Financial technology and consumer financial satisfaction

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Abstract

Financial technology (FinTech) quick development had a significant impact on consumers’ financial lives, particularly their level of financial pleasure. The rise of mobile payments has been somewhat accelerated by the advent of FinTech. This study’s goal is to examine how FinTech used in payments affects consumer financial happiness using information from the Organisation for Economic Co-operation and Development (OECD) 2018 and 2021 National Financial Capability Study (NFCS). Given that the consumer financial happiness variable is non-continuous and ordered, the probit regression approach is used to get estimates that are more accurate. The empirical results of this study indicate that FinTech positively contributes to consumer financial satisfaction. In addition, this study selects financial education and financial capability as mediating variables to explore the possible influence channels between the development of mobile payments and the increase in consumer financial satisfaction. The mediating effects analysis demonstrates that FinTech positively affects financial education and financial capability, ultimately increasing consumer financial satisfaction. These findings have implications for consumer policymakers when promoting FinTech to consumers and helping them increase their financial satisfaction through mobile payments.

Keywords: Mobile Payments, Consumer Financial Satisfaction, Financial Capability, Financial Technology, Qatar

Authors’ individual contribution: Conceptualization — A.A. and R.E.; Methodology — A.A. and R.E.; Validation — R.E.; Formal Analysis — A.A. and R.E.; Investigation — A.A.; Resources — A.A. and R.E.; Data Curation — A.A. and R.E.; Writing — Original Draft — A.A. and R.E.; Writing — Review & Editing — A.A. and R.E.; Supervision — A.A.; Project Administration — R.E.

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

JEL Classification: G30, G32, G34, G38, M40, M41, M48

Received: 08.04.2023
Accepted: 26.03.2024
Published online: 29.03.2024

How to cite this paper: AlHares, A., & Elareer, R. (2024). Financial technology and consumer financial satisfaction [Special issue]. Journal of Governance & Regulation, 13(1), 489–498. https://doi.org/10.22495/jgrv13i1siart21