A Research Study on the Effects of Cashless Transactions on People’s Spending

Behavior

A Research Study
Presented to the Faculty of the

In Partial Fulfillment of the Requirements for the Subject

EXPORES – EXPORT RESEARCH (TE009)
By
Cristobal, Mary Anne A.
Malayang, Jefferson C.
Sampan, Marie Tonie Q.
Solina, Micah Erika A.

Bachelor of Science in Business Administration Major in Export Management

Submitted to
Sir Renato Juan Fajardo
Professor
April 11, 2018
 ABSTRACT

Cashless transaction is a type of transaction used by different consumers by means of debit/credit

cards, bank transfers, cheques, and online payment mobile applications, with no physical money handed
from one person to another. Consumers use this for convenience and minimal risk to incur. They tend to
endorse it to others to share the satisfaction that they’ve enjoyed. However, problems are being
experienced, which makes some of them not to use the system anymore, and even to tell also the others
the same thing. The behavior of people, in relation to the system differs on their experiences. It empowers
the role of the consumers in the marketplace in choosing a good or service that will surely help them with
their fulfillment.

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 TABLE OF CONTENTS

ABSTRACT.......................................................................................................................................... I

TABLE OF CONTENTS ..................................................................................................................... II-III

CHAPTER 1. INTRODUCTION OF THE STUDY ........................................................................................1

I. BACKGROUND OF THE STUDY
II. OBJECTIVES OF THE STUDY
III. STATEMENT OF THE PROBLEM
IV. SIGNIFICANCE OF THE STUDY
V. DEFINITION OF TERMS

CHAPTER 2. REVIEW OF RELATED LITERATURE ....................................................................................8

I. SYNTHESIS

CHAPTER 3. THEORETICAL FRAMEWORK .......................................................................................... 17

I. OVERVIEW OF THE THEORETICAL FRAMEWORK
II. CONCEPTUAL FRAMEWORK
III. OPERATIONAL FRAMEWORK

CHAPTER 4. METHODOLOGY ............................................................................................................ 26

I. METHODOLOGY
II. RESEARCH DESIGN
III. RESEARCH APPROACH
IV. RESEARCH INSTRUMENTS AND TECHNIQUES
V. STATISTICAL TOOL

CHAPTER 5. DATA ANALYSIS, PRESENTATION, INTERPRETATIONS, AND CONCLUSIONS ...................... 30

I. INTRODUCTION
II. DEMOGRAPHIC PROFILE
III. SURVEY PROPER
IV. ADDITIONAL INFORMATION
V. OVERALL CONCLUSION

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CHAPTER 6. SUMMARY OF FINDINGS, CONCLUSIONS, AND RECOMMENDATIONS ............................. 77
I. INTRODUCTION
II. SUMMARY OF FINDINGS
III. RECOMMENDATIONS
IV. SUMMARY OF FINDINGS AND RECOMMENDATIONS

CHAPTER 7. BIBLIOGRAPHY .............................................................................................................. 82

SURVEY QUESTIONNAIRES ............................................................................................................... 85

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 I. INTRODUCTION OF THE STUDY

A. Research (Background of the Study)

As money has been invented, fraud and volume payment became an issue. Bartering became one
of the methods used by people and is still being practiced in different cultures. It exchanged goods and
services with another person without involving money.

Gold, silver, and bronze began to produce, but became unsafe, especially with the owners, making
forgery appear. Forgers blended the gold with silver and copper to produce metal bars. This process makes
the product look like a real gold, but costs much less. In return, coins appeared, produced with the use of
mints. Nothing changed and didn't reduce the danger of traveling with a purse of important things.

