Environmental factors and risks affecting the adoption of e-wallets by small and medium-sized enterprises during disasters: The case of COVID-19 pandemic

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Abstract

Financial technology (FinTech) represents an innovative shift in the financial services industry, transforming the business model from traditional to technological, notably through digital wallets (e-wallets). Despite mobile payments becoming increasingly popular during the COVID-19 pandemic, there remains a scarcity of studies on this topic. Small companies faced numerous challenges during the pandemic, including layoffs, absenteeism, reduced sales, financial crises, weakened consumer demand due to closures, movement restrictions, and supply chain disruptions. Consequently, companies are actively seeking effective solutions to mitigate these impacts, such as adopting new FinTech. This research aims to investigate how environmental factors influenced the adoption of e-wallets by small and medium-sized enterprises (SMEs) during the COVID-19 pandemic. The authors will base the conceptual model on the technological, organizational, and environmental (TOE) framework (Tornatzky et al., 1990). The study will employ an electronic survey method to gather data from a community of small companies in Jordan, with a sample size of 600. The study will analyze five environmental factors that affect the decision to adopt e-wallets, including competition pressure, customer, supplier, and government pressure, support from government and technology suppliers, related technologies, and network externalities. This research will contribute to the literature by providing insights into the environmental challenges faced by SMEs during the pandemic and offering a model to explain the key factors that influence the adoption of e-wallets. Furthermore, it will serve as a valuable resource for policymakers in the financial sector to promote the adoption of e-wallets and other FinTech solutions.

Keywords: Environmental Factors, E-wallets, Financial Technology, Adoption

Authors’ individual contribution: Conceptualization — A.R. and I.A.; Methodology — A.R. and I.A.; Validation — A.R., I.A., and A.A.K.; Formal Analysis — I.A.; Investigation — A.R., I.A., and A.A.K.; Writing — Original Draft — A.R., I.A., and A.A.K.; Writing — Review & Editing — A.R.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: C120, G200, G350, O330, Q560, Y2

Received: 31.03.2024
Accepted: 28.10.2024
Published online: 30.10.2024

How to cite this paper: Rababah, A., AlKasasbeh, I., & Khan, A. A. (2024). Environmental factors and risks affecting the adoption of e-wallets by small and medium-sized enterprises during disasters: The case of COVID-19 pandemic. Risk Governance and Control: Financial Markets & Institutions, 14(4), 78–88. https://doi.org/10.22495/rgcv14i4p8