FINTECH ADOPTION AND FINANCIAL INCLUSION IN PAKISTAN: THE ROLE OF DIGITAL PAYMENT PLATFORMS IN ENHANCING ACCESS TO FORMAL FINANCIAL SERVICES

Abstract

Financial inclusion is a critical driver of economic development, yet a significant portion of Pakistan’s population remains excluded from formal financial systems. This study investigates the role of FinTech adoption and digital payment platforms in enhancing access to formal financial services in Pakistan. Grounded in the Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT), the research employs a quantitative approach using survey data from 310 FinTech users across urban and semi-urban areas. Structural Equation Modeling (SEM) was applied to test the hypothesized relationships. The findings indicate that FinTech adoption, digital payment platforms, mobile banking, and digital wallets significantly enhance financial inclusion. Digital financial literacy and regulatory support emerged as key antecedents, while internet accessibility strengthened the adoption-inclusion relationship. Additionally, FinTech adoption mediates the effect of digital payment platforms on financial inclusion. The study provides empirical evidence for policymakers, financial institutions, and FinTech providers to design strategies that promote inclusive financial ecosystems in developing countries.