Digital Transformation at the Grassroots: Unveiling Spill-over Effects and Adaptation Resistance of QRIS in Traditional Marketplace MSME Ecosystems of Palopo City

Abstract

Digital payment transformation through Quick Response Code Indonesian Standard (QRIS) has become a catalyst for fundamental change in Indonesia's Micro, Small, and Medium Enterprises (MSME) ecosystem. This research analyzes the impact of digital payment policy on MSME actors in the Pancasila Field culinary center of Palopo City using the Howlett-Mukherjee Policy Complexity framework (2014) with a five-dimensional approach: interconnectivity, spill-over effects, system resilience, implementation complexity, and stakeholder resistance. The quantitative research method with random sampling technique involved 22 MSME actors selected from a population of 90 business units using the Slovin formula (5% margin of error). The research results show that QRIS adoption creates high interconnectivity between digital payment systems and MSME operations, where 90.90% of respondents have used QRIS for 1-2 years with instrument reliability Cronbach's Alpha of 0.876. Significant spill-over effects were identified through consumer behavior changes, emergence of digitalization support businesses, and transformation of MSME business models from conventional to digital hybrid. System resilience is reflected in increased digital literacy, market access expansion, and financial transparency. However, implementation complexity still faces constraints of limited technological knowledge, unstable internet infrastructure, and Merchant Discount Rate costs of 0.7%. Stakeholder resistance shows cash transaction preferences due to local cultural habit factors, although some business actors have developed collaborative innovations with fintech platforms. This research contributes to the implementation of the Indonesian Payment System Blueprint 2030 by providing evidence-based policy recommendations for accelerating digital financial inclusion in Eastern Indonesia.