This study aims to ascertain how small and medium-sized businesses (SMEs) perceive and embrace fintech in business transactions and the effects of fintech payment services on SMEs. The SMEs in Malioboro, Yogyakarta, Indonesia were the subject of this study. The case study method and a qualitative approach are both used in this work. Ten cases/SMEs with different characteristics are used as research subjects in case selection. This research uses three data collection methods: Interview method, observation, and document data. In collecting data using the interview method, this research uses the Technology Acceptance Model (TAM) framework as a reference for preparing questions. The data analysis process uses the descriptive analysis method. The results showed that many SMEs in Malioboro still have not realized that following the development of financial technology innovation is essential to survive in the digital economic era. Most of the SMEs registered in financial technology products only follow with minimal awareness and knowledge of the benefits and functions of technology. Due to environmental conditions, which are still comfortable with traditional transactions, it supports changing payments into the fintech era. Mobile payment users complain about the slowness and complexity of payments through mobile payments, so the goal of simplifying transactions with mobile payments is not achieved. The study’s conclusions are anticipated to help customers, managers in the private sector, and legislators comprehend the implications of new digitalization trends and choose the best adoption strategies. Policymakers are urged to examine the regulation of electronic money and acknowledge the possibility of cooperative methods.