Predicting FinTech innovation adoption in South Africa: the case of cryptocurrency
African Journal of Economic and Management Studies
ISSN: 2040-0705
Article publication date: 21 October 2019
Issue publication date: 9 March 2020
Abstract
Purpose
Financial technology innovation within the developed world is driving financial markets, yet its adoption is lagging among consumers in emerging markets. At the same time, most African economies continue to be at the tail end of global financial innovations adoption. Given lagging consumer adoption of cryptocurrency in South Africa, the purpose of this paper is to apply the theory of planned behaviour (TPB) to predict behavioural intention to adopt cryptocurrency.
Design/methodology/approach
A survey instrument based on the TPB was used to collect quantitative data for predicting adoption from adult distance students at the Mancosa, Cape Town campus. For data analysis, the two-step structural equation modelling approach was used.
Findings
The findings indicate that attitude and perceived behavioural control positively impact the intention to adopt cryptocurrency. Subjective norm showed a negative non-significant influence. Overall, the results of the study show that the model has a good model fit and can be used to explain the theory.
Research limitations/implications
The results of this study may not be generalisable to the wider population as it is only based on a cross-sectional study of a sample of adult students at a single institute in South Africa.
Originality/value
The contribution of this paper is threefold: it is one of a few studies on the behavioural intention to adopt cryptocurrency in South Africa using the TPB model, it contributes towards the use of predictive behavioural economics models in understanding consumer behaviour critical to accelerating the adoption of financial innovations, and the results of the study also inform behaviour change strategies that can be applied by practitioners or policymakers to improve adoption. Studies of this nature may lead to the development of financial innovation in emerging markets through a nuanced understanding of consumer behaviour.
Keywords
Citation
Mazambani, L. and Mutambara, E. (2020), "Predicting FinTech innovation adoption in South Africa: the case of cryptocurrency", African Journal of Economic and Management Studies, Vol. 11 No. 1, pp. 30-50. https://doi.org/10.1108/AJEMS-04-2019-0152
Publisher
:Emerald Publishing Limited
Copyright © 2019, Emerald Publishing Limited