Abstract: The introduction of digital payment facilities like the Unified Payment Interface (UPI) along with the acceptance of QR Codes and point of sale terminals, has transformed the payment methods of MSMEs in India. The cash handling costs associated with transactions have been lowered, which has enhanced collection speed and created a trail that enables lenders to make decisions regarding creditworthiness. The risks incurred through digital payments have offset part of the gains. These include increased frauds, misuse of data, and failures of transactions. This study designs DPA with links to the FP, operational efficiency standard and AFC. The influence exerted by DPA on FP is mediated by PCR. The model is estimated using Partial least squares structural equations modeling (PLS SEM) with over 400 responses from proprietors/managing directors of registered MSME in Kerala. The paper shows that the method works based on one dataset. All the work on technology adoption, resource-based theory and business value of information technology is combining into a single theory for the MSME sector. MSMEs that engage in digital payment methods such as UPI are likely to get improved performance.