The interplay of perceived benefit, perceived risk, and trust in Fintech adoption: Insights from Sub-Saharan Africa

Abstract

As financial technology (Fintech) continues to reshape the design and delivery of financial products, there is a growing interest in investigating the enablers and inhibitors of Fintech adoption in developing markets. This paper aims to empirically examine the risk-benefit factors associated with Fintech adoption. It further explores the mediating effect of trust in the relationship between risk-related factors and Fintech adoption intentions. The paper utilizes the survey approach to gather data across four countries in Sub-Saharan Africa (SSA). We employ partial least squares-structural equation modelling (PLS-SEM) and fuzzy-set qualitative comparative analysis (FSQCA) techniques to analyse our dataset. The study identified economic benefits, performance expectancy, and effort expectancy as important enablers of Fintech adoption. Conversely, perceived legal risk, security risk, and privacy concerns act as significant inhibitors of Fintech adoption. Furthermore, the findings provide support for the mediation model, suggesting that trust dampens the negative effect of perceived risk on Fintech adoption. The FSQCA results confirm the principle of equifinality as there are multiple causal configurations that can lead to high Fintech adoption. The estimated PLS-SEM model exhibits robustness, as there are no issues regarding unobserved heterogeneity, common method bias, or multicollinearity. Furthermore, the model demonstrates reasonable predictive accuracy as evidenced by acceptable R-square, F-square, and Q-square values. Policymakers, financial institutions, and Fintech firms can leverage the study's findings to shape their strategies, raise consumer awareness, and design innovative financial products that cater for the needs of consumers in Africa. � 2025 The Authors