Understanding FinTech Adoption Drivers for Digital Financial Sustainability in Urban and Rural MSMEs

This study investigates the determinants of FinTech adoption and its role in supporting financial inclusion among micro, small, and medium enterprises (MSMEs) in South Sumatra, Indonesia. The analysis applies an extended Unified Theory of Acceptance and Use of Technology (UTAUT) framework that incorporates digital financial literacy, artificial intelligence literacy, green self-identity, and perceived green finance. Data from 632 MSMEs, comprising 377 rural and 255 urban enterprises, were analyzed using partial least squares structural equation modeling (PLS-SEM), multi-group analysis (MGA), and importance performance map analysis (IPMA). The results indicate that facilitating conditions represent the most influential determinant of FinTech adoption among rural MSMEs, while effort expectancy emerges as the dominant factor in urban enterprises. FinTech adoption also significantly strengthens both FinTech continuance intention and financial inclusion across the two groups, highlighting the role of digital financial technologies in promoting inclusive economic development. In addition, the IPMA shows that rural MSMEs place strong emphasis on facilitating conditions as the key driver of FinTech adoption, whereas urban MSMEs prioritize effort expectancy. By extending the UTAUT framework with sustainability-related constructs, this study provides new evidence on how digital financial innovation can support inclusive growth and contribute to Sustainable Development Goal 8.