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Purpose This study aims to explore the relationship between Fintech integration and innovation performance in French SMEs listed on Euronext Growth Paris and investigates the effects of digital finance adoption on the financial performance of UK-listed SMEs. Design/methodology/approach The French study uses a balanced panel of 186 SMEs from 2022 to 2024, using fixed-effects regression to examine how Fintech adoption (digital credit, payment systems, governance expertise) affects innovation (patent applications). For the UK SMEs, secondary data from 224 firms (2022–2024) is analysed using multivariate regression to explore how digital finance adoption, financial literacy, financial constraints and macroeconomic factors influence profitability and operational efficiency. Findings The results show that Fintech adoption significantly enhances innovation in French SMEs, with governance expertise further boosting this impact. In the UK, digital finance adoption improves profitability by reducing transaction costs and enhancing financial access. Financial literacy moderates the relationship, and macroeconomic factors, like GDP growth, strengthen the positive effects of digital finance adoption on SME performance. Research limitations/implications The focus on publicly listed SMEs limits generalisability to private firms. Future research could explore broader sectors and markets. Practical implications SMEs can leverage Fintech for enhanced innovation and improved financial outcomes, offering insights for managers and policymakers. Social implications The study highlights how Fintech adoption can promote financial inclusion and contribute to more sustainable economic growth by supporting innovation in SMEs. Originality/value This research contributes to entrepreneurial-ecosystem theory by demonstrating Fintech’s role as a strategic capability that drives innovation in public SMEs. It also extends Transaction Cost Economics by illustrating how digital finance adoption reduces transaction costs and enhances financial performance for SMEs in developed economies.