FINTECH PAYMENT TRANSFORMATION IN MSME BUSINESS FINANCE

The transformation of financial transactions through Financial Technology (Fintech) has brought significant impact on financial efficiency and business performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This article aims to analyze how Fintech-based payment systems contribute to MSME development in the context of a digital economy. Employing a qualitative approach with library research methods, this study draws insights from various academic sources including journals, books, and institutional reports. The results show that Fintech facilitates real-time digital payments, enhances transaction recording, and improves financial decision-making through increased digital financial literacy. Moreover, Fintech expands access to financing alternatives for unbankable MSMEs, particularly through Islamic Fintech services. Despite its benefits, the adoption of Fintech still faces challenges such as low digital literacy and limited infrastructure in rural areas. Hence, collaboration among stakeholders, regulatory support, and sustainable education initiatives are essential to ensure inclusive and secure digital financial transformation. This research concludes that Fintech serves as a strategic pillar in strengthening MSMEs' resilience and accelerating inclusive economic growth in Indonesia.