Abstract The evolution of financial technology (Fintech) has created opportunities to enhance financial services and increase financial inclusion, particularly in developing countries such as Pakistan. Despite these benefits, many individuals remain hesitant to adopt Fintech. This study explores the determinants shaping Fintech adoption in Pakistan through Valence theory, highlighting both positive and negative aspects. The novelty lies in showing how perceived risks, usually seen as barriers, may also strengthen trust and adoption intentions, with trust positioned as a central mediator. A structured survey was conducted with 211 participants, including existing and prospective Internet banking and mobile wallet users. Data analysis was performed using PLS-SEM. Results indicate that perceived benefits and risks influence trust and adoption intention. Among the various risks—financial, legal, security, and operational—operational risk was deemed the most critical. Unexpectedly, perceived risks positively affected trust and adoption intention. These counterintuitive findings suggest that, in this context, perceived risks may not always function as barriers and may instead be interpreted by users as signals of system maturity or institutional responsiveness. On the benefits side, convenience, smooth transactions, and economic advantages strengthened trust and adoption, with convenience being the most significant factor. Trust itself directly enhanced Fintech adoption. Fintech adoption enhances financial inclusion, minimizes transaction inefficiencies, and promotes equitable access to financial services, supporting sustainable development in emerging economies. This study provides new insights by revealing the dual role of risks and benefits in reinforcing trust. The findings guide policymakers and financial institutions in building strategies to expand Fintech adoption in emerging economies.
Malik et al. (Sat,) studied this question.