The Effect of Financial Technology on Consumer Spending Behavior in the Digital Economy: JEL Classification: G20, G23, D12, O33, D14

Nurfitra Aresky; Nisa Apriani

doi:10.37899/mjde.v3i3.405

Authors

Nurfitra Aresky Development Economics Study Program, Universitas Muslim Indonesia
Nisa Apriani Development Economics Study Program, Universitas Muslim Indonesia

DOI:

https://doi.org/10.37899/mjde.v3i3.405

Keywords:

Consumer Spending Behavior, Digital Economy, Digital Financial Services, Financial Technology, Financial Technology Adoption

Abstract

transformed the way consumers conduct financial transactions and make purchasing decisions in the digital economy. This study aims to examine the effect of Financial Technology on consumer spending behavior by investigating how digital financial services influence consumers' purchasing activities. A quantitative research approach was employed using a cross-sectional survey of active Financial Technology users. The collected data were analyzed using Structural Equation Modeling to evaluate the measurement model and examine the structural relationship between Financial Technology and consumer spending behavior. The findings indicate that Financial Technology exerts a significant positive influence on consumer spending behavior by improving transaction efficiency, convenience, accessibility, and consumer confidence. The proposed model also demonstrates satisfactory reliability, validity, explanatory power, and predictive capability, confirming its suitability for explaining consumer behavior within digital financial environments. These findings contribute to the growing literature on digital consumer behavior while providing practical insights for policymakers, financial institutions, FinTech providers, and business organizations seeking to promote sustainable digital financial ecosystems and enhance consumer experiences in the digital economy.

References

Anagreh, S., Al-Momani, A. A., Maabreh, H. M. A., Sharairi, J. A., Alrfai, M. M., Haija, A. A. A., ... & Al-Hawary, S. I. S. (2024). Mobile payment and digital financial inclusion: a study in Jordanian banking sector using unified theory of acceptance and use of technology. In Business Analytical Capabilities and Artificial Intelligence-Enabled Analytics: Applications and Challenges in the Digital Era, Volume 1 (pp. 107-124). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-56015-6_8

Bakar, R., Fauziyah, N., & Rahmat, A. (2025). Do consumers perceive impulsive buying and pain of payment: E-commerce transactions using pay later, e-wallet, and cash-on-delivery. Gadjah Mada International Journal of Business, 27(1), 31-59. https://doi.org/10.22146/gamaijb.81568

Baral, A. K. (2026). AI-Driven Digital Ecosystems: Integrating Marketing Intelligence, Supply Chain Analytics, FinTech Innovation, Legal Governance, and Social Dynamics. Journal of Intelligent Decision Making and Information Science, 3(11s), 15-28.

Barkas, P. (2024). Consumer protection and financial innovation: Microeconomic, policy, and behavioral considerations for the digital era. In Finance, growth and democracy: Connections and challenges in Europe and Latin America in the era of permacrisis: Democracy, Finance, and growth (pp. 263-285). Cham: Springer Nature Switzerland.

Ben Belgacem, S., Khatoon, G., Bala, H., & Alzuman, A. (2024). The role of financial technology on the nexus between demographic, Socio-economic, and psychological factors, and the financial literacy gap. Sage Open, 14(2), 21582440241255678. https://doi.org/10.1177/21582440241255678

Celestin, M. (2022). The role of financial planning and budgeting in enhancing corporate profitability and market competitiveness. Brainae Journal of Business, Sciences and Technology, 6(8), 953-965. https://doi.org/10.5281/zenodo.15059282

Danisan, G. (2025). A literature review on how do different FinTech innovations influence consumer behaviour and contribute to financial inclusion in African, Asian, and Latin developing countries (Academic research project, University Canada West)

Deshpande, A. V. (2025, May). Enhancing Cross-Border Payment Efficiency with Stablecoins: Reducing Costs and Settlement Delays. In International Scientific Conference on Business and Economics (pp. 155-170). Cham: Springer Nature Switzerland. https://dx.doi.org/10.2139/ssrn.5337435

Elgammal, N., Moharam, M. M. R., Hassan, D., Tharwat, W. A. K., Abdelhalim, S., & Braimoh, J. (2026). The impact of sustainable logistics service quality in e-shopping applications on consumer purchase decision-making stages: a survey study in the Arab Gulf. Frontiers in Human Dynamics, 8, 1847150. https://doi.org/10.3389/fhumd.2026.1847150

