Abstract:   SMEs play a pivotal role in economic growth, employment generation, and innovation, yet their digital transformation remains constrained by limited access to financial services and inadequate financial capabilities, particularly in developing economies. Although financial inclusion and financial literacy have individually been associated with digital financial innovation, limited evidence exists regarding their combined influence on FinTech adoption by SMEs operating in emerging markets. This study investigates the effects of financial inclusion and financial literacy on FinTech adoption among Pakistani SMEs by extending the Technology Acceptance Model to incorporate these organizational enabling factors. A quantitative, cross-sectional research design was employed, and data were collected from 165 SME owners and managers in Karachi using a structured questionnaire. The proposed research model was evaluated using PLS-SEM. The findings reveal that both financial inclusion and financial literacy positively and significantly influence FinTech adoption. Financial literacy emerged as the strongest predictor (β = 0.658, p < 0.001), while financial inclusion also demonstrated a significant positive effect (β = 0.301, p = 0.038). Together, the two constructs explained 43% of the variance in FinTech adoption, indicating moderate explanatory power. The findings extend the Technology Acceptance Model by demonstrating that organizational financial capabilities and access to formal financial services serve as important external antecedents of technology adoption in SMEs.

Keywords:   financial inclusion, financial literacy, fintech, technology acceptance model

Publisher:   ILMA UNIVERSITY

Published:   17 July 2026

Issue:   Issue 1 (2026-07-17) : Volume 22

E-ISSN:   2409-6520

P-ISSN:   2414-8393