Does Fintech Availability Moderate the Relationship Between Perceived Financial Risk and Online Purchase? An Experimental Support.

Abstract

This present study aimed to study the mediating role of online purchase intention, moderating role of Fintech availability on the relationship between perceived financial risk and online purchase. Firstly, it was hypothesized that there will be a significant relationship between perceived financial risk and online potential buyer Purchase Intention. Secondly, it was also hypothesized that there will be a significant relationship between perceived financial risk & online purchase behavior. Thirdly, it was hypothesized that there will be a significant relationship between Online Purchase Intention and Online Purchase. Moreover, it was hypothesized that there will be a moderating effect of Fintech availability on the relationship between perceived financial risk and online purchase. Online survey method was used for the purpose of data collection, and quantitative analysis was used to test the hypotheses. A sample of 380 participants including both males and females who have experience of online shopping once in their lifetime were selected. Data was quantitatively analyzed through SPSS (Statistical Package for Social Sciences) and Warp. PLS 6.0. Results showed moderating effect of Fintech availability on the relationship between perceived financial risk and online purchase. Moreover, perceived financial risk has a significant relationship with online purchase intention and online purchase. Relationship between online purchase intention and online purchase behavior was also significant that shows online purchase intention leads to online purchasing behavior. In addition to this, scenario based quasi-experimental design has been also used to investigate online purchase behavior of Pakistani’s and which payment method they prefer to purchase online. Findings showed that Pakistani people prefer Fintech to perform online transactions. This study enables online merchants to understand online buyer behavior in e-commerce activities. Findings of this research can also help online merchants to formulate strategies that can reduce risks associated with online shopping, especially perceived financial risk that stops buyer to transact online. This study also has a theoretical implication to advance the theory of planned behavior. Moreover, findings also highlight viii the policy implication to boost economic growth by enabling sustainable ecommerce sector, where every transaction and ecommerce business should be documented.