Determinants of E-Wallet and IoT Adoption for MSME Operational Efficiency in Indonesia

The adoption of digital payment systems, especially e-wallets, has emerged as a major driver for operational efficiency among Small, and Medium Enterprises (MSMEs) in South Tangerang, a thriving area in Indonesia. This study examines the determinants of e-wallet among MSMEs in South Tangerang, employing the Technology Organization Environment (TOE) framework to analyse technological, organizational, and environmental aspects. Data was gathered via semi-structured interviews with MSME owners and managers, thereafter processed thematically utilizing NVivo 10. The findings indicate that MSMEs in South Tangerang use stable technology infrastructure, facilitating e-wallet adoption and improving transaction efficiency, customer satisfaction, and financial transparency. Nonetheless, obstacles such as internet instability, technical impediments, and insufficient digital literacy persist. The incorporation of Internet of Things (IoT) technologies, including smart POS systems and real-time transaction monitoring tools, enhances operational efficiency and customer service. This study underscores the strategic significance of e-wallets and IoT for MSMEs in South Tangerang and provides actionable recommendations for policymakers and business owners to enhance digital payment systems within the context of Indonesia’s comprehensive digital transformation.