Trusting Innovation: How Sharia, Transparency, and Security Drive Islamic Fintech Adoption

DOI

10.2991/978-94-6239-624-1_35How to use a DOI?

Keywords

Islamic Fintech; Trust; Sharia Compliance; Perceived Value; Adoption Intention; Financial Innovation

Abstract

This study examines the determinants of Islamic fintech adoption intention in Indonesia by incorporating three main antecedents: sharia compliance, transparency, and security as well as the mediating roles of trust and perceived value. Using a survey method, data from 214 respondents were analyzed through SEM-PLS. The empirical results indicate that sharia compliance has a positive and significant effect on trust (H₁) but does not influence perceived value (H₂), suggesting that sharia compliance primarily functions as a source of legitimacy and ethical assurance rather than as a contributor to functional value. Transparency is found to have a positive effect on both trust (H₃) and perceived value (H₄), confirming that openness in information regarding contracts, fees, and data management forms the foundation of user trust and benefit perception. Meanwhile, security does not affect trust (H₅), possibly due to a ceiling effect in users’ security perceptions, but it exerts a strong positive effect on perceived value (H₆) by reducing perceived risk. Furthermore, perceived value significantly influences trust (H₇) and adoption intention (H₉), positioning it as a key driver of Islamic fintech usage. In contrast, trust does not have a direct effect on adoption intention (H₈), indicating that usage decisions are driven more by functional benefits than by affective factors. Overall, this study underscores that increasing Islamic fintech adoption cannot rely solely on sharia legitimacy but must focus on creating tangible value through transparency, easily understood security features, and efficient user experience. Enhancing perceived value emerges as the most effective strategy to encourage adoption; therefore, service providers should design offerings that reduce risk and enhance utility. Regulators are also encouraged to strengthen sharia based transparency and disclosure standards to reinforce public trust and accelerate digital Islamic financial inclusion.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nurfadilah Nurfadilah
AU  - Nur Ariani Aqidah
AU  - Hamida Hamida
AU  - Muh Ginanjar
AU  - Sukran Sukran
PY  - 2026
DA  - 2026/04/06
TI  - Trusting Innovation: How Sharia, Transparency, and Security Drive Islamic Fintech Adoption
BT  - Proceedings of the International Conference on Sustainable Economics and Finance in the Digital Business Transformation (INCOSEF 2025)
PB  - Atlantis Press
SP  - 464
EP  - 485
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-624-1_35
DO  - 10.2991/978-94-6239-624-1_35
ID  - Nurfadilah2026
ER  -