Fintech Adoption: Peer-to-Peer Lending for Indonesian Msmes

Abstract

The objective of this research is to examine the conduct of Micro, Small, and Medium Enterprises (MSMEs) concerning their embrace of financial technology linked to peer-to-peer lending. Employing a survey approach, this research collected data from MSME owners in Indonesia using purposive sampling techniques. Structural Equation Modeling (SEM) was employed to evaluate the impact of dimensions within the Unified Theory of Acceptance and Use of Technology on the preparedness of MSMEs to adopt the FinTech model. The results revealed that each dimension of the Unified Theory of Acceptance and Use of Technology, encompassing performance expectancy, effort expectancy, facilitating conditions, social influence, hedonic motivation, price value, habit, perceived trust, and perceived risk, plays a crucial role in shaping the behavioral intention of MSMEs toward the adoption of financial technology, specifically peer-to-peer lending. Effort expectancy emerged as the primary factor influencing performance expectancy. Moreover, perceived trust exhibits a close correlation with perceived risk, thereby influencing the behavioral intention of MSMEs. However, perceived risk is the only dimension with a negative impact.