Consumer intention to adopt digital financial services in Egypt : an extended technology acceptance model

Abstract EN

Digital finance is a key driver of financial inclusion in Egypt and an important channel of financial service delivery.

Digital finance creates new opportunities to unbanked population, increase effectiveness by facilitating individuals' daily financial transactions, and offer wider financial choices for start-ups.

However, achieving higher digital financial inclusion is not determined only by the service provider, but also by consumers' acceptance to use digital financial services which is a salient driver to the success of digital finance adoption.

This study contributes to the literature by being one of the pioneer studies that identify the factors influencing consumer intention to use not only internet banking but all digital financial services in Egypt.

Extended technology acceptance model (TAM) was used that incorporates, perceived usefulness, perceived ease of use, perceived risk, perceived cost, government support, and trust as main factors.

A questionnaire was designed and distributed electronically to anyone that may use digital financial service.

A valid 167 eligible responses were obtained.

PLS – SEM method was utilized where measurement model is analysed to test the validity and reliability of the instruments and then hypothesis was tested using structural equation model.

The results revealed that perceived usefulness (PU) and trust (TRU) have positive significant impact on consumers' intention (INT) to use digital financial services while perceived ease of use (PEU), perceived Risk (PR), and Perceived cost (PC) have no effect on consumers' intention.

Furthermore, regarding government support (GS), the results were surprising where no impact on consumers' usage intention was found.

However, perceived risk and government support have indirect effect on consumer's intention through their effect on consumers' trust, thus TRU is said to play a significant intermediary role.