The Impact of FinTech Adoption on SME Performance: The Mediating Roles of Financial Literacy and Transparency

  • Authors

    • Pradeep singh Research Scholar, Mittal School of Business, Lovely Provisional University, Phagwara, Punjab, India
    • Dr. Rupinder Katoch Professor, Mittal School of Business, Lovely Provisional University, Phagwara, Punjab, India
    • Arun Kumar Assistant Professor, School of Management Studies, CGC University, Mohali, Punjab, India
    • Dr. Anuradha Bhandari Associate Professor, Chandigarh Business School of Administration, Landran (Mohali), Punjab, India
    https://doi.org/10.14419/ppty7653

    Received date: September 17, 2025

    Accepted date: October 22, 2025

    Published date: January 23, 2026

  • Fintech; SMEs Performance; Financial Literacy; Transparency; Financial Technology

  • Abstract

    The rapid adoption of financial technologies (FinTech) has transformed the way Small-Medium Enterprises ‎‎(SMEs) manage operations, finances, and stakeholder relationships. However, the mechanisms through which ‎FinTech improves SMEs' performance remain underexplored. This study investigates the impact of fintech ‎adoption on SMEs' performance, with financial literacy and transparency examined as mediating variables. ‎Using data collected from 300 SMEs in India and analyzed through Partial Least Squares Structural Equation ‎Modeling (PLS-SEM), the findings reveal that FinTech adoption has a significant positive effect on SMEs' ‎performance. Moreover, financial literacy and transparency partially mediate this relationship, underscoring their ‎role as complementary enablers. The model explains substantial variance in SMEs' performance, confirming its ‎predictive strength. The study contributes to theoretical literature by combining Fintech adoption, transparency, and ‎financial literacy into a unified performance model by expanding the previous research on the Technology ‎Acceptance Model (TAM) and SMEs' digital adoption. Practically, the findings offer SMEs, policy makers, and ‎financial institutions insight into how to make use of digital tools and strengthen the governance and literacy ‎frameworks. This novel integration, when tested in the Indian context, provides a rich contribution to global ‎discourse on SMEs' competitiveness in the digital economy‎.

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    singh, P., Katoch, D. R. ., Kumar , A. ., & Bhandari, D. A. . (2026). The Impact of FinTech Adoption on SME Performance: The Mediating Roles of Financial Literacy and Transparency. International Journal of Accounting and Economics Studies, 13(1), 380-392. https://doi.org/10.14419/ppty7653