Deepening the mediating role of financial literacy and the cyclic effects in Paytech adoption in Jordan

Abstract

Purpose Based on the Stimulus-Organism-Response-Consequence (SORC) framework, our study proposes a model to examine how social influence and religiosity impact the behavioral intention and use of Paytech services, focusing on the mediating role of financial literacy. As a main contribution, the cyclical relationship between actual usage with financial literacy and intention to use payment technology services is also examined. Design/methodology/approach The study uses a questionnaire to collect data from 406 respondents from Jordan aged above 18 with access to digital platforms in the spring of 2024. The Partial Least Squares-Structural Equation Model (PLS-SEM) is applied to evaluate the proposed research model. Building on the methodology presented by Lamberti et al. (2024) for analyzing cyclicity in causal models, we address the bidirectional influences between Paytech adoption variables. Findings Religiosity and social influence serve as critical external stimuli shaping consumer attitudes and behaviors toward Paytech service acceptance within an Islamic context. Additionally, financial literacy not only exerts a direct effect on usage but also mediates the relationship between intention and use. Notably, our analysis reveals a self-reinforcing dynamic as positive usage experiences continually strengthen intention over time, thereby supporting the experience-intention cycle in which greater use enhances both financial education and intention to use Paytech services. Research limitations/implications This research deepens the theoretical understanding of Paytech adoption by revealing cyclical reinforcement patterns that may be generalized across other financial technology contexts. Practical implications Practically, our findings highlight the importance of developing culturally and religiously sensitive financial technologies in Jordan to promote the uptake of digital financial services. Social implications From a social perspective, Paytech adoption can expand financial inclusion and reduce informal economic activity. Thus, this study provides actionable guidance to policymakers and financial service providers aiming to implement Paytech solutions in similar socio-cultural environments. Originality/value To the best of our knowledge, this is the first study to comprehensively investigate the role of financial literacy as a mediator between the intention to use and actual adoption of Paytech services, while also exploring the potential cyclical effects arising from usage. Although previous research has primarily examined the direct impact of financial literacy on the usage of Fintech products, the mediating and cyclical relationships between intention, usage, and financial literacy remain largely unexplored. Addressing this gap is particularly timely, as the rapid advancement of Fintech underscores the urgency of enhancing financial literacy to effectively leverage innovative financial products and services in emerging markets such as Jordan.