Metaverse Finance: Revolutionizing Islamic Fintech Solutions in Pakistan

Abstract

The rapid advancement of financial technology (fintech) has significantly transformed the Islamic finance sector, necessitating an in-depth examination of key determinants influencing the adoption of Islamic fintech solutions. This study investigates the relationships between the regulatory environment, technological infrastructure, and customer trust in shaping Islamic fintech solution. A survey-based approach was employed to collect data, and hypotheses were tested to assess the impact of these factors. A total of 700 questionnaires were distributed, and 391 valid responses were returned. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to analyze the data. The findings confirm that the regulatory environment and technological infrastructure significantly influence Islamic fintech solutions. Additionally, customer trust plays a crucial role in fostering adoption and acts as a moderator between the regulatory environment and Islamic fintech solutions. However, the study finds that customer trust does not moderate the relationship between technological infrastructure and Islamic fintech adoption, suggesting that technological advancements may inherently be perceived as reliable and secure by users. The study provides several theoretical and practical implications. It contributes to the existing literature by reinforcing the importance of regulatory frameworks and technological advancements in fintech adoption within the Islamic finance sector. Practically, the findings highlight the need for policymakers to establish clear and transparent regulations to enhance consumer confidence. Fintech companies should focus on technological innovation while maintaining compliance with Shariah principles to increase customer trust and market penetration.