Digital literacy and net benefits in SMEs: Evidence from an extended UTAUT model of payment technology adoption in developing countries

Digital payment systems have experienced rapid growth and have become a crucial component of the global financial ecosystem, including in developing economies. While these systems offer efficiency, security, and enhanced financial inclusion, their adoption among SMEs remains uneven, facing several barriers. Key challenges include limited digital literacy, inadequate infrastructure, and a lack of trust in new technologies. This study aims to examine the determinants of digital payment adoption by extending the Unified Theory of Acceptance and Use of Technology (UTAUT) framework. Data were collected from 234 SMEs owners who actively use digital payments in their business operations. The dataset was analyzed using PLS-SEM. The findings reveal that effort expectancy (EE) and digital literacy (DL) have a significant influence on both behavioral intention (BI) and user satisfaction (SATS). Although performance expectancy (PE) does not directly affect BI, it positively impacts satisfaction. Conversely, security (SCR) and trust (TRS) were not found to significantly influence BI, suggesting that SMEs users prioritize practical benefits over technical assurances. Furthermore, user satisfaction emerged as a critical mediator, driving perceived net benefits (NB) both directly and indirectly through behavioral intention. This study contributes to the literature on financial technology adoption by advancing the application of the UTAUT framework within the SMEs context. The results provide valuable implications for fintech developers and policymakers. Enhancing digital literacy and ensuring ease of use are identified as key strategies to foster inclusive and sustainable digital transformation among SMEs.