DIGITAL PAYMENT ADOPTION AND FINANCIAL MANAGEMENT CAPABILITY OF MICRO ENTERPRISES

Abstract

Background: Accepting digital payments increases transaction visibility, but owners may not convert transaction records into cash-flow control, reconciliation, budgeting, or financing readiness. Aim: The present synthesis explains how the relationship between the focal practices and financial management capability operates in micro enterprises using QR-based payments, mobile wallets, transfers, and transaction applications. Method: A conceptual narrative synthesis draws on selected scholarly and institutional publications. The discussion is organized around mechanisms, boundary conditions, and practical implications. Results: The synthesis identifies six linked mechanisms: transaction record availability, daily reconciliation, separation of household and business funds, cash-flow forecasting, fees and settlement management, financial learning from digital records. The inquiry indicates that outcomes depend less on nominal adoption than on institutionalization quality, governance, learning, and fit with local capacity. Conclusion: Decision makers should define the expected outcome, assign responsibility, establish a small set of auditable indicators, and revise the intervention when source findings contradicts its assumptions. Contribution: The inquiry provides a conditional framework without claiming primary data that were not collected.