An Empirical Study of Digital Payment Users Using a Structural Equation Modelling Approach

The rapid expansion of financial technology (Fintech) has revolutionized the digital payment ecosystem, significantly shaping consumer behavior and adoption patterns. This study aims to identify the key primary drivers influencing Fintech adoption among digital payment users by employing Structural Equation Modeling for empirical validation. The proposed conceptual framework examines Fintech adoption as the dependent variable, incorporating digital literacy (DL) as a moderator, trust as a mediator, and risk perception (RP), financial literacy, perceived ease of use (PEU), and social influence as independent variables. A primary dataset was analyzed using AMOS to assess the measurement and structural models. The study enhances the existing body of literature by exploring the moderating effect of DL on the relationship between PEU and Fintech adoption and the mediating role of trust in the relationship between risk perception and adoption. The findings are expected to provide valuable implications for financial institutions, policymakers, and technology developers in fostering digital payment adoption and enhancing consumer trust in Fintech services.