Can Financial Advantages and Digital Payments Adoption Provide Effective Solutions to Improve SMEs' Performance?

• Published in: MONTENEGRIN JOURNAL OF ECONOMICS
• Main Authors: Musyaffi, Ayatulloh Michael; Baxtishodovich, Bobur Sobirov; Johari, Razana Juhaida; Wolor, Christian Wiradendi; Afriadi, Bambang; Muna, Arinal
• Format: Article
• Language: English
• Published: ECONOMIC LABORATORY TRANSITION RESEARCH PODGORICA-ELIT 2024
• Subjects: Business & Economics
• Online Access: https://www-webofscience-com.uitm.idm.oclc.org/wos/woscc/full-record/WOS:001208306400006
• ISSN: 1800-5845; 1800-6698
• DOI: 10.14254/1800-5845/2024.20-2.7

The impact of COVID-19 has affected all industries, including SMEs. Digitalization is increasing, so it requires SMEs to adapt. This study's goal is to gain a general understanding of merchant acceptability of the digital payments through the integration of the TAM, Information system success and ECT. The target of this research is SMEs that use digital payments in Indonesia. By using accidental sampling, 342 respondents were obtained. Then, Data were analyzed using SEM-PLS. The main finding show that SMEs satisfaction (SMS) is the most significant factor in improving the performance of SMEs (SP). All TAM constructs, such as perceived usefulness (PUD), perceived ease of use (PEOD) and intention to use digital payment (IUDP), are confirmed to have significant interrelationships. Financial advantage (FA) in this study also has a positive relationship with IUDP. Meanwhile, digital payment quality (DPQ) also relates to PUD and IUDP. Meanwhile, DPQ, PUD, and PEOD were confirmed to have a relationship with SMS. The results of this study also illustrate that FA does have a positive impact, but the contribution of SMEs satisfaction has the most impact in improving the performance of SMEs. So it is crucial to evaluate the satisfaction of SMEs both in terms of quality and features, convenience, and security of digital payment technology. To increase awareness, Digital payment service providers should focus on the system's use and safety. so that SMEs can use digital payment services comfortably. In addition, from the government aspect, it also improves the cashless climate by making supportive policies, such as increasing financial literacy for SMEs and increasing standardized data security.