Transforming Islamic social finance: determinants of blockchain technology adoption for zakat payment

Purpose This study aims to investigate the determinants influencing the adoption of blockchain technology for zakat payment in Indonesia. Design/methodology/approach This study used a quantitative research design using the TRUTAUT model, which integrates the technology readiness index (TRI) and the unified theory of acceptance and use of technology 2 (UTAUT2). The framework was constructed to examine how blockchain-based zakat solutions can benefit zakat institutions, as well as how stakeholders perceive the potential for this technology to enhance zakat collection. Using survey data from 410 respondents, this study applied structural equation modeling to evaluate the relationships among multiple variables and identify significant predictors of blockchain adoption. Findings This study identifies several key factors that significantly influence the intention to adopt blockchain technology in the zakat payment system. Effort expectancy, facilitating conditions, habit, trust in the e-zakat system, innovativeness, discomfort and insecurity are found to be significant predictors of behavioral intention to use blockchain, while social influence, hedonic motivation and optimism are not significant. These findings offer insights into the critical elements that can enhance the implementation and adoption of blockchain in zakat management. Practical implications This study provides actionable insights for policymakers, zakat institutions and technology providers. By understanding the key factors that drive the intention to adopt blockchain technology, stakeholders can design and implement more effective electronic systems for zakat management, ultimately enhancing zakat fund collection and distribution. Social implications This research addresses the potential for blockchain technology to improve poverty eradication efforts through more efficient zakat institutions in Indonesia. By facilitating more transparent and effective zakat payments, this study aims to enhance the social impact of zakat funds, contributing to greater economic equity and social welfare. Originality/value This study integrates the TRI and the UTAUT2 into a cohesive model for zakat payment systems, offering a novel framework for understanding the adoption of blockchain technology within Islamic social finance.