THE ROLE OF TRUST AND DIGITAL LITERACY AS A MEDIATOR BETWEEN PERCEIVED RISK AND FINTECH ADOPTION IN JORDAN

Abstract

This research aimed to examine the mediating roles of trust and digital literacy in the relationship between perceived risk and fintech adoption intentions. A survey of 300 Jordanian consumers measured perceived risk, trust, digital literacy, and fintech adoption intentions. Structural equation modeling analyzed the conceptual framework. Trust and digital skills also proved as mediators that partially weakened risk and adoption intentions for fintech. The more-the-risk-is-seen-trust-and-digital-literacy dives-and gradually reduces adoption intentions. Such a study which used transaction logs demonstrated that empowering the digital literacy and trust building though interventions can really speed up the process of financial technology adoption among risk conscious population. The novel contribution of this study is in the unravelling of d mechanisms by which it is perceived risk that leads to fintech use and in the laying bare of trust and digital literacy’s mediating effects.