DeFi Adoption in India: Intersections of Technology Use, Social Influence, and Demographic Factors

Abstract

Decentralized Finance (DeFi) represents a transformative shift in the financial landscape by using blockchain technology to enable peer-to-peer services without traditional intermediaries. This study adopts a socio-cultural lens to examine the key factors that influence individuals’ intentions to adopt DeFi technologies. In particular, we explore how performance expectancy (perceived usefulness), effort expectancy (perceived ease of use), social influence, and innovativeness drive user adoption, and how these relationships are moderated by demographic factors such as age, gender, education, and income. Drawing on survey data (N = 425) collected in India (an emerging market context), the research employs Structural Equation Modeling (SEM) to test the proposed framework. Results indicate that perceived usefulness and ease of use are significant positive predictors of DeFi adoption. Social influence and individual innovativeness also encourage adoption, especially among younger and more educated users. Moreover, demographic characteristics shape the strength of these effects: for instance, younger users find DeFi more useful and easier to use, women are more impacted by social recommendations, and higher-income individuals are more inclined to adopt innovative financial solutions. These findings underscore that DeFi adoption is not just a technical or economic process, but a culturally situated phenomenon influenced by social dynamics and user diversity. The paper discusses implications for improving digital financial inclusion and strategies for stakeholders to foster broader DeFi acceptance across different social groups