Valuing trust: a comparative economic analysis of fintech adoption by SMEs and youth in urban Egypt

Purpose This study examines the adoption of financial technology (fintech) among young consumers and small and medium-sized enterprises (SMEs) in urban Egypt. Moving beyond traditional technology acceptance models, it assesses the key barriers, drivers and the resulting impact on socio-economic inclusion, framing fintech as a critical enabler for sustainable economic development. Design/methodology/approach Employing a quantitative survey design, data were collected from 448 respondents in major Egyptian urban centers (Cairo and Alexandria). The data were analyzed using multiple regression to identify predictors of adoption, independent samples t-tests to compare the two groups and moderation analysis to assess the role of digital literacy. Findings The results reveal that perceived trust is the most powerful predictor of fintech adoption, followed by digital literacy and low complexity; perceived cost was not a significant barrier. Crucially, higher fintech adoption is a strong predictor of enhanced perceived financial inclusion and SME business growth. The study also identifies significant differences in barriers between youth (who are trust-sensitive) and SMEs (who are complexity-sensitive). Research limitations/implications The study’s cross-sectional design and urban focus limit the ability to draw causal inferences or generalize findings to rural contexts. Theoretically, it extends adoption literature by integrating institutional theory and diffusion of innovation into a unified, impact-oriented framework. Practical implications Policymakers should shift focus from market access to “trust architecture” (e.g. certification programs). Fintech providers must segment their approach: prioritizing privacy assurance for youth and seamless workflow integration for SMEs. Furthermore, educational initiatives focusing on digital literacy are critical to maximizing the economic return on digital infrastructure. Originality/value This research contributes a validated model for fintech adoption applicable to other urban emerging markets. It offers a rare comparative analysis of the “demand-side” (Youth) and “supply-side” (SMEs) of the digital economy, demonstrating that fostering a trusted and educated user base is more critical than cost competition for achieving national sustainable development goals.