Determinants of Financial Performance of MSMEs in Indonesia Through Payment Gateway

This study aims to analyze the implementation of financial literacy, financial management on the financial performance of MSMEs through Payment Gateways in Indonesia. As many as 95 Micro, Small and Medium Enterprises (MSMEs) throughout Indonesia have been involved as research samples. This study is included in the category of a quantitative approach with SEM (Structural Equation Model) as an analysis model, while the software used is Smart PLS version 3.0. The results of the analysis show that all literacy and financial management have a significant positive effect on payment gateways and the financial performance of MSMEs in Indonesia as the proposed hypothesis. The payment gateway variable has a significant positive effect on the financial performance of MSMEs in Indonesia. The application of financial literacy and financial management to MSME activities/transactions through payment gateways can improve the financial performance of MSMEs in Indonesia. The findings of this research are expected to contribute to stakeholders who play a role in encouraging financial literacy and management in Indonesia. The MSME community must be financially literate, in addition to financial literacy the importance of fintech-based technology knowledge, namely payment gateways must be owned by every community, including MSME actors must invest funds wisely and optimally in order to increase the desired output with the use of technology.