Unlocking SME Growth: The Impact of Fintech Adoption in Pakistan

Abstract

Financial technology, or fintech emergence has brought unparalleled transformation and impacts on Pakistan's SME business environment. The article delves into the fintech solutions impacts, including digital payment systems and automated financial tools in overcoming key barriers. The study highlighted digital financial services in enhancing SME's financial accessibility. This research investigates Fintech adoption among SMEs in Pakistan with the Technology Acceptance Model, analyzing data from 415 respondents via Smart PLS 3. The results reveal that PU, PEU, trust, FL, and user innovativeness substantially propel SMEs' adoption of Fintech, but financial literacy indirectly affects adoption via user innovativeness as a mediator. The study emphasizes Fintech's capacity to address financial accessibility disparities, especially for financially illiterate SMEs, and advises government agencies to enhance Fintech infrastructure to improve financial service provision and stimulate economic growth.