Faraz, N., & Anjum, A. (2025). Spendception: The psychological impact of digital payments on consumer purchase behavior and impulse buying. Behavioral Sciences, 15(3), 387. https://doi.org/10.3390/bs15030387

Farinloye, T., Omotoye, O., Oginni, A., Moharrak, M., & Mogaji, E. (2024). Bridging the digital divide: Consumer engagement with transportation payment apps in emerging economies. Journal of Consumer Behaviour, 23(6), 3011-3029. https://doi.org/10.1002/cb.2388

Ferrari, M. V. (2022). The platformisation of digital payments: The fabrication of consumer interest in the EU FinTech agenda. Computer law & security review, 45, 105687. https://doi.org/10.1016/j.clsr.2022.105687

Hakobjanyan, A. H., Hayrapetyan, D. R., & Mirzoyan, N. E. (2026). Behavioral Finance in Fintech: How Consumer Preferences Influence Digital Buying Decisions. In Artificial Intelligence in Socio-Economic Systems: Novel Human-Centric Solutions and Applications (pp. 239-246). Cham: Springer Nature Switzerland. https://doi.org/10.1007/978-3-032-13565-0_24

Hasan, Z. (2024). The impact of digital financial literacy on consumer protection, investor security, and financial transactions in Indonesia. International Journal of Islamic Economics and Finance Research, 7(2 December), 55-77. https://doi.org/10.53840/ijiefer165

Iheanachor, N., Umukoro, I., & Aranega, A. Y. (2023). Ecosystem emergence in emerging markets: Evidence from the Nigerian digital financial services ecosystem. Technological Forecasting and Social Change, 190, 122426. https://doi.org/10.1016/j.techfore.2023.122426

Jawad, M., Muhammad, K. K., & Latif, F. (2025). Impact of Fintech Innovations on Consumer Trust and Brand Loyalty in Digital Marketing Ecosystems. Research Consortium Archive, 3(4), 1916-1932. https://doi.org/10.0000/

Kantheti, P. R., & Bvuma, S. (2024). Real-time payment systems for boosting economic productivity. International Journal of Scientific Research in Science, Engineering and Technology, 11(4), 308-331. https://doi.org/10.32628/IJSRST24114169

Kowsar, M. M., Islam, S., Mohiuddin, M., & Siddiqui, N. A. (2025). Digitization In Retail Banking: A review of customer engagement and financial product adoption in South Asia. ASRC Procedia: Global Perspectives in Science and Scholarship, 1(01), 42-46. https://doi.org/10.63125/cv50rf30

Mahmood, H., & Miah, M. R. (2022). Data-driven innovation ecosystems: Accelerating economic growth through strategic technology adoption. American Journal of Data Science and Analytics, 3(12), 01-41. https://doi.org/10.63125/rf3w1z65

Malempati, M. (2022). Transforming Payment Ecosystems Through The Synergy Of Artificial Intelligence, Big Data Technologies, And Predictive Financial Modeling. Big Data Technologies, And Predictive Financial Modeling (November 07, 2022). https://dx.doi.org/10.2139/ssrn.5246665

Mavlutova, I., Spilbergs, A., Verdenhofs, A., Natrins, A., Arefjevs, I., & Volkova, T. (2022). Digital transformation as a driver of the financial sector sustainable development: An impact on financial inclusion and operational efficiency. Sustainability, 15(1), 207. https://doi.org/10.3390/su15010207

Minarni, E. (2025). Impact of digital payment systems on financial inclusion and small business growth in developing economies. International Journal of Innovation and Thinking, 2(1), 1-12. https://doi.org/10.71364/ijit.v2i1.6

Pazouki, S., Jamshidi, M. B., Jalali, M., & Tafreshi, A. (2025). The integration of big data in Fintech: review of enhancing financial services through advanced technologies. World Journal of Advanced Research and Reviews, 25(1). https://doi.org/10.30574/wjarr.2025.25.1.0060

Pazouki, S., Jamshidi, M., Jalali, M., & Tafreshi, A. (2025). Artificial intelligence and digital technologies in finance: a comprehensive review. Journal of Economics, Finance & Accounting Studies, 7(2). https://doi.org/10.32996/jefas.2025.7.2.5

Putrevu, J., & Mertzanis, C. (2024). The adoption of digital payments in emerging economies: challenges and policy responses. Digital Policy, Regulation and Governance, 26(5), 476-500. https://doi.org/10.1108/DPRG-06-2023-0077

Raut, R. K., & Kumar, S. (2024). An integrated approach of TAM and TPB with financial literacy and perceived risk for influence on online trading intention. Digital Policy, Regulation and Governance, 26(2), 135-152. https://doi.org/10.1108/DPRG-07-2023-0101

Satpute, S. K., & Shukla, S. (2026). DETERMINANTS AND PATTERNS OF CONSUMER ENGAGEMENT BEHAVIOR IN THE FINTECH INDUSTRY. Transformative Education: A Multidisciplinary Journal (TEMJ) E-ISSN: 3117-8057, 2(5), 692-702.

