The findings are important because SMEs frequently face difficulties accessing conventional financing. Digital payments, mobile banking, peer-to-peer lending, crowdfunding, and cloud-based accounting offer alternative ways for businesses to manage transactions and seek financial support. However, the availability of these services does not automatically guarantee that business owners will use them.
Why FinTech Adoption Matters for Small Businesses
SMEs play a major role in employment, economic activity, and entrepreneurship, particularly in developing economies. Despite their contribution, many small businesses struggle to obtain loans because they lack sufficient collateral, have limited financial records, or are considered high-risk borrowers by traditional financial institutions.
FinTech offers potential solutions by connecting financial services with digital infrastructure, data analytics, and automated processes. Digital platforms can simplify transactions, support financial recordkeeping, and help lenders assess businesses using information beyond conventional credit documentation.
For example, a small retailer can use a digital payment application to receive customer payments, monitor transactions, and maintain records of business income. A business seeking additional capital may also consider digital lending or crowdfunding platforms as alternatives to traditional bank financing.
Nevertheless, business owners must be willing and able to adopt these technologies. Complicated applications, concerns about fraud, unclear transaction fees, limited digital skills, and uncertainty about regulatory protection can prevent businesses from using digital financial services.
Choirinnida and Indi address this challenge by examining evidence from previous studies to identify the factors most consistently associated with FinTech adoption among SMEs.
How the Researchers Examined FinTech Adoption
The researchers conducted a systematic literature review using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA 2020) guidelines. This approach organizes the search, screening, and analysis of published research through a documented process.
The review covered eight academic search platforms and databases: Google Scholar, ScienceDirect, Emerald, SpringerLink, MDPI, Taylor & Francis, Wiley, and SSRN. The researchers searched for relevant publications from 2020 through 2026 using combinations of terms related to financial technology, technology adoption, and small and medium-sized enterprises.
The initial search identified 133 records. After eight duplicate records were removed, 125 records underwent title and abstract screening. Researchers excluded 37 records that did not meet the screening criteria, leaving 88 articles for the final review.
The evidence base comprised 74 primary empirical studies and 14 review, bibliometric, or conceptual publications used as background material. The empirical studies examined different countries, business settings, financial technologies, and explanations of adoption.
The researchers also examined seven studies in greater depth, including their statistical results. The remaining 67 primary studies were assessed mainly through information available in their titles, keywords, and abstracts. This distinction matters because frequently mentioned factors across articles are not necessarily statistically significant in every individual study.
Five Factors Associated With FinTech Adoption
The review identifies several recurring factors that help explain why SMEs adopt or resist financial technology.
1. Ease of use
Ease of use was one of the most frequently reported factors, appearing in nine of the 74 primary studies. Business owners are more likely to consider digital financial services when the applications are straightforward, transactions are easy to complete, and instructions are understandable.
For small businesses with limited administrative resources, a complicated digital platform can create additional work instead of solving existing problems. Simple registration, clear navigation, and accessible customer support may therefore encourage adoption.
2. Perceived usefulness
Perceived usefulness also appeared in nine primary studies. Business owners need to understand how a technology can help their operations, whether through faster payments, improved financial records, easier access to financing, or more efficient business management.
The presence of digital features alone is insufficient if business owners cannot see a practical advantage in using them.
3. Trust
Trust appeared in eight studies and emerged as one of the most consistent positive predictors in the seven studies examined in depth. Business owners need confidence that their money, transaction information, and financial records will be handled appropriately.
Security measures, transparent fees, reliable transaction processing, and responsive customer service can help strengthen that confidence. FinTech providers must address concerns about fraud and misuse of information rather than focusing exclusively on technological innovation.
4. Government and regulatory support
Government or regulatory support appeared in six studies. Public policies, clear regulations, and assistance programs can influence whether small businesses consider digital financial services accessible and reliable.
The review also discusses evidence that different groups of business owners may respond to different incentives. Government assistance and regulatory support can be particularly relevant to owners with lower or middle incomes, while higher-income owners may place greater emphasis on ease of use and risk management.
5. Financial and digital literacy
Financial or digital literacy appeared in five studies. Business owners need sufficient knowledge to understand digital transactions, evaluate financial products, recognize potential risks, and use online services effectively.
