ISLAMIC FINTECH ADOPTION AND HALAL DIGITAL ECONOMY: MEDIATING ROLE OF SHARIA FINANCIAL LITERACY AMONG GENERATION Z
DOI:
https://doi.org/10.59623/vewbjb14Keywords:
Islamic fintech, Sharia financial literacy, Generation Z, halal digital economy, consumer trust, digital religiosity, neuroeconomics, PLS-SEM, IndonesiaAbstract
The rapid proliferation of financial technology (fintech) within Islamic economies has fundamentally reconfigured how Generation Z engages with Sharia-compliant financial services. Despite growing scholarly interest, critical gaps remain regarding the neurological and psychological pathways through which religiosity shapes digital trust in mobile Islamic banking environments, and the precise mediating function of Sharia financial literacy (SFL) in connecting Islamic fintech adoption with the broader halal digital economy. This study investigates the structural relationships among digital religiosity, consumer trust, Islamic fintech adoption, Sharia financial literacy, and halal digital economy participation among Generation Z in Indonesia, integrating neuroeconomic theory with the Unified Theory of Acceptance and Use of Technology (UTAUT2) framework. A cross-sectional survey design was employed, with 387 valid responses collected from Generation Z respondents aged 17–27 in five Indonesian provinces. Partial Least Squares Structural Equation Modeling (PLS-SEM) was applied to test the proposed hypotheses. Reliability, validity, and common method bias were rigorously assessed. Digital religiosity exerted a significant positive effect on consumer trust (β = 0.431, p < 0.001) and Islamic fintech adoption (β = 0.388, p < 0.001). Sharia financial literacy fully mediated the relationship between Islamic fintech adoption and halal digital economy participation (indirect effect = 0.312, 95% CI [0.241, 0.389]). Consumer trust partially mediated the religiosity-adoption nexus. The neuroeconomic lens revealed that reward salience and risk aversion, modulated by religious identity, drive distinct behavioral patterns in digital financial decision-making. Sharia financial literacy is a pivotal mechanism through which Islamic fintech adoption translates into meaningful halal digital economic activity. Policymakers and Islamic fintech developers should co-design literacy-embedded platforms that align algorithmic design with Sharia compliance signals to strengthen consumer trust and accelerate the halal digital economy
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