FinTech application adoption and satisfaction model with digital literacy and financial literacy extending Vroom's expectancy theory

Purpose This study examines the motivational mechanisms underlying FinTech application adoption and user satisfaction in an emerging economy by extending Vroom's Expectancy to Instrumentality to Valence (EIV) theory. Addressing limitations of dominant technology acceptance models that underplay user capability and motivation, the study integrates digital literacy and financial literacy as foundational enablers of expectancy formation and value realization. Design/methodology/approach Using a cross-sectional survey design, data were collected from 832 active FinTech users across urban and rural regions of Gujarat, India. Measurement and structural models were tested using confirmatory factor analysis (CFA) and structural equation modeling (SEM) in SPSS 22 and AMOS 26. Reliability, validity, mediation effects and robustness checks were systematically assessed. Findings Results demonstrate that hedonic value, utilitarian value, self-efficacy, digital literacy and financial literacy significantly enhance expectancy, while subjective norms do not. Expectancy positively influences competence, which partially mediates its effect on valence. The extended model explains substantial variance in expectancy (R2 = 0.68), competence (R2 = 0.54) and valence (R2 = 0.62), underscoring the critical role of literacy in shaping motivational beliefs and satisfaction. Research limitations/implications The study focuses on payment-oriented FinTech applications within a single Indian state, limiting generalizability. Future studies may extend the framework to investment-based FinTech services and adopt longitudinal designs. Practical implications Findings highlight the necessity for FinTech providers and policymakers to embed digital and financial literacy interventions within platform design and user engagement strategies to enhance adoption, trust and financial inclusion. Originality/value This study offers a theoretically integrated and empirically validated extension of Vroom's EIV framework, positioning literacy as a central motivational capability in FinTech adoption an area largely overlooked in prior models.