Income-driven fintech adoption and its impact on innovation: evidence from China

Zoha Khan, Farah Naz, Muhammad Ishfaq Ahmad, Enrico Battisti

Research output: Contribution to journalArticlepeer-review

Abstract

Purpose
This study explored the key factors affecting financial technology (fintech) adoption through socioeconomic contexts across different income groups. It offers insights into the role of fintech in fostering Chinese Small and Medium-Sized Enterprises’ (SMEs’) growth and adaptability.

Design/methodology/approach
Data were collected through surveys administered to SME owners and decision-makers in China. The respondents assessed various statements regarding perceived usefulness, ease of use, attitudes towards fintech, trust in fintech systems, associated risks, financial knowledge and government support for fintech. A qualitative comparative analysis (QCA) was employed to assess the configurational forms of the multiple factors involved in fintech adoption.

Findings
This study revealed that perceived usefulness, financial knowledge, trust and risk perception are crucial factors for fintech adoption across all income groups. For lower-to-mid-income earners, government assistance and regulatory support were essential, whereas higher-income groups prioritized ease of use and advanced risk management.

Research limitations/implications
These observations are significant for the authorities and the fintech providers that are looking for ways to fintech the integration of the Chinese SMEs. The authors advise that unique strategies are necessary to tackle the special needs of different user segments and thus to stimulate the sector’s innovation.

Originality/value
This study addresses fintech adoption among Chinese SMEs by conducting a comparative analysis across multiple income groups in a previously unexplored area. Using configuration analysis, we identified the distinct socioeconomic factors that enable or hinder fintech adoption in each group, providing tailored strategies that support innovation and growth across diverse income segments in China’s SME sector.
Original languageEnglish
Number of pages22
JournalBusiness Process Management Journal
DOIs
Publication statusPublished - 24 Jun 2025

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