Shaikh, A. A., Alamoudi, H., Alharthi, M., & Glavee-Geo, R. (2023). Advances in mobile financial services: a review of the literature and future research directions. International Journal of Bank Marketing, 41(1), 1-33. https://doi.org/10.1108/IJBM-06-2021-0230

Singh, P., Khoshaim, L., Nuwisser, B., & Alhassan, I. (2024). How information technology (it) is shaping consumer behavior in the digital age: a systematic review and future research directions. Sustainability, 16(4), 1556. https://doi.org/10.3390/su16041556

Sousa, B. B., & Rodrigues, T. (2027). Optimizing Financial Decision Making for Strategic Planning Success. In Navigating Mergers, Acquisitions, and Organizational Redesign (pp. 299-328). IGI Global Scientific Publishing. https://doi.org/10.4018/979-8-3373-5233-6.ch012

Sunaryo, D., Yanti, N. M., Amrulloh, R., & Lestari, T. (2025). Evaluation of traditional and innovative budget approaches in improving resource allocation efficiency. Advances in Applied Accounting Research, 3(1), 55-68.

Sundar, J. S., Jha, N., Goda, N., Siddiqui, A. T., Ahuja, V., & Sood, P. (2026, June). The impact of IoT on modernizing payment systems and enhancing digital transactions in finance. In AIP Conference Proceedings (Vol. 3426, No. 1, p. 030103). AIP Publishing LLC. https://doi.org/10.1063/5.0328069

Susanto, E., Solikin, I., & Purnomo, B. S. (2022). A review of digital payment adoption in Asia. Advanced International Journal of Business, Entrepreneurship and SMEs, 4(11), 01-15. https://doi.org/10.35631/AIJBES.411001

Theodore Armand, T. P., Kim, H. C., & Kim, J. I. (2024). Digital anti-aging healthcare: an overview of the applications of digital technologies in diet management. Journal of Personalized Medicine, 14(3), 254. https://doi.org/10.3390/jpm14030254

Trianto, B., Nik Azman, N. H., & Masrizal, M. (2025). E-payment adoption and utilization among micro-entrepreneurs: a comparative analysis between Indonesia and Malaysia. Journal of Science and Technology Policy Management, 16(2), 314-343. https://doi.org/10.1108/JSTPM-12-2022-0207

Tulcanaza-Prieto, A. B., Cortez-Ordoñez, A., Rivera, J., & Lee, C. W. (2025). Is digital literacy a moderator variable in the relationship between financial literacy, financial inclusion, and financial well-being in the ecuadorian context. Sustainability, 17(6), 2476. https://doi.org/10.3390/su17062476

Vermani, R., & Arora, N. (2026). From Adoption to Outcomes: Assessing the Impact of Digital Payment Systems on Financial Inclusion and Financial Well-being in India. Advances in Consumer Research, 3(5), 441.

Wan, X., Zeng, J., & Zhang, L. (2025). Predicting online shopping addiction: a decision tree model analysis. Frontiers in Psychology, 15, 1462376. https://doi.org/10.3389/fpsyg.2024.1462376

Widjaja, G. (2025). Comparative study of e-wallet adoption in developed and developing countries: Implications for financial inclusion. International Journal of Economic Literature, 3(5), 564-572.

Yamin, M. A. Y., & Abdalatif, O. A. A. (2024). Examining consumer behavior towards adoption of quick response code mobile payment systems: transforming mobile payment in the fintech industry. Humanities and Social Sciences Communications, 11(1), 1-11. https://doi.org/10.1057/s41599-024-03189-w

Zakariya, A., & Arifin, A. A. (2025). The application of digital payments (QRIS & e-wallet) on the efficiency of MSME transactions. Journal of Finance, Economics and Business, 4(2), 1-19.