Consumer Purchase Intention to Adopt E-Wallet in Rural Cities: A Perspective of Consumer Usage in the Textile Industry

Abstract

Despite digital payment solutions' growing popularity, rural Pakistani cities have yet to embrace e-wallets. This research uses an enhanced Technology Acceptance Model (TAM) and Unified Theory of Acceptance and Use of Technology (UTAUT) framework to evaluate customer buying intention to use e-wallets in Pakistan's rural textile sector. Partial Least Squares Structural Equation Modeling was used to examine 384 rural textile hub respondents' data. Perceived Usefulness (PU) and Behavioral Intention (BI) positively affect e-wallet adoption, but Perceived Financial Risk (PFR) adversely impacts adoption (β = -0.312, p < 0.01). Digital Financial Literacy (DFL) (β = 0.295, p < 0.001) substantially improves PU, demonstrating that financial understanding increases customer trust in digital transactions. EOU (β = 0.289, p < 0.001) significantly impacts BI, emphasizing the need for user-friendly mobile payment interfaces. Model explains R² = 67.4% of variation in e-wallet adoption, showing robustness of results. These findings highlight the need for targeted digital literacy initiatives, improved security, and government-led financial incentives to promote adoption. Future research should examine socio-economic inequities and regulatory frameworks to improve financial inclusion in rural economies