Abstract

Digital payment adoption among micro, small and medium enterprises (MSMEs) depends not only on technology but also on users' financial capability and confidence in the system. This study examines the influence of financial literacy and trust on the decision to transact using the Quick Response Code Indonesian Standard (QRIS) among MSMEs in Baubau City, Indonesia. A quantitative approach was applied using primary data collected through a Likert-scale questionnaire from 100 MSME actors selected by purposive sampling. The instruments were valid and reliable (Cronbach's alpha 0.928–0.945), and the classical assumption tests were satisfied. Multiple linear regression showed that financial literacy (b = 0.549, t = 7.616, p < 0.001) and trust (b = 0.329, t = 5.232, p < 0.001) each had a positive and significant partial effect on transaction decisions, and both variables jointly had a significant effect (F = 359.264, p < 0.001). The model explained 88.1% of the variance in transaction decisions. The study concludes that improving financial literacy and building trust in QRIS security and data protection are key to encouraging MSMEs to transact through QRIS. It contributes empirical evidence from a regional city in Southeast Sulawesi to the literature on digital payment adoption.