Small and medium-sized firms (SMEs) are critical to promoting innovation and economic growth in today's dynamic and linked world. However, SMEs frequently struggle to understand the intricacies of conventional payment methods, which can reduce their competitiveness and production. The emergence of digital payment systems has been a game-changer for SMEs, providing them with numerous advantages that can greatly improve their overall productivity and operational efficiency. The objective of this study is investigating the impact digital payment system has on SMEs productivity. The descriptive survey methodology was used, and the quantitative method of research was applied through questionnaires for closed-ended questions. The descriptive survey research would comprehensively and accurately examine the link across each variable (digital payment systems and SME profitability) throughout the study. A survey was administered to a sample size of two hundred (200) and all copies of the questionnaire were disseminated to randomly selected respondents but one hundred and seventy-one (171) were returned. Three hypotheses were produced and formulated in order to achieve the study objectives and all three hypotheses tested were accepted. The results of the hypotheses go as thus; T= 6.041, P= .001b, T=6.031, P= .001b, T= 5.372, P= .001b. The analysed data finds that that digital payment systems have an effect on SMEs productivity. The study recommends that Small and medium-sized businesses (SMEs) should choose a digital payment system that is appropriate for their needs and operations. Consider considerations such as usability, compatibility with existing systems, security features, and cost-effectiveness.