The Influence of Financial Literacy and Digital Payment Accessibility on the Financial Performance of MSMEs in Seram Islands

Abstract

Geographical challenges and limited access to financial services are the primary factors affecting the competitiveness of businesses in island regions. This study aims to examine the effects of financial literacy and digital payment accessibility on the financial performance of Micro, Small, and Medium Enterprises (MSMEs) in the Seram Islands. This study employed a quantitative associative approach with a field research design. Data were collected through questionnaires distributed to 90 MSME owners across three districts in the Seram Islands using purposive sampling. The data were analyzed using classical assumption tests and multiple linear regression analysis with SPSS version 25. The results indicate that financial literacy has a positive and significant effect on financial performance, suggesting that higher levels of financial literacy lead to better financial performance among MSMEs. Likewise, digital payment accessibility also has a positive and significant effect, indicating that greater access to digital payment technologies contributes to improved business performance.