The digitalization transformation of MSMEs is crucial for enhancing both the national and regional economies, as MSMEs significantly contribute to the Gross Regional Domestic Product and play a vital role in employment generation. Prior to the integration of digital technologies, the marketing reach of MSMEs was restricted, which led to a decrease in sales turnover and a corresponding decline in their income. This article examines the impact of digital payment systems, marketing digitalization, and distribution digitalization on the income changes of MSMEs located in Teras Malioboro 1, Yogyakarta City. Data were collected between March–May 2024 through a survey of 90 purposively selected MSME operators in the craft, fashion, and culinary sectors. Logistic regression analysis indicates that digital payments and marketing digitalization significantly increase the likelihood of income enhancement, whereas distribution digitalization exhibits a significant negative impact, believed to stem from high platform commissions and low digital logistics literacy among MSMEs.
Fauziyah et al. (2026) studied this question.