Pioneering digital pawn revolution: Unraveling trust's full mediation in service quality-driven behavioral intentions from a digital pawn application

Abstract

Background: The digital financial sector in Indonesia is experiencing rapid expansion, prompting conventional financial institutions to launch mobile applications. However, the continued use of these applications depends on the ability to build user loyalty. This study analyzes how perceived app service quality and user trust levels influence their intention to continue using the service in the context of digital pawnshops. Methods: This explanatory quantitative study used an online survey of 150 active users of a digital pawn application who had at least three months of user experience. Data were collected using a Likert scale questionnaire and analyzed using Structural Equation Modeling-Partial Least Squares. Model evaluation included testing convergent and discriminant validity, path coefficients, statistical significance, indirect mediation effects, and model fit measures. Findings: The analysis results show that service quality positively and significantly influences user trust. Trust also significantly influences behavioral intention. Although the direct effect of service quality on behavioral intention is not significant, the indirect effect through trust is very strong, indicating full mediation. The model fit is excellent. Conclusion: User trust is a key element that fully mediates the relationship between service quality and continued behavioral intention, underscoring the importance of trust-building strategies in the digital financial application ecosystem. Novelty/Originality of the article: This study makes a significant contribution by revealing the full mediation of trust in the service quality-behavioral intention relationship in the context of a digital pawn application in Indonesia, distinguishing it from studies on more general digital services.