A Cross-Country Analysis of Fintech Adoption and Cultural Dimensions Integrating Hofstede’s and GLOBE Frameworks

Abstract

This study examines how cultural traits influence fintech adoption, focusing on digital payment transactions, the largest segment of global fintech activity. Using Hofstede’s and GLOBE cultural frameworks, it addresses a gap in the literature by examining how national cultural dimensions shape adoption patterns across countries, with particular attention to differences between developed and developing economies. Drawing on a global panel dataset for 91 countries, the study employs pooled Ordinary Least Squares regression for baseline full-sample estimations and interaction models with development status to capture heterogeneous cultural effects on fintech adoption. The findings indicate that cultural traits play a significant role in shaping fintech adoption. Long-term orientation is positively associated with adoption globally, with the effect being considerably stronger in developed economies. In contrast, power distance and individualism promoted fintech adoption in developing countries but exerted an insignificant negative influence on fintech adoption in developed economies. This study advances fintech adoption research by integrating Hofstede’s and GLOBE cultural frameworks. This study explicitly captures cultural heterogeneity across economic contexts and moves beyond conventional analyses based on a single cultural framework or using culture only as a moderating factor. Policymakers and financial institutions should tailor fintech strategies to cultural profiles, emphasizing long-term benefits in developed economies and leveraging hierarchical and institutional trust in developing economies, while promoting inclusiveness in low-power-distance settings.