Antecedents of Islamic credit card adoption in Pakistan: an empirical study based on the decomposed theory of planned behavior

Abstract

Purpose In the past three decades, the expansion of Islamic banking has been recognized as one of the most significant financial developments across the world, and to enhance their market share in the highly competitive global banking market, these Islamic banking institutions must continue to be innovative. Credit cards are popularized worldwide; developing countries are also intrinsically motivated to adopt this product for performing financial transactions; however, understanding the factors influencing Islamic credit card (ICC) adoption remains limited, and the ICC still needs to attain adequate market share in the banking sector. Therefore, this study aims to investigate the determinants of ICC in Pakistan. Design/methodology/approach For empirical estimation, sample data from 499 respondents, including ICC users and individuals willing to use ICC, is utilized through partial least square structural equation modeling. Findings The results show that attitude, compatibility, perceived behavioral control and religiosity are positive, while complexity negatively affects ICC adoption. In contrast, social influence, trust and satisfaction are insignificant determinants of ICC’s intention to use in Pakistan. Originality/value As a banking service, ICCs are viewed as a new banking product in Pakistan and have limited scope in the literature. Therefore, this study contributes to the existing literature by providing more integrating policy insights to academians and banking managers on ICC service in Pakistan.