Years passed, and monetary bills have been launched into trade markets, and became one of the
modes of payment up to present. Though, people nowadays are living in the world of Digital Technology
where part of everyday life are dependent on technology. With the use of a scheme for transactions via
digital information called cashless system, consumers’ buying behavior are growing. Further, they can no
longer bring a bigger amount of cash in their wallet, instead, they can now pay bills through electronic
cards and/or other mobile payment systems.

i. The Rise of Cashless

Trade industry bloomed so much with thousands of merchants. They're crossing oceans and took
local produce to different lands. Buying of a volume of goods by merchants has increased more and ended
by having a shortage in coins. Cheques become more advanced, knowing the fact that it was used before
to be given to a bank in exchange for money, but also to be given to another dealer with a written and
signed monetary value to be deposited in the bank. These notes are useful for transactions of big volume
but not in retail.

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 Prepaid, Credit, Debit Cards, and other advanced forms of payment have raised as a driving force
behind the explosion of the global economy over the last 5 years.

During the 1950s, it started in a Diners Club, founded by Frank McNamara, who introduced a novel
method of paying for purchases that he called as a “credit card.” 42,000 members of the Diners’ Club need
never pay the waiter when they wind up a spirited evening on the town. ("Business: Charge It, Please",
2018) They simply sign the check, get billed once a month. This credit card has no penalty or interest
charges for payments made after 30 days. The company’s main source of revenue was the 7% fee which
they called as interchange that was charged to merchants on each transaction.

Visa’s history begins in 1958, when Bank of America launched the first consumer credit card
program for small to medium-sized merchants and middle-class consumers in the U.S. In 1964, Automated
Teller Machine (ATM) has been created being known to be an electronic telecommunications device
enabling the customers to do financial transactions at any time, without needing a direct interaction with
a bank staff.

In 1968, Interbank Card Association (ITC) was created by a group of California banks, which would
soon be issued as the nation’s second major bank card, MasterCard. It didn’t take long for the company
to grow the company expanded internationally in 1974 and introduced the debit card in 1975. Initiated
its BankAmerica program in Fresno, Calif. Originally, the company only planned to provide the system
across the state. In 2004, Proximity card, contactless payments on Near Field Communication. Eventually,
on 2008, mobile payment rose and became more popular with different users up to present.

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 Cashless transaction is one where the payment is made by means other than physical cash.
(Gupta, 2017) The rise of cashless transaction is due to emerging trends driven by consumer’s preference,
convenience and efficiency in transacting. (Ahmed, 2016) The concept of cashless transaction system
emerged in the nineteenth century through the public writings of Edward Bellamy. He described that
paper transaction will soon be replaced by credit-card based system. (Bellamy, 2000) Mobile wallets,
online payment providers, and near field communication technology (NFC) is continuously innovating the
way people transact using mostly “Tap-and-Go” payment solutions. (Ahmed, 2016) Mobile transactions
will continue to grow in 2017 as Apple-pay, Google Wallet, Paymaya, Gcash and other companies
continuously advertising this method. (NASDAQ, 2017) Bitcoin is a trend now and is always the content of
the news headline almost every day. Bitcoin is a decentralized block chain and public ledger that verifies
each transaction via a network of nodes. (Flatt, 2016)

During the year 2000, hip-hop music and culture are being used to provide an unverified
perspective of cashless society of the Millennials. (Lewis, Cole, 2016). However, in Britain, a survey result
found out that shoppers are using less cash than ever before because retailers are introducing a new
system of payment. (British Retail Consortium, 2014) In the Philippines, Smart eMoney, a digital financial
service of Philippine Long-Distance Telephone and Smart Communications, introduced PayMaya. On the
other hand, Globe telecom along with Integrated-Micro Electronics introduced their own version of
PayMaya called Gcash. Both companies are convincing the Filipinos to download to their mobile phones
that facilitate payments for digital transactions. (Estopace, 2015)

According to data of BSP as of 2012, there are 112 banks in the Philippines that are equipped with
an electronic banking system (internet or mobile-based). 54 of these 112 banks are rural banks. There are
24 e-money banks and 3 e-money issuers (non-bank/others). There are over 15,000 cash-in/cash-out
agents. There are about 8 million active users of e-money platforms, and e-money total inflow and outflow
transactions amounts to over PhP 188 million.

