Assessing MSMEs’ Readiness for Digital Payment Adoption: A UTAUT2-Based Approach

Digital payments are crucial for Indonesian MSME competitiveness, yet adoption faces challenges like infrastructural limitations, digital literacy gaps, and cash preferences, demanding robust assessment tools. This preliminary study evaluates an adapted Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) instrument for Quick Response Indonesian Standard (QRIS) adoption factors among Bandung MSMEs. The primary objective was establishing this instrument's psychometric soundness for the MSME context, ensuring accurate measurement of key UTAUT2 constructs for broader predictive research on QRIS adoption drivers. Using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with 35 respondents, the measurement model was iteratively refined. Problematic Price Value, Facilitating Conditions, and Habit indicators were removed due to low loadings and discriminant validity issues. The final refined model demonstrated acceptable internal consistency, convergent validity, and discriminant validity. Despite minor concerns with some loadings and the small sample size, results provide crucial preliminary evidence for the instrument's psychometric integrity and initial relevance. Future research with a larger, representative sample is essential to confirm these findings before extensively investigating QRIS adoption drivers using this validated instrument.