponential growth in financial sector to manage payments. Nevertheless, consumers have shown less interest toward adoption of Islamic digital wallet which is the latest invention in fin-tech industry. To address this issue, current study aims to integrate task technology fit model, diffusion of innovation and perceived vulnerability altogether and investigate consumer intention toward adoption of Islamic digital wallet service. Aside of technology factors this study has tested impact of cultural factors, namely, uncertainty avoidance and individualism toward adoption of Islamic digital wallet. Design/methodology/approach This study is based on quantitative research method and collects data through survey questionnaires. The positivist research paradigm is selected to design this research. Overall, 209 banking customers had participated in Islamic digital wallet survey. These numerical responses were then tested with structural equation modeling approach. Findings Results have indicated that jointly compatibility, innovativeness, task technology fit, uncertainty avoidance and individualism have explained substantial variance R2 70.4 % in determining user intention to adopt Islamic digital wallet service. In extended model user intention to adopt Islamic digital wallet service and perceived vulnerability have shown large variance R2 49.1% in usage of Islamic digital wallet service. On the flip side effect size analysis discloses that individualism has medium effect size in measuring user intention to adopt Islamic digital wallet service. Practical implications This study has developed an integrated research model with perceived vulnerability, diffusion of innovation and task technology fit model and hence contributes to body of knowledge. Similarly, examining impact of cultural factors toward consumer adoption of Islamic digital wallet adds a new dimension in this study and enriches literature. Practically, this research has suggested that policy makers should pay attention toward compatibility, individualism and task technology fit of Islamic digital wallet application to enhance user confidence toward adoption and use of Islamic digital wallet service. Originality/value This research is unique as it integrates task technology fit model and diffusion of innovation theory toward adoption of Islamic digital wallet service. In addition to that two core dimensions of culture, namely, uncertainty avoidance and individualism were examined in the context of Islamic digital wallet and enhance originality of this research.