Unveiling the Determinants of Intention to Use Fintech among Gen Y and Gen Z in Pakistan

Abstract

This study investigates the intention to use Fintech among Generation Y and Z in Pakistan and explores the key factors influencing this intention. Using survey data from FinTech users, Partial Least Squares Structural Equation Modeling (PLS-SEM) is employed to assess the effects of Effort Expectancy, Performance Expectancy, Social Influence, Facilitating Conditions, Hedonic Motivation, Price Value, and Habit on behavioral intention. Grounded in the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) framework, the study extends its applicability to emerging markets and offers significant implications for FinTech companies and policymakers. Promoting routine usage, affordability, and trust-building strategies may accelerate the adoption of digital finance among Pakistani youth. Results indicate that Price Value and Habit are the strongest predictors of FinTech adoption across both generations. Hedonic Motivation exerts a significant yet varying influence, positive for the overall and Generation Y samples, suggesting that enjoyment encourages adoption for some users, while Facilitating Conditions remain insignificant across all models.