DRIVERS OF FINTECH ADOPTION IN BUSINESS OPERATIONS: EVIDENCE FROM MICRO-ENTREPRENEURS IN VILLUPURAM DISTRICT, TAMIL NADU

Abstract

Financial Technology (FinTech) has transformed the financial services sector through innovations such as digital payments, mobile banking, internet banking and so on. Micro-level entrepreneurs increasingly depend on FinTech services for various activities of their business. However, the adoption of FinTech is influenced by factors such as awareness, perceived benefits, technological infrastructure, security concerns, and business needs. The present study examines the factors influencing the adoption and usage of FinTech services among micro-level entrepreneurs in Villupuram District, Tamil Nadu. The researchers selected a total of 450 entrepreneurs as sample and collected primary data through a well-structured questionnaire. The researchers applied the statistical tools of Cronbach Alpha, Factor Analysis, Descriptive statistics, Mann Whitney U Test and Kruskal Wallis Test. The study found that entrepreneurs have a moderate level of awareness of FinTech services and generally hold a positive perception towards their usage. Among the influencing factors, Convenience and Efficiency Factors emerged as the most important determinants of FinTech adoption, followed by Business and Customer-Oriented Factors and Economic Benefit Factors. The study also found that FinTech services help entrepreneurs improve business operations, financial transactions, and decision-making processes. The study concludes that FinTech plays a vital role in enhancing business efficiency and financial management among micro-level entrepreneurs. Therefore, improving awareness, digital infrastructure, security measures, and user support can further promote FinTech adoption and contribute to the growth and sustainability of micro-enterprises.