Technology acceptance model – Related antecedents and the performance outcome of financial technology adoption in small and medium enterprises

Background: Despite the increasing value of FinTech in emerging markets, empirical research pertaining specifically to South Africa’s small and medium enterprises (SME) sector remains scant. Consequently, this quantitative study explores factors affecting the adoption of financial technology (FinTech) solutions by SMEs in South Africa and also interrogates the relationship between FinTech adoption and organisational performance. Aim: The purpose of the study was to investigate factors affecting adoption of FinTech by SMEs in South Africa and the relationship between FinTech adoption and organisational performance. Setting: Leveraging the technology acceptance model (TAM), the study interrogated the nexus of the constructs of perceived usefulness, perceived ease of use, FinTech adoption and organisational performance of SMEs. Methods: Data were collected from a purposive sample of 1036 respondents across the country and were analysed using structural equation modelling (SEM), among other statistical tools. Results: Results obtained revealed that both perceived usefulness and perceived ease of use significantly affect FinTech adoption, which subsequently was shown to positively affect organisational performance. Conclusion: The findings of the current study affirm that the TAM offers a veritable framework for comprehending FinTech adoption, with perceived usefulness and perceived ease of use as pivotal elements, and further illustrate that FinTech adoption substantially enhances organisational performance among the studied SMEs in South Africa. Contribution: Instructively, the research enhances the theoretical comprehension of technology adoption and provides practical insights for policymakers, FinTech developers and SMEs, highlighting the necessity for user-centric and value-oriented solutions in the FinTech sector.