Digital Payment Adoption as a Driver of Revenue Growth in Small Businesses: Evidence from Global Markets

Abstract

This study addresses the problem that small businesses increasingly adopt digital payment tools, yet decision makers lack evidence on whether deeper adoption using cloud-based and enterprise payment solutions translates into revenue growth. The purpose was to test the impact of Digital Payment Adoption Intensity (DPAI) on revenue growth and to explain when and how this effect occurs. Using a quantitative cross-sectional, case-based design, data were collected from N = 312 SMEs across retail (41.7%), services (38.1%), and mixed trade/logistics (20.2%) cases. Key variables included DPAI (M = 3.68, SD = 0.71), trust/security perception (α = .86), fee burden (α = .81), customer reach (α = .84), operational efficiency (α = .85), and perceived revenue growth (α = .83), with overall scale reliability acceptable across constructs (α = .81 to .88). The analysis plan applied descriptive statistics, reliability testing, Pearson correlations, multiple regression with controls (firm size, firm age, sector, location, digital readiness), bootstrapped mediation, and moderation via interaction terms, supported by a placebo specificity test. Headline findings show that DPAI was associated with revenue growth (r = .52, p < .001) and remained significant in the controlled model (β = .38, t = 7.92, p < .001; Adjusted R² = .32). Mechanism tests indicated partial mediation through customer reach (indirect effect = 0.11, 95% CI [0.06, 0.17]) and operational efficiency (indirect effect = 0.08, 95% CI [0.03, 0.14]). Boundary conditions mattered: trust/security strengthened returns to adoption (DPAI×Trust β = .12, p = .004), while fee burden weakened them (DPAI×Fees β = −.10, p = .011). A typology check showed a clear dose–response pattern where high adopters reported higher growth (M = 3.89) than low adopters (M = 3.12). Implications suggest SMEs should prioritize operational integration and trust-building while actively managing transaction fees, and providers and policymakers should support secure, reliable, and affordable payment infrastructures to unlock measurable growth benefits.