Consumers’ Intention to Adopt m-payment/m-banking: The Role of Their Financial Skills and Digital Literacy

The adoption of mobile payment (m-payment) and mobile banking (m-banking) is low in several countries, despite its associated benefits. The present study examines the impact of Pakistani consumers’ financial skills and digital literacy on their intention to adopt m-payment/m-banking using the Technology Acceptance Model (TAM). The data were collected from 454 individual smartphone users residing in Punjab province via an online and offline questionnaire survey. Structural equation modeling was used to analyze the consumers’ data. The results endorse that (1) their financial skills have no association with intention to adopt but through perceived usefulness; (2) their digital literacy bridges a strong association with intention and through perceived ease of use. Furthermore, this study discusses the theoretical and practical implications of the findings, as well as limitations and future directions.