Readiness towards fintech adoption among micro-entrepreneurs in Malaysia

Abstract

Purpose

People start to acknowledge, accept and adopt fintech applications due to its flexibilities, compatibility, ease to use, security and usefulness. A growing body of research reveals a positive perception of micro-enterprises towards fintech instruments. Looking at the potential of the fintech platforms and tools in Malaysia, the purpose of this study is to look at the readiness of micro-entrepreneurs towards using it as a medium in generating more income and profit for their business.

Design/methodology/approach

This study uses a quantitative approach with 200 questionnaires distributed to micro-entrepreneurs in Malaysia. IBM SPSS was used to perform a preliminary analysis of the data (descriptive analysis), then partial least squares-structural equation modelling SmartPLS is used to test the hypothesised relationships.

Findings

This study found perceived ease of use H1 (β = 0.523, p < 0.01) and trust H4 (β = 0.211, p < 0.10) play an important role in readiness to adopt fintech. Whereas, security H3 (β = 0.068) and perceived usefulness, H2 (β = 0.120) are insignificant (rejected).

Practical implications

This study provides evidence on the factors that contribute most towards the inclination to use fintech application among micro-entrepreneurs. In fact, tightening the policy regarding the security matter could enhance the readiness of micro-entrepreneurs to use fintech application.

Originality/value

This study investigates factors that influence the readiness of micro-entrepreneurs to adopt fintech application, which were not considered by previous studies.

Citation

Nik Azman, N.H., Zull Kepili, E.I., Allah Pitchay, A. and Mokhtar, H. (2024), "Readiness towards fintech adoption among micro-entrepreneurs in Malaysia", Journal of Science and Technology Policy Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JSTPM-02-2024-0053