This study uses an associative quantitative approach to analyze the role of financial inclusion in mediating the influence of digital payment and financial literacy on the performance of MSMEs in Denpasar City. The population in this study 8.327 MSMEs units in Denpasar City in 2022 that have digitized. Based on the purposive sampling method with sample determination using the Slovin formula, as many as 100 samples were used in this study. Data were collected using a survey method with questionnaires as a research instrument. The data analysis used in this study is SEM-PLS. The results of the study show that; 1) digital payments have a positive and significant effect on financial inclusion, 2) financial literacy has a positive and significant effect on financial inclusion, 3) digital payments have a positive and significant effect on MSMEs performance, 4) financial literacy has a positive and significant effect on MSMEs performance, 5) financial inclusion has a positive but insignificant effect on MSMEs performance, 6) financial inclusion is not able to mediate the influence of digital payments on MSMEs performance, and 7) financial inclusion is not able to mediate the influence of financial literacy on the performance of MSMEs in Denpasar City.