Digital Financial Literacy and Digital Financial Inclusion Among Indonesian MSMEs: The Mediating Role of Financial Behavior and the Moderating Role of Education Level

The rapid expansion of digital financial services has reshaped financial access for micro, small, and medium enterprises (MSMEs) in Indonesia. Despite their substantial contribution to national economic growth, many MSME owners remain vulnerable to digital financial exclusion due to gaps in digital financial capabilities. This study examines the relationship between Digital Financial Literacy (DFL) and Digital Financial Inclusion (DFI) among Indonesian MSMEs, incorporating Financial Behavior (FB) as a mediating variable and Education Level (EL) as a moderating variable. Using a quantitative, cross-sectional survey design, data were collected from 121 MSME owners and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that digital financial literacy has a positive and significant direct effect on both financial behavior and digital financial inclusion. However, financial behavior does not significantly influence digital financial inclusion and does not mediate the relationship between digital financial literacy and digital financial inclusion. Furthermore, education level does not moderate the relationship between digital financial literacy and digital financial inclusion, suggesting that the impact of digital financial literacy is consistent across different educational backgrounds. These results highlight that digital financial literacy serves as the primary driver of digital financial inclusion among MSMEs in Indonesia, while behavioral transformation and formal education play a more limited role. The study underscores the importance of strengthening practical digital financial literacy initiatives as a direct strategy to enhance inclusive participation in the digital financial ecosystem.