INNOVATING PAYMENTS SUSTAINABLY: A JOURNEY THROUGH RISKS, REWARDS, AND REGULATORY READINESS

Abstract

Despite its potential, FinTech payments are not yet mainstream, with traditional cards and cash still preferred globally, including in Malaysia. This study investigates factors influencing FinTech payment usage in Malaysia using Unified Theory of Acceptance and Use of Technology (UTAUT), meta-UTAUT, and Valuebased Adoption Model (VAM), encompassing system properties, individual characteristics, and external environment. A total of 546 responses were collected across 13 Malaysian states via stratified random sampling and analysed using PLS-SEM. Results show that effort expectancy, social benefit, openness to change, and attitude significantly influence intention. Attitude also mediates the effects of performance and effort expectancy, economic and social benefit, regulatory support, and openness to change on intention. In contrast, social influence, and perceived security and privacy risks had no significant effect on attitude or intention. To our knowledge, this is the first study to integrate UTAUT, meta-UTAUT, and VAM into a unified model for FinTech payment adoption. The combined framework offers valuable insights to guide strategies aimed at increasing adoption of these technologies.