Muhammad Yusra, Hermalia Syahfira, Sri Mulyati, Nur Afni Yunita

The Impact of Digital Payment Gateways, Financial Literacy, and Financial Statement Preparation Capability on MSMEs’ Financial Performance

Introduction

The impact of digital payment gateways, financial literacy, and financial statement preparation capability on msmes’ financial performance. Explore how digital payment gateways, financial literacy, and financial reporting boost MSME financial performance. Study reveals significant positive impacts in North Aceh. Enhance MSME financial health.

Abstract

This study aims to examine the effect of payment gateway utilization, financial literacy, and the ability to prepare financial reports on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in North Aceh Regency. The population of this research consists of 17,309 MSMEs, and a sample of 99 respondents was selected using the Slovin formula and a stratified random sampling technique. Data were analyzed using outer model and inner model evaluation, followed by hypothesis testing. The results indicate that payment gateway utilization, financial literacy, and the ability to prepare financial reports have a positive and significant effect on MSME financial performance. These findings imply that strengthening digital financial adoption, improving financial literacy, and enhancing financial reporting capabilities can improve financial performance among MSMEs. Therefore, policymakers and related institutions are encouraged to design programs that support the integration of digital payments and the development of financial capacity for MSMEs.

Review

This study addresses a highly pertinent topic concerning the financial performance of Micro, Small, and Medium Enterprises (MSMEs), which are vital for economic development. The research clearly articulates its objective: to examine the influence of digital payment gateway utilization, financial literacy, and financial statement preparation capability on MSMEs in North Aceh Regency. The abstract effectively conveys the study's quantitative approach, including the sampling strategy (Slovin formula and stratified random sampling for 99 respondents from a population of 17,309) and data analysis techniques (outer and inner model evaluation, followed by hypothesis testing). The key finding that all three independent variables positively and significantly affect MSME financial performance offers direct and actionable insights for stakeholders. A notable strength of this research lies in its clear focus on critical determinants of MSME success, providing empirical evidence for the interplay of digital adoption and financial acumen. The identification of specific variables directly addresses contemporary challenges faced by MSMEs in a rapidly digitizing economy. However, while the use of the Slovin formula and stratified random sampling is mentioned, the relatively small sample size of 99 respondents drawn from a population of over 17,000, despite the statistical justification, may warrant further discussion in the full paper regarding the representativeness and generalizability of the findings, particularly in a region with diverse MSME characteristics. The abstract also hints at robust quantitative analysis through "outer and inner model evaluation," suggesting a structural equation modeling approach, which would be beneficial to elaborate on regarding specific model fit indices and validation metrics in the full study. In conclusion, this study offers a valuable contribution to the literature on MSME financial performance, providing strong evidence for the benefits of integrating digital payments, improving financial literacy, and enhancing financial reporting capabilities. The implications for policymakers and related institutions are clear, advocating for targeted programs that support these areas. Future research could build upon these findings by exploring potential mediating or moderating variables, conducting comparative studies across different regions or countries, or employing a mixed-methods approach to gain deeper qualitative insights into the challenges and opportunities associated with implementing these changes among MSMEs.

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