In quest of perceived transaction cost's impact on fintech users' intention: the moderating role of situational factors

Studies show that Pakistan has made significant advancements in financial technology, yet the cost-related barriers preventing clients from using fintech remain unclear. This study analyzes perceived transaction cost (PTC) antecedents influencing intention to use fintech (IU) and examines the moderating role of situational factors. Using data from an online questionnaire (five-point Likert scale) with 276 responses, a PLS-SEM model (SmartPLS 3) tests hypotheses grounded in Transaction Cost Economics, Innovation Diffusion Theory, and Belk’s Theory. Five antecedents influence PTC: dependability (β = −0.223), uncertainty (β = 0.204), asset specificity (β = 0.203), convenience (β = −0.186), and complexity (β = 0.181). PTC is negatively associated with IU (β = −0.280). Situational moderators—pandemic and impending policy (PIP) and environmental and physical surroundings (EPS)—significantly affect the PTC–IU link, with EPS found to fully counteract the negative effect of PTC on IU. The findings highlight that customers struggle to attribute non-use of fintech solely to financial concerns, and underscore the importance of cost management and context in fintech adoption.