Digital Payment Adoption and Financial Performance among Small Retail Enterprises
DOI:
https://doi.org/10.62731/rgjeb.v2i1.19Keywords:
Digital Payment Adoption, Financial Performance, QRIS, Small Retail Enterprises, Transaction EfficiencyAbstract
This study aims to examine the effect of digital payment adoption on financial performance among small retail enterprises. The research addresses the growing need for small retailers to adapt to cashless transactions and use digital payment systems to improve business efficiency and financial control. This study used a quantitative approach with an explanatory and correlational design. Primary data were collected through structured questionnaires distributed to 300 owners or managers of small retail enterprises that had used digital payment methods such as QRIS, e-wallets, mobile banking transfers, or debit card systems. The research instrument used a five-point Likert scale and was tested for validity and reliability. Data were analyzed using descriptive statistics, correlation analysis, and simple linear regression. The results show that digital payment adoption has a positive and significant effect on financial performance, with a coefficient of 0.612, a t-value of 13.083, and a significance value of 0.000. The R-square value of 0.374 indicates that digital payment adoption explains 37.4% of the variation in financial performance. These findings confirm that digital payment adoption supports sales growth, transaction efficiency, cash flow stability, and profit improvement. The study contributes to the development of Technology Acceptance Model, Technology-Organization-Environment framework, and Resource-Based View by showing how digital payment functions as a practical business resource for small retailers.
References
Abdulai, M. G., Dary, S. K., & Domanban, P. B. (2024). Adoption of digital payment platforms and trade credit activities among informal firms in Ghana. Heliyon, 10(11), e32302. https://doi.org/10.1016/j.heliyon.2024.e32302
Adhikary, A., Diatha, K. S., Borah, S. B., & Sharma, A. (2021). How does the adoption of digital payment technologies influence unorganized retailers’ performance? An investigation in an emerging market. Journal of the Academy of Marketing Science, 49(5), 882–902. https://doi.org/10.1007/s11747-021-00778-y
Daud, I., Nurjannah, D., Mohyi, A., Ambarwati, T., Cahyono, Y., Haryoko, A. D. E., Handoko, A. L., Putra, R. S., Wijoyo, H., Ariyanto, A., & Jihadi, M. (2022). The effect of digital marketing, digital finance and digital payment on finance performance of Indonesian SMEs. International Journal of Data and Network Science, 6(1), 37–44. https://doi.org/10.5267/j.ijdns.2021.10.006
Gao, X., & Ren, Y. (2023). The impact of digital finance on SMEs financialization: Evidence from thirty million Chinese enterprise registrations. Heliyon, 9(8), e18664. https://doi.org/10.1016/j.heliyon.2023.e18664
Hair, J. F., & Alamer, A. (2022). Partial least squares structural equation modeling in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. https://doi.org/10.1016/j.rmal.2022.100027
Irianto, A. B. P., & Chanvarasuth, P. (2025). Drivers and barriers of mobile payment adoption among MSMEs: Insights from Indonesia. Journal of Risk and Financial Management, 18(5), 251. https://doi.org/10.3390/jrfm18050251
Islam, S. M., & Ferrer, M. A. (2025). Unlocking the cashless shift: Retailers’ adoption of digital payment systems in emerging markets. Journal of Theoretical and Applied Electronic Commerce Research, 20(4), 359. https://doi.org/10.3390/jtaer20040359
Kádárová, J., Knežová, J., & Ďurkáčová, M. (2023). Impact of digitalization on SME performance of the EU27: Panel data analysis. Sustainability, 15(13), 9973. https://doi.org/10.3390/su15139973
Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The influence of e-payment and e-commerce services on supply chain performance: Implications of open innovation and solutions for the digitalization of micro, small, and medium enterprises in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119. https://doi.org/10.3390/joitmc8030119
