Determinants of fintech peer to peer lending usage: evidence from service quality, interest, and trust in Indonesia

Abstract

This study aims to empirically examine the effects of service quality, user interest, and trust on the usage of Financial Technology (Fintech) Peer-to-Peer (P2P) Lending applications in Indonesia. A quantitative descriptive approach was employed, using online survey data collected from 300 active P2P lending users selected through random sampling. The research instrument utilized a five-point Likert scale (1–5) to measure perceptions of service quality, user interest, and trust, with validity and reliability tested using Confirmatory Factor Analysis (CFA) and Cronbach’s Alpha. Data were analyzed through multiple linear regression using SPSS software. The results indicate that service quality, user interest, and trust all have positive and significant effects on the use of P2P lending applications. Among these variables, user interest exerts the most dominant influence, followed by service quality and trust. The Adjusted R² value of 0.761 suggests that the three independent variables collectively explain 76.1% of the variance in application usage behavior. These findings confirm that high-quality digital services, strong user engagement, and a high level of trust are key factors driving sustainable growth and public confidence in Indonesia’s P2P lending industry. This study contributes to fintech adoption research by emphasizing the importance of user experience, security, and technological reliability as primary determinants of digital financial inclusion.