Factors That Influence the Intention to Use Alternative Finance Fintech: An Application of Structural Equation Model to The Case of Small Service Sector Businesses in Metropolitan Lima

Abstract

This paper applies structural equation modelling (SEM) to investigate the determinants of the intention to adopt alternative financing mechanisms, with a specific focus on Micro, Small, and Medium-sized Enterprises (MSMEs). The central objective is to identify and measure the latent variables that explain MSMEs’ intention to use Fintech-based financing platforms. Drawing on the Technology Acceptance Model (TAM), the study highlights the relevance of perceived usefulness, defined as the degree to which firms value alternative financial technologies as effective tools for investment and business growth. The empirical findings suggest that the adoption of Fintech financing is primarily driven by MSMEs’ recognition of its potential to enhance liquidity, expand access to credit, and overcome structural barriers to financing. By linking behavioural intention with technological acceptance in the financial domain, this paper contributes to a better understanding of Fintech adoption in developing economies and offers insights for policymakers and financial institutions seeking to foster greater financial inclusion.