From Digital Financial Literacy to E-Wallet Usage Decisions: The Mediating Role of Trust in Fintech

Abstract

Electronic wallets (e-wallets) have expanded access to digital payments in Indonesia, while usage decisions remain linked to users’ ability to evaluate digital financial services and their trust in providers. This study examines the influence of digital financial literacy on e-wallet usage decisions, with trust in fintech as the mediating variable. Data were collected from 75 active e-wallet users in Indonesia who were at least 18 years old and had used an e-wallet for a minimum of three months; respondents were selected through purposive sampling. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. The measurement model met the reported reliability, convergent validity, and discriminant validity criteria. Digital financial literacy had a significant positive effect on trust in fintech, but its direct effect on e-wallet usage decisions was not statistically significant. Trust in fintech had a significant positive effect on e-wallet usage decisions, and the significant indirect path combined with the non-significant direct path indicates indirect-only mediation. The results establish trust in fintech as the mechanism through which digital financial literacy is associated with e-wallet usage decisions in this sample. The study contributes to digital financial behavior research and provides practical direction for fintech providers to strengthen trust alongside user financial capability.