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B. Objectives of the Study

i. Primary Objective
- The study will be conducted to identify the factors of cashless transactions that contribute
to the changes on people’s behavior and lifestyle. This study will be conducted to
recognize the benefits and problems of cashless transaction system in the society.

ii. Secondary Objectives

- Know the modes of cashless transactions systems that are currently available in a
community
- Know the factors to consider that will help evaluate the effects or changes of their
behavior/lifestyle towards the concept of cashless systems in the Benildean community.
- Determine further effects and the relation of cashless system to the spending behavior
of the students, staffs and other employees, and faculties of the De La Salle-College of
Saint Benilde.
- To determine the number of people in the Benildean community who is in favor of
imposing a cashless society in the Philippines.
- To determine the number of times they use the cashless system in their payment.
- Discover the different experiences that the Benildean community encounter in using
different modes of cashless system
- Know the problems being encountered using the system
- To know the elements that hinders from implementing cashless system/society
- Identify and describe the factors that may affect the spending behavior of the users of
cashless payment
- Recognize the effect of cashless transactions to a nation’s economy
- Be aware of people’s contribution in the economy using cashless transactions

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C. Statement of the Problem

The process of cashless transactions is becoming a trend in modern society. It paved the way to
convenience that made transactions of every consumer easy. The use of methods of debit/credit cards,
cryptocurrencies, digital wallets and other modes of payment that can be done digitally were used. A
recent study by Visa, one of the well-known multinational financial services, shows that from over 2,000
respondents from Southeast Asian countries, 63% of the Filipinos are highly aware of contactless payment
or cashless transactions. However, the study also shows that Filipinos of two (2) out of ten (10) Filipinos
will used this system. This is due to misunderstanding about the contactless payment and Filipinos are
worrying about the security of their information (Visa.com.ph, 2017).

Systems are built to maintain a secured network data, so for the company itself to implement
strong access control measure. However, it concerns most of the people due to different occurrences of
identity theft and even the difficulty with the “tech-savvy” people (mostly older people) to adjust with the
new world of commerce using the system (Colombo, 2017). Moreover, it will always be a choice for every
consumer to use the system or not, depending on what they perceive on it.

There are some people using this system to save money. They coin this as “mobile wallet”, which
according to them, makes their money safer and secured. Some of them also use this as a mode of
payment to incur minimal risk. It allows more people to use this since it makes the consumer to feel the
convenience especially when having different transactions using the system. Nevertheless, Philippines do
not have the full capacity yet of implementing massive transaction system. One of the reasons is the
internet connection. Jack Ma, CEO of Alibaba, came in the Philippines last year 2017, and commented that
the internet in the country is no good; the fact that internet is needed to conduct digital transactions that
can be done through e-wallets and the likes.

Further, this qualitative research about digitalization of transactions will help the researchers
identify what are the benefits and the drawback of using cashless payment method among the Filipinos.
It will also reflect what are the factors needed to implement cashless transaction method in the economy
of the Philippines. The researchers want to discover if using digital payment methods can affect the
spending behavior of clients.

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D. Significance of the Study

This research hopes to establish an understanding to the people of knowing what cashless system
of payment is. The data gathered in this study will be used as a reference in conducting another research,
and other related studies. Other business ventures will also be using this study in facilitating them to
conduct their strategies and other valuable solutions to make operations better for customers’
satisfaction.

Further, findings in this study will provide knowledge of the purpose, pros, and cons of using the
system. To contribute to the benefit of the society seeing that this system of payment portrays a vital role
in the world today.

E. Scope and Limitation of the Study

This study was managed to know the effects of cashless transactions with the Benildean
community of the Taft campus of De La Salle-College of Saint Benilde as perceived by the students, staffs
and other employees, and faculties. The following became part of the considerations to achieve the main
goal of this study: advantages and disadvantages of the cashless system, respondents’ perception on
transacting with the use of the system, and proposed suggestions/recommendations for further
improvements.

