Exploring adoption intention of mobile fintech services among merchants in a small island state: The mediating role of attitude

Abstract

This study investigates the determinants influencing the adoption of Mobile Fintech Services (MFS) among merchants in Mauritius, a Small Island Developing State (SIDS) transitioning toward a cashless economy. While consumer adoption has been widely examined, merchant perspectives remain underexplored. The research addresses this gap by examining how Facilitating Conditions, Perceived Security, Perceived Experience, and Performance Expectancy affect adoption intention, with attitude as a mediating variable. Drawing upon the Unified Theory of Acceptance and Use of Technology (UTAUT) and the Technology Acceptance Model (TAM), this study employs a quantitative approach. Data were collected from 261 merchants across Mauritius through a structured questionnaire using validated measures on a five-point Likert scale. Structural Equation Modelling (SEM) using AMOS was conducted to assess both measurement and structural models, testing direct and indirect relationships. Results indicate that attitude significantly predicts MFS adoption intention and mediates the effects of other constructs. Perceived Security exhibited a negative relationship with adoption intention, highlighting security concerns as a major barrier for merchants. Performance Expectancy, Facilitating Conditions, and Perceived Experience showed weak or insignificant influences. This study extends TAM and UTAUT by incorporating attitude as a central mediating factor within the context of a developing, post-pandemic economy. It provides novel insights into merchant adoption behaviour in SIDS and offers practical guidance for policymakers and financial institutions to address security perceptions and promote inclusive digital financial transformation.