From Trust to Hate: The Emotional Consequences of FinTech Service Failures on Digital Consumers

Abstract

This study examines the relationship between FinTech service failures and brand hate in the Pakistani market, investigating the mediating roles of perceived betrayal and negative emotions. Using a quantitative research design, data were collected from 250 FinTech users through a structured questionnaire. The findings reveal that technical, functional, and ethical service failures significantly contribute to perceived betrayal, with ethical failures demonstrating the strongest impact (β = 0.41). The results further establish a sequential mediation pathway, where service failures influence brand hate through perceived betrayal and negative emotions. The model explains substantial variance in key constructs, with R² values of 0.59 for perceived betrayal, 0.38 for negative emotions, and 0.34 for brand hate. All hypothesized relationships were statistically significant (p < 0.001), confirming that FinTech service failures trigger a cognitive-affective process that culminates in brand hate. The study provides valuable insights for FinTech managers and policymakers, emphasizing the need for robust service delivery systems, ethical business practices, and effective complaint resolution mechanisms in Pakistan's rapidly evolving digital financial landscape.