DETERMINANTS OF DIGITAL WALLET ADOPTION AMONG GENERATION Z: THE ROLE OF DIGITAL SELF-EFFICACY, TRUST, AND ATTITUDE

Abstract

Digital wallets are offering secure, fast, and convenient alternatives to cash transactions and reshaping the financial world. Despite their growing presence in emerging economies, adoption among Generation Z in Pakistan remains inconsistent due to psychological readiness and trust-related challenges. This study investigates the role of digital self-efficacy and trust in shaping behavioral intention to adopt e-wallets, with attitude serving as a mediating variable. By using a structured Likert-scale questionnaire, a quantitative, cross-sectional survey was conducted among university students in Rawalpindi–Islamabad. Data were analyzed through SmartPLS, employing reliability, validity, and structural equation modeling. Results reveal that digital self-efficacy and trust significantly enhance positive attitudes, which in turn strongly predict behavioral intention to adopt e-wallets. The findings contribute to technology adoption literature by integrating psychological constructs into existing acceptance models, while offering practical insights for fintech providers and policymakers. Strengthening trust mechanisms, improving digital literacy, and fostering favorable user attitudes are recommended to accelerate adoption. This study highlights the role and value of psychological and attitudinal factors in digital finance adoption, providing both theoretical and practical implications for future research and policy development.