Determinants of fintech adoption in agrarian economy: Study of UTAUT extension model in reference to developing economies

Digitalized agriculture methods and other technical improvements are required to be integrated with finance technology (FinTech) as a critical path and through this integration, trade-offs between resource use and profitability may be lessened, supporting the development of sustainable agricultural models. This research explores the complex interrelationships of factors influencing adoption of fintech by farmers. This study understands the relationship between Social Influence (SI), Performance Expectancy (PE), Convenience (C), Behavioural Intention to adopt agricultural fintech products and services (BIAFPS) and Actual Adoption of agricultural products and services (AAFPS). By utilizing a multifaceted methodology drawn as an extension of Unified Theory of Acceptance and Use of Technology (UTAUT) model by intercepting BIAFPS as mediator, the study explores the intricate relationships and interdependencies among these variables, illuminating the critical function of BIAFPS in this intricate structure. This study intends to improve the understanding of the mechanisms impacting farmer’s perspective by analysing 362 farmers as respondent of 6 different districts of the third largest agriculture cultivation state of India i.e. Uttar Pradesh during April 2023- July 2023. Authors applied stratified sampling technique to collect the data. Smart PLS4 was utilized and SEM and mediation analysis was conducted to study the data. The study concluded that SI, PE, and C influence BIAFPS and AAFPS respectively in a very positive manner and also full mediation of BIAFPS was established among SI, PE, C and AAFPS. The importance of FinTech integration in promoting sustainable farming practices eventually leading to sustainable development is emphasized in this study. Stakeholders may unleash the transformative potential of FinTech and promote a paradigm shift towards environmentally responsible and commercially successful agriculture systems in developing countries by addressing the factors driving adoption.