H. R. Laskar

As financial technologies rapidly expand in developing countries like India, digital financial literacy plays a critical role in shaping how individuals interact with innovative financial services. This study evaluates the influence of financial literacy, digital literacy, and digital financial literacy on the adoption of Peer-to-Peer lending platforms. It also explores the distinct roles and interrelationships among these forms of literacy within the Peer-to-Peer lending ecosystem. Data were collected from 430 participants, exceeding the minimum sample size requirement calculated through G*Power. Participants, comprising borrowers and lenders, actively interacted on Peer-to-Peer lending platforms in cities like Delhi, Mumbai, Hyderabad, Bangalore, and Chennai, ensuring a holistic understanding of the ecosystem. Borrowers are individuals seeking financial assistance, while lenders provide funds, often in exchange for interest-based returns. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study reveals that while financial literacy and digital literacy significantly contribute to digital financial literacy, they do not directly impact the behavioral intention to adopt Peer-to-Peer lending platforms. Instead, digital financial literacy directly influences adoption intention, highlighting the importance of integrated literacy over isolated skills. The findings underscore the high proficiency levels of existing users in financial, digital, and digital financial literacy, reflecting the platforms’ appeal to skilled individuals. Expanding access to less proficient populations remains crucial. Moreover, platform managers can capitalize on user expertise by introducing advanced features tailored to sophisticated needs, thereby enhancing satisfaction and the overall user experience. These insights emphasize digital financial literacy’s pivotal role in fostering broader Peer-to-Peer lending adoption.

Acknowledgments
The first author thanks the Ministry of Education, Government of India, for providing financial assistance (fellowship) during her Ph.D.