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F. Definition of Terms

1. Cashless System. Operated through a digital system for financial purposes that uses cards, other
electronic methods rather than physical money.
2. Consumer Behavior. It refers to the actions of the consumers in the marketplace and the
underlying motives for those actions. It is critical to understand consumer behavior to know how
potential customers will respond to a new product or service.
3. ATM. (Automated Teller Machine) is an electronic machine that performs basic banking functions
such as handling deposits, check balances, and withdrawals.
4. Chargebacks. A transaction reversal meant to serve as a form of consumer protection from
fraudulent activity committed by both merchants and individuals.
5. E-commerce. Business transacted by transferring data electronically like the Internet.
6. Forgery. The action of forging or producing a copy of a document, signature, banknote, or work
of art.
7. Merchant. A buyer and seller of commodities for profit: trader; the operator of a retail business:
storekeeper
8. Proximity card. A "contactless" smart card which can be read without inserting it into a reader
device, as required by earlier magnetic stripe cards such as credit cards and "contact" type smart
cards.
9. Cryptocurrency. A digital currency in which encryption techniques are used to regulate the
generation of units of currency and verify the transfer of funds, operating independently of a
central bank.
10. Telecommunication. Communication over a distance by cable, telegraph, telephone, or
broadcasting.
11. Millennials. Also known as Generation Y. They are the generational demographic cohort following
Generation X.
12. EFTPoS. Electronic Fund Transfer at Point-of-Sale. A payment system which allows faster and safer
digital fund transfers at payment terminals.
13. Neurochemical. A small organic molecule or peptide that participates in neural activity.
14. Serotonin. A chemical nerve cells produce that sends signals between nerve cells.

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 II. REVIEW OF RELATED LITERATURE

Individuals will select, purchase, and use the goods and services to meet their needs and wants
(Vainikka, 2015) which starts, and ends with their satisfaction. In the modern world of marketing,
customers will always have a room by choosing two different choices that persuaded them to buy or avail
the product (Durmaz, 2014). According to a survey by Gallup International, Philippines is third of the
happiest countries in the world. It resulted in 86% of the surveyed Filipinos telling that they are happy
(Gallup International). Consumer confidence and spending intentions of the Filipinos also scored high in
one of the studies conducted by Nielsen Global. In their study, job optimism, spending intentions, and
financial confidence rise to 88%, 61%, and 86%, respectively (Euromonitor International, 2018).

When it comes to the buying behavior of Filipinos, they always turn into brands that can offer
them convenience and satisfaction. It is not just homes that they are fond of buying but is also turning
into a new set of services that removes the burden of ownership, termed as “sharing economy” (Goldman
Sachs Global Investment Research). They are more open to manifest wide patterns of social habits.
Filipinos are also fond of interacting with social media. According to the Digital Global Overview, fifty-
eight percent of the 100 million plus population of the Philippines has active social media accounts.
Filipinos tend to spend at least 4.17 hours a day on social media. Following the birth of social media users,
the growth of Filipino smartphone users also projected to grow from 40 million today to 90 million in
2021. (Ericsson Mobility Report, 2016). Thus, PayMaya and Gcash, companies currently leading the e-
payment solutions in the Philippines, is convincing consumers to shop online and use their services. Even
the Philippine Long-Distance Telecom (PLDT) are projecting that 30 million Filipinos will use the cashless
transaction system.

Yet, in the study conducted by Deutsche Bundesbank, cash is the most commonly used method
of payment. It accounts for a total share of 53% of all transactions. Assortment of socio-demographic
characteristics differentiate the amount of cash brought by different people. This entails that as the
amount of cash carried increases, the level of net household income rises. However, the cash share has
declined by almost 5% points. High-earners do not prefer it much, especially for them having higher
expenditures. Moreover, this drop is in line with the long-term trend in the market via cashless
transactions (Bundesbank, 2017).

