From Banking to Bytes: Investigating the relationship between Gen Z’s digital financial literacy and adoption of digital wallets in Pakistan

Abstract/Description

From a cash-based economy to a cashless society, recent advancements in financial technology (Fintech) are increasingly changing the way individuals access and use financial services. With the advent of digital financial services such as digital wallets or E wallets, individuals no longer need to carry cash to make transactions; instead, they can carry out an array of financial services, from a single app in their smartphone. Given the ease and convenience that digital wallets extend, it comes as no surprise that this is one of the most famous digital financial services, globally and locally. In Pakistan, digital financial services, particularly digital wallets have witnessed an upward surge in the last 7 years. Given this unprecedented popularity of digital wallets amongst young users it is important for us to understand Gen Z’s level of digital financial literacy and its relationship with adoption and usage of digital wallets. It is in light of this, that the present research is situated. To explore the relationship between Gen Z’s digital financial literacy and adoption of digital wallets, this study employs an exploratory correlational mixed methods approach. The current study is undertaken in two phases. In the first phase, the dominant methodology is a quantitative survey which are filled by Gen Z individuals living in Pakistan. This is complemented by a less dominant qualitative method, which include semi-structured interviews with Gen Z participants; this represents the second phase of the study. Based on 135 survey responses and 8 semi-structured interviews, it was revealed that there exists a moderate positive relationship between digital financial literacy and adoption of digital wallets. The results also highlighted that factors such an individual’s education and income play a mediating role between the two variables. These findings not only add to a nascent area of research but also carry important implications for policy makers, Governments, educators, and business owners, alike.

Keywords

Digital Financial Literacy, Digital Wallets, Gen Z, Cashless Economy, Pakistan

Track

Finance

Session Number/Theme

Finance - Session II

Session Chair

Dr. Noureen Ayaz

Start Date/Time

14-6-2025 10:55 AM

End Date/Time

14-6-2025 12:35 PM

Location

MCC 12 Ground Floor, AMAN CED Building

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Jun 14th, 10:55 AM Jun 14th, 12:35 PM

From Banking to Bytes: Investigating the relationship between Gen Z’s digital financial literacy and adoption of digital wallets in Pakistan

MCC 12 Ground Floor, AMAN CED Building

From a cash-based economy to a cashless society, recent advancements in financial technology (Fintech) are increasingly changing the way individuals access and use financial services. With the advent of digital financial services such as digital wallets or E wallets, individuals no longer need to carry cash to make transactions; instead, they can carry out an array of financial services, from a single app in their smartphone. Given the ease and convenience that digital wallets extend, it comes as no surprise that this is one of the most famous digital financial services, globally and locally. In Pakistan, digital financial services, particularly digital wallets have witnessed an upward surge in the last 7 years. Given this unprecedented popularity of digital wallets amongst young users it is important for us to understand Gen Z’s level of digital financial literacy and its relationship with adoption and usage of digital wallets. It is in light of this, that the present research is situated. To explore the relationship between Gen Z’s digital financial literacy and adoption of digital wallets, this study employs an exploratory correlational mixed methods approach. The current study is undertaken in two phases. In the first phase, the dominant methodology is a quantitative survey which are filled by Gen Z individuals living in Pakistan. This is complemented by a less dominant qualitative method, which include semi-structured interviews with Gen Z participants; this represents the second phase of the study. Based on 135 survey responses and 8 semi-structured interviews, it was revealed that there exists a moderate positive relationship between digital financial literacy and adoption of digital wallets. The results also highlighted that factors such an individual’s education and income play a mediating role between the two variables. These findings not only add to a nascent area of research but also carry important implications for policy makers, Governments, educators, and business owners, alike.