FinTech Adoption in Digital Business: Balancing Financial Opportunities, Risks, and Business Sustainability among MSMEs

This study explores how MSMEs balance financial opportunities and risks arising from FinTech adoption and how this process contributes to business sustainability. A qualitative multiple-case study was conducted with 24 MSME owners and managers from five administrative cities of Jakarta, Bogor City, and Bogor Regency. Informants were selected purposively based on their experience using FinTech services in business operations. Data were collected through semi-structured interviews and analysed thematically using ATLAS.ti. The findings generated five major themes: FinTech adoption as an adaptive response to the digital business environment, financial opportunities, financial and digital risks, balancing strategies, and business sustainability. FinTech improved transaction efficiency, customer convenience, market access, financial record-keeping, cash-flow visibility, and access to digital financing. However, MSMEs also experienced transaction costs, fraud, data-security threats, technological dependence, and repayment pressure from digital debt. Business sustainability was strengthened when FinTech adoption was supported by digital financial literacy, transaction verification, financial separation, controlled borrowing, and payment diversification. The study concludes that FinTech does not automatically create sustainability; its contribution depends on MSMEs’ capacity to manage opportunities and risks responsibly.

Business Sustainability, Digital Business, FinTech Adoption, Financial Opportunities, Financial Risks.

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