Pengaruh Literasi Keuangan dan Digital Payment terhadap Kinerja UMKM Kawasan Urban

This study aims to examine the impact of financial literacy and digital payments on the performance of MSMEs in urban areas. A quantitative approach was adopted as the methodological framework, involving 50 MSME owners in urban areas of Central Java Province selected through purposive sampling. Data were collected using a 1–5 Likert scale questionnaire and analyzed via multiple linear regression using SmartPLS version 4.1.1.8. The study yielded two key findings. First, financial literacy and digital payments each have a significant impact on MSME performance. Second, both factors were found to have a significant simultaneous impact on MSME performance. These findings confirm that enhancing financial literacy and adopting digital payments are crucial factors in boosting the performance of urban MSMEs. This study contributes to the limited body of research on urban MSMEs and offers practical implications for business owners and policymakers in designing strategies to strengthen MSME capacity. Consequently, improving financial literacy and utilizing digital payments emerge as two key strategies that should be promoted to enhance MSME performance in urban areas.