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 A fact remains that Filipinos are still dependent on using cash and cheque mode of payments
(Ching 2017). Philippines is still striving to close the division of a technological gap among the Filipinos.
These split the nation into two opposing positions, the connected and the unconnected (Estopace, 2015).
The unconnected will remain in hunger for financial inclusion and heavily on technological inclusion.
According to Bangko Sentral ng Pilipinas (BSP), access to financial services will empower the poor to
manage their finances and will reduce their vulnerability of their financial distress, poverty, and debts.
BSP will prioritize financial inclusion in all sectors that will cater Filipinos by the year 2040 (Espenilla, 2017).
According to BSP Consumer Finance survey results, around 86% of Filipino households does not have a
bank account. BSP recognizes the opportunities bought by E-money platform or cashless transaction
system. This includes e-wallet, credit/debit cards, cryptocurrencies and such other payment methods that
do not use a physical cash. Beep Cards, a prepaid card for transporters, are part of the arrival of the
system. It has created opportunities and improvements in the country’s financial inclusion and unbanked
segment (Euromonitor International, 2017). The government is fully supporting the introduction of
cashless system. This leads the BSP that financial inclusion will able to provide inclusive growth and
become their main agenda. BSP believes that financial inclusion will provide the public their evolving
needs. Financial cards and payments continues to expand in all areas of the Philippines (Euromonitor
International, 2017). BSP is supporting the growing industry since they are pushing online interbank
transactions and the two dominant telecommunication companies are investing in the mobile payment
technology.

A research conducted by the Financial Times that most Filipinos are switching in using credit and
debit cards as their modes of payment. It shows that 39% are users of debit card, 34% credit card and a
31% who used only cash. This proves that there is a growing demand with the cashless system mode of
payment with this research conducted by the Financial Times. Most Filipinos use this kind of payment
method to purchase in online shop, some for money transfer, pay their bills and shop at the stores (Asian
Nikkei, 2017). The increase in people’s internet use paved the way for the rise of online payments for
purchasing. Even online banking application of the consumers made the services innovative. Online
payment instruments are not just supplementing traditional cashless payment instruments, but are
increasing in dominating them (Bundesbank, 2017).

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 1

On the other hand, generations, like people have personalities, and Millennials have begun to
forge because they are confident, self-expressive, liberal, upbeat, and open to change
(PewResearchCenter, 2016). The Millennials are making 25% of the world's total population (Visa
International). A psychologist studies Millennials and they are the tech-savvy generations of all time. They
are the generation that goes with the booming of the internet age (Connecting with Millennials, 2016).
According to the study by Visa, almost 69% of the Millennials are doing their online shopping through
mobile or computer systems. Filipino Millennials increasingly buy things online, but the payment method
used by some people is still in its old technology. Examples are cash-on-delivery, bank transfer, etc.
(Espenilla, 2017). Government is still positive about their opportunities brought by digital transactions and
the innovation of financial services of the Philippines.

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FT, 2017. Transactions being made via e-money.

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 Also, the role of the consumers has increased in this emerging era of marketing. Their attitudes
are being affected by the purchasing behavior, especially if they collide with the forces that make them
purchase. In the study of Soodan and Pandey, the customers’ positive attitude to a product or service and
their purchasing behavior are directly related. The more positivity the consumers put in the product or
service, the more will be more purchased. Nowadays, there are also consumers that are having a harder
time monitoring their money. Hence, there are some of them who are uneducated in managing their
financial assets, especially youth. Some of them does not take into significance the basic of financial skills,
such as budgeting to finance their needs especially in the long-term plans (Pillai, et al., 2010). Robert and
Jones (2001) even said that students have been raised in a culture that overspending is fine, and saving is
disdain.

Further, people are influenced with their preferences and behavior. They are social beings
interacting with other people. They tend to feel the belongingness from a certain group, which is
important to anyone, and these people feel complete. There are sets of rules and standards that members
should follow. Thus, big or small groups, family, social role, and even social status can greatly influence
someone’s spending behavior.

According to Grayson, Kotler, and Hibbard, reference group is the formal or informal social group
wherein people compare themselves and most likely to a group where they wish to be part of. This group
can influence someone's behavior and values because reference group becomes someone's standard, and
with that, they will do whatever the reference group does. It was stated that the most considered
influential group to a person is their family.

