Comparative Analysis of Users and Non-Users on Digital Finance: A Study of Perceived Risks and Benefits

Abstract

Purpose: This study examines the influence of perceived risks and perceived benefits on attitudes towards digital finance and their subsequent impact on adoption intentions in Pakistan, comparing users and non-users.

Design/methodology/approach: A cross-sectional survey was conducted with 382 respondents split evenly between users and non-users of digital finance. Data were analyzed using structural equation modeling (SEM) to test hypothesized relationships derived from the perceived risk–benefit framework, incorporating five risk dimensions (security, financial, performance, psychological, and legal) and four benefit dimensions (economic benefit, convenience, seamless transaction, and perceived enjoyment). Multi-group analysis was used to assess differences between users and non-users.

Findings: Results reveal distinct patterns between users and non-users. For users, economic benefit, convenience, seamless transactions, and perceived enjoyment significantly enhanced attitudes, while security, financial, and psychological risks reduced them. For non-users, all five risk factors (security, financial, performance, psychological, and legal) negatively affected attitudes, whereas only economic benefit and convenience showed positive effects. Attitude strongly predicted adoption intention for both groups.

Originality/value: This study addresses contextual and empirical gaps by simultaneously examining an extended set of risk and benefit factors, incorporating psychological and legal risks, and integrating perceived enjoyment variables seldom studied in developing economies. By comparing users and non-users, the study provides actionable insights for policymakers, financial institutions, and technology developers aiming to enhance digital finance adoption in emerging markets.