Is the rise of non-fungible tokens a significant game-changer for financial innovation? Assessing their adoption in the digital economy

Abstract

Purpose Non-fungible tokens (NFTs) are the most promising phenomenon representing ownership of virtual goods or digital assets. This study aims to empirically examine the factors influencing NFT adoption among customers in the “National Capital Region,” India. Design/methodology/approach The researchers collected data for this quantitative study through a “self-administered questionnaire” from 303 NFT customers in India. The research applied “partial least squares-structural equation modeling (PLS-SEM)” to investigate and validate the hypotheses. Findings The outcomes exhibited that trust, perceived playfulness and customer innovativeness significantly influence attitude and purchase intention toward NFTs. However, perceived risk insignificantly affects both attitude and purchase intention toward NFTs. Besides, attitude and purchase intention significantly influence actual purchase behavior toward NFTs. Practical implications The finding facilitates stakeholders (such as customers, practitioners and service providers) to advance the academic understanding of NFT services, including refining pricing strategies and customer preferences and aligning marketing approaches with identified trends in the NFT market. This study also sheds light on NFT services that can help attain the “Digital India mission” of the Indian government. Originality/value To the authors’ knowledge, no prior efforts have been made to formulate a conceptual model to recognize the factors influencing the actual purchase behavior of customers toward NFT services in India. This paper significantly contributes to the existing literature by addressing this research gap, offering valuable insights, broadening the understanding of NFT adoption and providing a strategic framework for future market development.