The first group a human has considered where they belong is their family. Family members play a
great role in someone's life specially building up a person by developing personalities and acquiring values
and principles from them (business jargon, 2012). BT lifestyle (2015) stated that the spending habits of
parents have a huge factor or effect on a child’s financial decision which they learned from their parents.
It was also stated that by the age of seven years old, money habits are already formed.

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 Lastly, social role and status of an individual can also someone’s spending behavior. O'Neil (2006)
says that every individual has their own role in the group, or role in the society which should be fulfilled,
still, social status is their position within the group. With this, they are expected to do what is expected
from them. For example, a father's role in the family is to provide for his family. Through this, he may have
a spending behavior that a single man does not possess.

On the study conducted by Chen and Volpe (1998), they said that ethnicity and consumer culture
also play a significant role on the spending and saving habits of college students. Their study focused on
the Western culture and African-American college students. It is said that students who are uneducated
in financial managements tend to make incorrect decisions and wrong opinions. There was a high
possibility of making different opinions and holding various opinions from the students which are
enculturated in different set of standards.

Further, Dugas (2001), said that youth are growing up in the culture of easy-credit spending. He
coined it as “culture of debt”. The youth about are in age of 18-35 years old. He said that youth are living
an expensive lifestyle. Youth are living in the culture of paychecks, credit cards, loans to pay for their
foods, technology and even cars. He said that youth are living an expensive lifestyle.

A study conducted by Ignacio and Martin (2012) about the relationship of the big five personalities
which are the ingredients that make up everyone’s personality (Pappas, 2017), and compulsive buying
behavior. Their study intends to identify several factors that contribute to the individuals who experience
being a compulsive buyer with the big five personalities which are Openness, Conscientiousness,
Extraversion, Agreeableness and Neuroticism. It shows in their study that most of the Filipinos have
agreeableness as a dominant personality trait. Furthermore, it is also shown that there is no significant
relationship between the demographic profile of the respondents and compulsive buying behavior. Along
with that, it is also shown that neuroticism which is a trait characterized by emotional instability; and
compulsive buying behavior has positive relationship which means people who experience emotional
instability are more likely to show a compulsive buying behavior, but this is not considered as a disorder.
They can also conclude that compulsive buying behavior is subsequently shaped by social forces.

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 Firstly, openness means being open to new ideas, being creative, original, intellectual, and curious.
This trait features characteristics such as imagination and insight, and those high in this trait also tend to
have a broad range of interests. People who are high in this trait tend to be more adventurous and
creative. People low with this trait are often much more traditional and may struggle with abstract
thinking (Cherry, 2018). Secondly, conscientious determine the level of self-discipline trait of a person.
These people are good in formulating long-term goals, organizing, and planning how they could achieve
these goals, and work diligently to fulfill their goals (Certo, S. T., & Certo, S. C., 2005; Zhao & Seibert, 2006).
Extraversion indicates how outgoing and sociable a person is. Peers‟ influences teenagers” identity
establishment is mirrored through impacted teenagers‟ consumption (Mangleburg, Doney, & Bristol,
2004). Based on Zuckerman (2001), extraversion sometimes referred to as social adaptability. Agreeable
individuals find it important for them to get along with other people and those people are usually warm,
friendly, and tactful. Agreeableness involves trust, altruism, kindness, and sympathy; and is in contrast
with self-centered antagonism (Costa and McCrae, 1992). Lastly, Neuroticism is a trait characterized by
sadness, moodiness, and emotional instability. People who are high in neuroticism tend to have more
depressed moods and suffer from feelings of guilt, envy, anger, and anxiety more frequently and more
severely than other individuals. Those low with this trait tend to be more stable and emotionally resilient.

