Exploring the Convergence of Technology Acceptance and Financial Literacy: A Study on Sustainable Credit Card Use in an Emerging Economy

Abstract

This study investigates the integration of technology acceptance and financial literacy in the context of sustainable credit card use in Kuwait. It aims to identify and evaluate the key technological and financial determinants influencing user behavior and acceptance of credit cards as a fintech tool. A survey was conducted with 367 credit card users in Kuwait using the Technology Acceptance Model (TAM), examining variables such as Perceived Usefulness (PU), Perceived Ease of Use (PEU), Perceived Cost (PC), Perceived Risk (PR), and E-Financial Literacy (EFL). Structural Equation Modeling (SEM) was employed to analyze the data. The findings suggest that both technological and financial factors have significant effects on user acceptance. Specifically, PU and PEU significantly influenced users’ attitudes towards credit cards, which in turn shaped their Behavioral Intention (BI) to use them. Financial aspects, notably PC and PR, are crucial in shaping the overall Perceived Value (PV), impacting BI. EFL plays a central role in mediating the effects of technological and financial perceptions on user attitudes and perceived value. The study concludes that the acceptance of credit cards in Kuwait is highly influenced by the interplay between technology acceptance factors and financial literacy. Users’ attitudes towards financial technology are shaped by their perceptions of its usability, usefulness, associated costs, and risks. Enhancing financial literacy, particularly electronic financial literacy, could significantly foster broader acceptance of Fintech tools, such as credit cards.