<![CDATA[The digital technology development has transformed transaction systems, particularly in business activities that require digital literacy to make optimal use of digital payment applications. However, observations in Penggung Kidul Village reveal that many business owners still face several challenges, such as limited understanding of how to use the applications, changes to the application systems, and a lack of understanding regarding digital transaction security. This study aims to describe the level of digital literacy among business owners in utilizing digital payments and to explain how they apply these tools in their business activities in Penggung Kidul Village, Rowokangkung, Lumajang. This study employs a qualitative approach with a narrative methodology. The informants for this study include business owners, business customers, and the local hamlet head. Data collected by through observation, in-depth interviews, and documentation. Data analysis involved reduction, display, and verification. Data validity was assessed through tests of credibility, transferability, dependability, and confirmability. This research has showed first business owners have a fairly good level of digital literacy, as evidenced by their ability to access devices and networks, operate applications, understand transaction information, utilize digital communication media, and implement digital security measures. Second, the use of digital payments has facilitated transactions, expedited service delivery, and improved business efficiency, although it is still hampered by an unstable internet connection. This study recommends that STKIP PGRI Lumajang continue to improve the quality of its educational services by strengthening adaptive learning to mitigate digital financial risks. Other researchers hopefully expand upon this study by incorporating additional variables that can foster digital literacy among business owners, such as family environment, access to information technology, and educational attainment.]]>
