ABSTRACT

This study was conducted to explore the determining factors, usage patterns, and user perceptions of mobile banking adoption among street hawkers and small vendors in Islamabad, Pakistan. The research explains the hierarchical interplay of social, economic, and technological factors shaping mobile banking adoption behaviours in the informal urban market of Islamabad. The study implies a qualitative methodological approach based on Interpretive Structural Modelling (ISM) and is framed by the Unified Theory of Acceptance and Use of Technology (UTAUT). Data was collected through in-depth interviews with small vendors and field observations. Findings reveal that mobile banking adoption pattern is a multi-staged process initiated by foundational driver awareness, followed by enabling factors such as accessibility, customer demand, social influence and trust in service provision, and sustained by outcome-level factors such as ease of use and financial literacy of users. Insights from the study suggest that vendors largely use mobile banking platforms for business transactions, while usage of these mobile banking platforms for savings, investments and other services is constrained by low financial literacy and digital infrastructural barriers. Findings validate the core constructs of the unified theory of acceptance and use of technology (UTAUT) within interpretive structural modelling (ISM) hierarchy, emphasising the need for practical interventions focusing on user awareness campaigns, digital infrastructural enhancements, user-friendly app design and enhancement of digital literacy initiatives to foster sustained financial technology (fintech) adoption in informal sectors. This research contributes theoretical insights and practical implications for policymakers, fintech providers and researchers aiming to boost digital financial inclusion in Pakistan.