Digital payment technologies have transformed the way small businesses conduct financial transactions and interact with customers. This conceptual review examines the factors influencing the adoption of digital payment systems among small businesses, including perceived usefulness, ease of use, customer demand, government initiatives, financial inclusion, and technological readiness. The paper discusses commonly used digital payment methods such as mobile wallets, QR-code payments, internet banking, and Unified Payments Interface (UPI), highlighting their role in improving transaction efficiency, business transparency, and customer convenience. It also explores challenges that may hinder adoption, including cybersecurity concerns, digital literacy, infrastructure limitations, transaction costs, and resistance to organizational change. Rather than presenting original empirical findings, this review synthesizes existing literature to provide an overview of the opportunities and barriers associated with digital payment adoption. The paper concludes that successful digital transformation among small businesses requires supportive government policies, secure payment infrastructure, financial education, and continuous technological innovation. The review contributes to the understanding of digital commerce by summarizing current knowledge and identifying areas for future research in digital payment adoption and small business management.