SMES' DIGITAL PAYMENT ADOPTION: UTAUT MODEL WITH DIGITAL LITERACY

AbstracT The rapid growth of digital payment system in Southeast Asia has been marked by the increasing adoption of standardized QR code payment methods across the region. In response, Indonesia introduced the Quick Response Code Indonesia Standard (QRIS) to enhance financial inclusion and support the digital economy. Despite its potential, the adoption rate among Indonesian small and medium-sized enterprises (SMESs) remains uneven. This study investigates the behavioral intention of SMEs to adopt QRIS, employing the Unified Theory of Acceptance and Use of Technology (UTAUT) framework and incorporating digital literacy as a potential mediating factor. Data were collected from 128 SMEs in the Pasar Lama market district of Tangerang, a regional business hub near Jakarta with strong trade ties to cross-border SME networks in Southeast Asia. The analysis utilized Partial Least Squares – Structural Equation Modelling (PLS – SEM) with SmartPLS 4. The findings reveal that social influence and facilitating conditions significantly affect SMEs’ intention to adopt QRIS, while performance expectancy and effort expectancy do not. Additionally, digital literacy does not mediate the relationship between the UTAUT variables and behavioral intentions. These results suggest that, within a transnational trading environment like Pasar Lama, where SMEs interact with suppliers and consumers from neighboring ASEAN countries, peer influence and institutional support are critical drivers of technology adoption, overshadowing perceived ease of use or usefulness. This study offers insight into the adoption of cross-border payment technologies in Southeast Asia, emphasizing the socio-environmental factors that shape digital transformation among SMEs. The findings highlight the importance of strengthening regional cooperation and peer networks to accelerate the adoption of interoperable payment solutions within the ASEAN market.. Keywords: QRIS, SMEs, Southest Asia, digital payment adoption, UTAUT, digital literacy