The rapid growth of P2P lending applications in Indonesia is accompanied by a surge in reported criminal violations. This study addresses the paradoxical situation where users continue to utilize these platforms despite acknowledging the significant risks. Previous research indicates a negative correlation between perceived risk and financial technology usage. However, this contradicts the observed growth of P2P lending. This study focuses on the individual-level decision-making process, specifically exploring the role of the "desirability of control"—the inherent tendency of individuals to seek control over their environment—as a potential explanatory factor for this behavior. The research question is: Does the desirability of control moderate the effect of perceived risk on P2P lending usage intention? The hypotheses are: H1: Perceived risk negatively affects P2P lending usage intention; H2: Desirability of control negatively moderates the effect of perceived risk on P2P lending usage intention. The study contributes to a limited body of research on group-level fintech user behavior and provides insights for P2P lenders and policymakers to enhance consumer protection and business practices.

Existing research demonstrates a negative relationship between perceived risk and the intention to engage in risky behaviors, including the use of financial technology. However, the flourishing P2P lending market in Indonesia challenges this established finding. Risk motivation theory (RMT) suggests that the "desirability of control"—an individual's preference for control over their environment and experiences—plays a crucial role in risk-taking behavior. Individuals with high desirability of control actively seek situations offering more control, potentially overlooking objective risks. Conversely, those with low desirability of control avoid risky situations, even if they promise better outcomes. This literature review establishes the theoretical foundation for examining the moderating role of desirability of control on the relationship between perceived risk and P2P lending usage intention.

This study employed a quantitative research design using a survey questionnaire to collect data from 211 Indonesian borrowers who currently or previously used P2P lending services. Convenience sampling was used due to limitations in accessing detailed borrower data from P2P lending providers. The questionnaire included three scales: P2P lending usage intention (3 items, semantic differential scale, Cronbach's alpha = 0.921), perceived risk (3 items, 7-point Likert scale, Cronbach's alpha = 0.792), and desirability of control (3 items, 7-point Likert scale, Cronbach's alpha = 0.940). Confirmatory factor analysis (CFA) confirmed the validity and reliability of the scales. Data analysis involved structural equation modeling (SEM) using Amos 23, employing the maximum likelihood (ML) estimation method. Multivariate normality was tested; however, due to non-normality, a Bollen-Stine bootstrap procedure was implemented to adjust the goodness-of-fit test results. The interaction method was used to assess the moderating effect of desirability of control.

Descriptive statistics revealed that most participants had medium desirability of control scores, perceived P2P lending as high-risk, and showed low intention to use P2P lending. The multivariate normality test showed that the assumption of multivariate normality was not supported. The SEM analysis revealed that perceived risk significantly and negatively influenced P2P lending usage intention (estimate = −0.302; *p* < 0.001), supporting H1. The interaction term between perceived risk and desirability of control also significantly and negatively affected usage intention (estimate = −0.010; *p* < 0.001), supporting H2. This indicates that desirability of control weakens the negative effect of perceived risk. The goodness-of-fit test initially showed a poor fit (p=0.000); however, after the Bollen-Stine bootstrap procedure (p=0.025), the model demonstrated an acceptable fit, indicating that the model adequately represents the data despite the non-normality. The findings indicate that individuals with a high desirability of control are more likely to ignore perceived risks associated with P2P lending, while individuals with low desirability of control are more risk-averse.

The findings support the hypothesis that the desirability of control moderates the relationship between perceived risk and P2P lending usage intention. This highlights the importance of individual personality traits in understanding risk-taking behaviors within the context of financial technology. Borrowers with high desirability of control prioritize achieving their financial goals (e.g., obtaining immediate funds) over perceived risks, even in the face of reported criminal activities. This suggests that cognitive-based consumer education alone may be insufficient to deter high-desirability-of-control borrowers. The results underscore the need for stricter regulations and more robust consumer protection measures in the Indonesian P2P lending market.

This study demonstrates that desirability of control significantly moderates the relationship between perceived risk and the intention to use P2P lending in Indonesia. High desirability of control leads borrowers to overlook risks, while low desirability of control promotes risk aversion. The findings emphasize the need for stricter lending procedures and government oversight to protect consumers from potential harm. Future research could explore other individual and contextual factors influencing P2P lending usage and conduct a more comprehensive study using random sampling techniques.

The study's primary limitation is the use of convenience sampling, which may not represent the broader population of Indonesian P2P lending borrowers and may have affected the data's normality. Future research should utilize more robust sampling methods, such as random sampling, in collaboration with P2P lending platforms or regulatory bodies to address this limitation and enhance the generalizability of the findings. Furthermore, investigating the moderating effect of other personality traits or contextual factors might enrich the understanding of Indonesian borrowers' risk-taking behaviors.