Kurniasari, F., Lestari, E. D., & Tannady, H. (2023). Pursuing long-term business performance: Investigating the effects of financial and technological factors on digital adoption to leverage SME performance and business sustainability, evidence from Indonesian SMEs in the traditional market. Sustainability, 15(16), 12668. https://doi.org/10.3390/su151612668
Kuswoyo, D. A., Stephen, Gunawan, I. P., & Cassandra, C. (2024). The influence of QRIS payment method usage and effectiveness level on small and medium enterprise. 2024 International Conference on Electrical Engineering and Computer Science, 228–233. https://doi.org/10.1109/ICECOS63900.2024.10791218
Kwabena, G. Y., Mei, Q., Ghumro, T. H., Li, W., & Erusalkina, D. (2021). Effects of technological-organizational-environmental factors on the adoption of the mobile payment system. Journal of Asian Finance, Economics and Business, 8(2), 329–338. https://doi.org/10.13106/jafeb.2021.vol8.no2.0329
Lau, E. A., & Kulsum, U. (2023). Becoming a cashless society: The role of QRIS from the Z-generation student’s perspective. Journal of Accounting and Strategic Finance, 6(1), 181–192. https://doi.org/10.33005/jasf.v6i1.404
Ledi, K. K., Ameza-Xemalordzo, E., Amoako, G. K., & Asamoah, B. (2023). Effect of QR code and mobile money on performance of SMEs in developing countries: The role of dynamic capabilities. Cogent Business & Management, 10(2), 2238977. https://doi.org/10.1080/23311975.2023.2238977
Li, Q. (2024). The impact of mobile payments on the financial management efficiency of small and medium-sized enterprises. International Journal of Interactive Mobile Technologies, 18(21), 171–184. https://doi.org/10.3991/ijim.v18i21.52245
Lontchi, C. B., Yang, B., & Shuaib, K. M. (2023). Effect of financial technology on SMEs performance in Cameroon amid COVID-19 recovery: The mediating effect of financial literacy. Sustainability, 15(3), 2171. https://doi.org/10.3390/su15032171
Mishra, V., Walsh, I., & Srivastava, A. (2022). Merchants’ adoption of mobile payment in emerging economies: The case of unorganised retailers in India. European Journal of Information Systems, 31(1), 74–90. https://doi.org/10.1080/0960085X.2021.1978338
Musyaffi, A. M., Gurendrawati, E., Afriadi, B., Oli, M. C., Widawati, Y., & Oktavia, R. (2022). Resistance of traditional SMEs in using digital payments: Development of innovation resistance theory. Human Behavior and Emerging Technologies, 2022, 7538042. https://doi.org/10.1155/2022/7538042
Nugraha, D. P., Setiawan, B., Nathan, R. J., & Fekete-Farkas, M. (2022). Fintech adoption drivers for innovation for SMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(4), 208. https://doi.org/10.3390/joitmc8040208
Ojo, A. O., Fawehinmi, O., Tan, C. N., & Ojo, O. T. (2024). Merchant adoption intention of mobile payment platforms in Malaysia. Journal of Systems and Information Technology, 26(1), 31–50. https://doi.org/10.1108/JSIT-08-2022-0200
Saadah, K., & Setiawan, D. (2024). Determinants of fintech adoption: Evidence from SMEs in Indonesia. LBS Journal of Management & Research, 22(1), 55–65. https://doi.org/10.1108/LBSJMR-11-2022-0076
Tay, L. Y., Tai, H. T., & Tan, G. S. (2022). Digital financial inclusion: A gateway to sustainable development. Heliyon, 8(6), e09766. https://doi.org/10.1016/j.heliyon.2022.e09766
Teng, X., Wu, Z., & Yang, F. (2022). Research on the relationship between digital transformation and performance of SMEs. Sustainability, 14(10), 6012. https://doi.org/10.3390/su14106012
Thathsarani, U. S., & Jianguo, W. (2022). Do digital finance and the Technology Acceptance Model strengthen financial inclusion and SME performance? Information, 13(8), 390. https://doi.org/10.3390/info13080390
Wang, J., Zhou, Y., & Liu, Y. (2025). The impact of digital inclusive finance on SME innovation. Sustainability, 17(8), 3633. https://doi.org/10.3390/su17083633
Yu, W., Huang, H., Kong, X., & Zhu, K. (2023). Can digital inclusive finance improve the financial performance of SMEs? Sustainability, 15(3), 1867. https://doi.org/10.3390/su15031867
Zulqarnain, M., Mustehsan, M., Balouch, U. K., & Munir, S. (2023). Assessing the influence of financial inclusion and digital finance on SMEs performance: The moderating role of technological adaptation. Journal of Management: Small and Medium Enterprises, 16(3), 459–476. https://doi.org/10.35508/jom.v16i3.11943
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
