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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM64034
Volume:
10 |
5 |
May 2026
Pages:
1-5
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
MASTER OF BUSINESS ADMINISTRATION
RATHINAM TECHNICAL CAMPUS, COIMBATORE-641021
MASTER OF BUSINESS ADMINISTRATION
RATHINAM TECHNICAL CAMPUS, COIMBATORE-641021
The rapid growth of financial technology (FinTech) has transformed the financial ecosystem, especially for Micro, Small, and Medium Enterprises (MSMEs). Peer-to-Peer (P2P) lending platforms and digital payment systems have emerged as important financial solutions that improve accessibility, speed, and convenience in financial transactions. However, the adoption and usage of these technologies are highly influenced by risk perception and trust factors among MSME users. This study examines the role of risk and trust factors influencing P2P lending and digital payment usage among MSMEs. The study focuses on understanding how security, privacy, reliability, transparency, and technological trust affect the adoption behavior of MSMEs. The research adopts a descriptive research design using both primary and secondary data. Data was collected from 150 MSME respondents through a structured questionnaire. Statistical tools such as Percentage Analysis, Correlation Analysis, and Regression Analysis were used for interpretation. The findings reveal that trust, security, and ease of use significantly influence the adoption of digital financial platforms, while perceived financial and cybersecurity risks negatively impact user confidence. The study concludes that strengthening trust mechanisms and reducing perceived risks can enhance digital financial inclusion among MSMEs.
KEYWORDS
The study concludes that trust and risk factors play a significant role in influencing P2P lending and digital payment usage among MSMEs. Trust-related factors such as security, reliability, transparency, and ease of use positively affect digital financial adoption, while perceived risks such as fraud, cybersecurity threats, and privacy concerns negatively impact user confidence. The findings indicate that MSMEs are increasingly adopting digital financial technologies due to convenience and operational efficiency. However, reducing perceived risks and strengthening trust mechanisms are essential for improving long-term adoption and financial inclusion. Therefore, financial institutions, FinTech companies, and policymakers should focus on enhancing security, transparency, and digital awareness to encourage wider usage of P2P lending and digital payment systems among MSMEs.
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Publication Date
5/25/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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