Improving these skills can help SMEs make informed decisions about digital payments, lending platforms, and other financial technologies.
Organizational readiness is another important consideration. SMEs need appropriate resources, management support, and the capacity to integrate digital services into their daily operations.
Technology Acceptance Model Leads the Theoretical Approaches
The review also examines the theories researchers use to explain FinTech adoption.
The Technology Acceptance Model (TAM) was the most frequently used named framework, appearing in 16 of the 74 primary studies, or approximately 22%. TAM explains technology adoption through perceptions such as usefulness and ease of use.
The Technology-Organization-Environment (TOE) framework ranked second among named approaches, appearing in eight studies, or approximately 11%. Unlike models that emphasize individual perceptions, TOE considers technological characteristics, organizational conditions, and the external business environment.
The Unified Theory of Acceptance and Use of Technology (UTAUT and UTAUT2) appeared in six studies, while Diffusion of Innovation theory appeared in four. Seven studies combined multiple theoretical frameworks.
Notably, 27 studies, representing approximately 36% of the primary studies, did not test a single named technology-acceptance theory. Instead, they developed their own models to examine adoption factors.
This pattern suggests that researchers need approaches that reflect the organizational realities of SMEs. Decisions about adopting FinTech involve more than whether an application seems useful to an individual. They may also depend on management priorities, available resources, perceived risks, and the conditions in which a business operates.
Implications for FinTech Providers, Governments, and Entrepreneurs
The findings offer practical lessons for three groups.
For FinTech providers, the results suggest that improving usability and building trust should be central priorities. Clear instructions, transparent pricing, reliable security measures, and accessible customer assistance may be more valuable to prospective SME users than adding features that complicate an application.
For governments and regulators, the findings highlight the importance of financial inclusion policies that account for differences in business resources and digital capabilities. Financial education, digital training, regulatory clarity, and appropriately designed assistance programs can help reduce barriers to adoption.
For SME owners and managers, adopting FinTech should involve assessing whether a service meets business needs, understanding its costs and risks, and ensuring that employees can use it effectively. Digital financial services should be evaluated as business tools rather than adopted simply because they are widely available.
The geographical distribution of the reviewed studies also deserves attention. Southeast Asia accounted for 31 studies, or approximately 41% of the primary empirical evidence, while Sub-Saharan Africa accounted for 17 studies, or approximately 23%. South Asia contributed another 12 studies.
These figures show that much of the available evidence comes from emerging economies. The findings should therefore be applied cautiously to high-income countries and regions that were less represented in the review.
Limitations and Directions for Future Research
Although the review provides a broad overview, its findings have limitations. Only seven primary studies received detailed full-text coding, while the other 67 were assessed primarily through titles, keywords, and abstracts. Consequently, the frequency of a factor's appearance should not be interpreted as proof that it significantly influences adoption in every context.
The researchers also note that their search approach did not provide a standardized bibliographic export suitable for citation-count analysis and VOSviewer mapping. Future reviews could use more structured database searches, automated duplicate removal, and full-text analysis of a larger number of studies.
Further research could also examine underrepresented regions and compare how factors such as income, business size, digital literacy, and regulatory conditions shape adoption decisions.
About the Authors
Irma Tsuraya Choirinnida is a co-author of the review and is affiliated with the Faculty of Economics and Business, Universitas Diponegoro, Indonesia.
Rifka Indi is the corresponding author and is also affiliated with the Faculty of Economics and Business, Universitas Diponegoro. Correspondence regarding the article can be directed to rifkaindi@lecturer.undip.ac.id.
The supplied article information does not specify the authors' academic degrees or detailed individual research specializations; these details should be verified through official university profiles before being added to their biographies.
Research Source
Article title: A Systematic Literature Review of FinTech Adoption in SMEs
Authors: Irma Tsuraya Choirinnida and Rifka Indi
Affiliation: Faculty of Economics and Business, Universitas Diponegoro, Indonesia
Journal: International Journal of Management and Business Intelligence (IJMBI)
Publication year: 2026
DOI: https://doi.org/10.59890/ijmbi.v4i5.56
Journal website: https://journalijmbi.my.id/index.php/ijmbi
ISSN-E: 3025-5589
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