DIGITAL WALLET ADOPTION AMONG UNBANKED RICKSHAW DRIVERS: A UTAUT2-TRUST EXTENSION IN LAHORE

Abstract

This research explores the determinants of unbanked rickshaw drivers to adopt digital wallets in Lahore, Pakistan. Drawing on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) model and extending with trust as a normative construct, this study explores how social influence, performance expectancy, effort expectancy, hedonic motivation, price value, habit and trust account for digital wallet adoption intention among this underbanked group. We surveyed for 450 rickshaw drivers in Lahore, a large urban metropolis in Pakistan where daily average traffic is very high, popular choices for passengers are rickshaws and an informal economy flourishes. Based on the analysis of SEM, this research shows that performance expectancy, habit and trust were significant factors in digital wallet adoption. Trust to be a significant mediator in relationship between social influence and adoption intention. This study adds to the literature and growing body of work on digital payment adoption among emerging economy populations such as broader financially excluded segments. The results have crucial managerial implications for mobile payment service providers to expand service adoption among the unbanked, and contribute to policy debates on digital financial inclusion.

Keywords: Digital wallet adoption, UTAUT2, Trust, Rickshaw drivers, Unbanked, Financial inclusion, Lahore