Fintech Adoption Among Islamic Banking Users in Pakistan

Abstract

This study investigates the behavioral intentions of Islamic banking users towards adopting FinTech services in Pakistan, employing the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) framework. The research aims to analyze the influence of facilitating conditions, perceived value, hedonic motivation, cultural and religious acceptance, and innovative features with public awareness on user intentions. A quantitative, cross-sectional design was adopted, collecting data via a structured questionnaire from 250 Islamic banking customers using FinTech services in Karachi. Structural Equation Modeling (SEM) was used for analysis. The findings reveal that facilitating conditions, perceived value, hedonic motivation, and cultural and religious acceptance significantly influence user intentions, while innovative features and public awareness do not have a notable impact. These results underscore the central role of religious alignment, trust, and emotional satisfaction in FinTech adoption within Islamic banking. Theoretically, the study extends UTAUT2 in a faith-based financial setting, while practically offering insights for Islamic banks to prioritize Shariah-compliant, user-friendly digital services supported by awareness campaigns emphasizing religious congruency. Future research is recommended to explore trust, risk perception, and longitudinal patterns of FinTech adoption in Islamic finance markets.