Determinants of fintech adoption: a qualitative study on small food businesses in Colombo and suburbs

Abstract

Financial technologies popularly known as FinTech offer multiple benefits to business firms and their customers. However, its adoption by small food businesses in Colombo and its suburbs is very low compelling the customers to use physical currency for purchases. It also deprives small businesses of harnessing the benefits FinTech offers. This paper describes findings of a qualitative inquiry conducted as the first phase of a mixed method research being conducted to understand the determinants of FinTech adoption. A comprehensive literature review was done using 63 publications in journals found in reputed databases. We collected data from 15 small food business owners located in 3 different areas in Colombo and suburbs through detailed interviews. MAXQDA software was used in analyzing data. Some of the factors popularly used in technology adoption models, namely the effort expectancy, price value, perceived usefulness, and perceived ease of use were justified through the qualitative study conducted. In addition, we found inadequate knowledge transfer from FinTech vendors to small food businesses as a factor that can hinder adoption. This finding is aligned with sequential coherence, a relatively new factor tested in technology adoption by researchers.