Factors Affecting Mobile Money Adoption and the Moderating Effect of Trust: Basis Towards the Creation of a Model in the Philippines’ Fintech Industry

Abstract

Mobile money has transformed financial technology by reshaping how individuals’ access and manage their finances. Mobile money networks enable users to transfer, store, and receive cash using a mobile device. The COVID-19 pandemic has heightened the relevance of this technology, facilitating cashless and contactless transactions at a time when social interaction was limited. Despite its advantages, mobile money remains underutilized in the Philippines, where cash continues to be the dominant mode of transaction for many individuals. This study explores the factors influencing the acceptance of mobile money, focusing on trust as a potential moderator in the adoption process among Business Process Outsourcing employees in Metro Manila. A total of 354 respondents were surveyed, with the sample size determined using the Raosoft sample size calculator. The data were analyzed through Structural Equation Modeling in WarpPLS 7.0. The findings indicate that Performance Expectancy, Facilitating Conditions, Hedonic Motivation, Habit, Knowledge of Digital Financial Services, and Awareness of Digital Financial Risks significantly influence Behavioral Intention. Trust amplifies the effects of these predictors on both Behavioral Intention and Use Behavior. Notably, in high-trust environments, users appear less dependent on Performance Expectancy and Knowledge of Digital Financial Services, suggesting that trust itself plays a key role in encouraging adoption. Meanwhile, Effort Expectancy, Social Influence, Price Value, Digital Financial Risk Control, and Knowledge of Redress Procedures did not show a significant impact. These results emphasize the critical role of trust in driving fintech adoption and highlight the need for trust-based strategies to promote wider mobile money use and enhance financial inclusion in the Philippines.