Client Name

HBL

Faculty Advisor

Dr. Fawad Ahmed

SBS Thought Leadership Areas

Behavioural Studies

SBS Thought Leadership Area Justification

This project is part of the behavioural studies. The study is a psychological and social study of the factors influencing payment behavior among young Pakistanis. The frameworks adopted are behavioral (UTAUT, UTAUT2, Technology Acceptance Model, the Theory of Trust and the Perceived Risk Theory). The methodology of the focus group was aimed at bringing to the fore emotional reactions, dynamics of social influence, habits of getting paid, perceptions of trust and anxiety of public payment failure in daily life.

The central findings are also behavioral – the hybrid payment ecosystem that Gen Z lives in is a behavioral adaptation rather than a preference; the Konnect Paradox is a behavioural disconnect between trust and action; and social network effects, perceived usability and emotional relevance are the real drivers and barriers to adoption. Each of the three suggested marketing strategies is intended to focus on a particular behavioral construct, not just on product characteristics and/or price adjustments: Social Influence, Effort Expectancy, Facilitating Conditions, Hedonic Motivation, and Habit. The Behavioral Studies classification is accurate and appropriate for an alignment with behavioral science, and with IBA's unique capabilities in that domain.

Aligned SDGs

GOAL 9: Industry, Innovation and Infrastructure

Aligned SDGs Justification

SDG 9: Industry, Innovation and Infrastructure is addressed within the project. Continuity and low merchant acceptance were key findings from our research that directly address gaps in infrastructure that hinder the adoption of innovative financial technologies. These infrastructure issues are tackled in our proposed strategies, especially the telecom partnership campaign, as preconditions for wider digital adoption.

NDA

No

Abstract

In Pakistan, the digital payments market has seen significant evolution; it went from 17% of all payments made in 2020 to 75% by September 2024. However, financial inclusion is still around 21% of the adult population, and there is a generational disparity in the use of financial digital wallets: although HBL Konnect ranks first in terms of trust and reliability among the digital wallets surveyed, only 11 out of 117 respondents with a digital payment account use it as their wallet every day. This report discusses that paradox. Commissioned by Habib Bank Limited and conducted as an Experiential Learning Project at the Institute of Business Administration, Karachi, this study examines the psychological, social, and behavioral determinants of digital payment adoption among Gen Z university students in Pakistan, with a primary focus on Karachi. The research employs a mixed-methods design: a structured quantitative survey of approximately 200 respondents and three qualitative focus group discussions, analyzed through the UTAUT and UTAUT2 frameworks, the Technology Acceptance Model, Trust Theory, and Perceived Risk Theory. Key findings indicate that Gen Z lives in a hybrid payment world, where digital wallets are for ease, but cash is for security. The failure of payment is not just a practical matter, but also a social anxiety and public embarrassment. HBL Konnect is losing institutional credibility to be used on a regular basis as it increases with transaction size. It is not a technical or infrastructure problem, it's an issue of emotional resonance and perceived identity. On the basis of these findings, this report proposes a set of targeted, behaviorally grounded marketing strategies aimed at shifting HBL Konnect's perception from a trusted but peripheral platform to an active daily choice for young Pakistanis.

Keywords: digital payments, Gen Z, financial inclusion, HBL Konnect, Raast QR, UTAUT, behavioral adoption, mobile wallets, Pakistan

Document Type

Restricted Access

Document Name for Citation

Experiential Learning Project

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