Title:
The Effect of Financial Literacy on Msme Performance Through the Adoption of Digital Payment in Pangkalpinang City

Authors:
Sinditya Putri, Tere Claudea, Varisa Aulya, Devi Valeriani, Indonesia

Abstract:

One of such digital payment methods, which is becoming more commonly using Micro, Small and Medium Enterprises (MSME) in Pangkalpinang City, is Quick Response Code Indonesian Standard (QRIS). Business actors have convenience in receiving payments made faster through a single integrated code in the service. It does not only shorten the time of the transaction, but also makes it easier to minimize the risk of oversights in terms of cash management, as well as enables more frequent financial documentation. Nevertheless, digital payment systems have not offered complete assistance in business administration, since the information produced with regard to its transactions is not yet much employed as an evidence of payment, instead of financial documentation. This paper is a quantitative research with an explanatory research design. The size of the research samples was 210 MSME actors calculated according to the Krejcie table. Questionnaires were used to gather data which was further examined with Structural Equation modeling-Partial Least Squares (SEM-PLS) approach with the assistance of SmartPLS 4.0. The study findings indicate that financial literacy positively and significantly impacts the performance of MSMEs and the uptake of Digital Payment. In the meantime, the use of digital payments, on the one hand, does not critically impact the performance of MSMEs, and has failed to mediate the impact of financial literacy on the two relationships.

DOI: https://doi.org/10.51505/IJEBMR.2026.11010