A The Impact of Financial Technology Adoption on MSME Business Performance in East Java, Indonesia

Nanik Kustiningsih Nanik

doi:10.46510/jami.v7i1.412

Nanik Kustiningsih Nanik STIE Mahardhika

DOI: https://doi.org/10.46510/jami.v7i1.412

Keywords: Financial Technology; MSMEs; Business Performance; Digital Literacy; Digital Transformation

Abstract

Backgrounds. This study aims to analyze the impact of Financial Technology (FinTech) adoption on the business performance of Micro, Small, and Medium Enterprises (MSMEs) in East Java, Indonesia, focusing on operational efficiency, revenue growth, and competitiveness.

Methods. This research employs a qualitative approach using in-depth interviews with MSME actors from various sectors in East Java. Data were collected purposively based on the level of FinTech usage, such as QRIS and e-wallets, and analyzed descriptively to identify patterns and the impact of FinTech adoption on business performance.

Results. The findings indicate that FinTech adoption improves transaction efficiency, accelerates service delivery, and enhances financial record-keeping among MSMEs. Additionally, several businesses report moderate increases in daily revenue and expanded customer reach. However, the impact varies depending on digital literacy levels, business type, and supporting infrastructure such as internet access.

Conclusions. FinTech adoption positively contributes to MSME performance in East Java; however, its optimization requires improved digital financial literacy and stronger infrastructure. Therefore, support from policymakers, financial institutions, and other stakeholders is essential to promote inclusive and sustainable digital economic development.

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