Compulsive buying behavior may often occur when there is an unplanned purchase and the use
of shopping lists. According to a University of Michigan study published in the Journal of Consumer
Psychology, shopping or picking, and buying something found to be 40 times more effective at countering
sadness than just browsing (Shaw, 2012). According to Colin Shaw consumers like retail therapy,
sometimes when people stressed out, they go shopping. Buying things that a person wants to make him
less stressed and happy at least for a moment. On the other hand, research shows that the positive feeling
that shopping gives don’t last. Before a person shops, he feels excited, optimistic, and comfortable, but
after then, the person becomes post-purchaser; emotions change into a negative emotion called regret.
The post-purchase regret is caused by the internal feeling of a consumer called compulsive buying, a
decision stage of a consumer whether he is satisfied or not. The larger the gap between the product’s
performance to their expectations, the more dissatisfaction it will get that leads to cognitive dissonance
where a buyer feels discomfort caused by post-purchase.

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 There are compulsive buyers that intends to fill up their inner emptiness and to complete
themselves by overspending their money (Krueger, 1988). Yuchisum & Johnson states that compulsive
buying behavior is similar with the addictive behaviors that has some characteristics of alcoholism and
gambling. They have uncontrollable urges to purchase more than what they need. These people have a
deficiency of neurochemical serotonin, a neurotransmitter that helps you feel relaxed and happy
(Cambridge Dictionary). A German psychiatrist identified this behavior as oniomania, which means
uncontrollable desire to buy things (Kraepelin, 1915). This behavior has a positive and negative effect to
everyone. It is a pleasure that gives them a satisfaction of feeling so great, but consumers forget that it
also has its own consequences, whether it is about financial, emotional and psychological.

On the study of Sallie Mae, she presented that 84% of college students have credit cards and the
number of possession of credits cards is 4.6 in average (Robb and Pinto 2010). Youth see credit cards as
financial liberty from their parents (Leclerc, 2010). Whereas, switching behavior occurs that constitute an
important revenue source for many retailers, from credit card to cash payment, and vice versa. This
behavior shows a more complete understanding of how credit cards are used by diverse consumer
segments like in the increasing use and evaluation into other forms (Handelsman & Munson). Moreover,
consumers do not just decide on what product or service to avail, but also decide on what mode of
payment to use. All these influences are being considered: consumer demographics, alternative payment
instruments’ cost characteristics, situation specific transaction characteristics, policies on sellers’ payment
mode acceptance, and retail transaction size (Abdul-Muhmin, 2010).

In the study conducted by Braga, Isabella, and Mazzon (2013), it was mentioned that the level of
pain can affect the consumer decision in purchasing goods and services. It says in their study that the pain
of payment is a concept associated with the “credit-card-effect” which tell us the instant pain that every
consumer experienced in purchasing. Payment in cash gives the highest pain of payment to a person
compared to the other method of payment because cash is something we can physically see, touch and
count. The researchers also state that credit card has a lower pain of payment, therefore, credit card
disengage payments from the benefits that make a person feel like using a “play money”. Moreover, credit
card gives a desire fulfillment to the users that makes them not to consider the cost and make them spend
more. The researchers also mentioned that digital wallet can also create identical effects to a person’s
spending behavior, like the effects of credit card.

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 Nevertheless, Filipinos have some issues regarding the convenience and reliability of the cashless
system in different aspects. Rural areas face this challenge with different “buyers and sellers’ acceptance”
(Euromonitor International, 2017). There were issues with the inability of some accounts or bank holders
to do an online transfer from one bank to another bank. The incompatibility of different e-payments such
as Gcash and PayMaya, which are the most used e-money payment schemes by Filipinos, hinders the flow
of cashless payment in the Philippines (Asian Nikkei, 2017).

In addition, Marthur and George’s study targets the older people in their study about virtual
money. This shows the usage behavior pattern of older people with credit card spending. They’ve used a
large national sample of respondents from different age groups. With the commonly held belief that older
people do not use credit cards, the data suggested the need for practitioners to stop thinking about
consumer targets in terms of age and focus more on circumstances. These determine one’s likelihood to
use credit cards, contrary to that older adults using credit cards as frequently as younger adults when
circumstances and opportunities for consumption in both groups are similar (Mathur and George, 1994).

There are these non-holders that do not carry credit cards. Informal sources of information appear
to be more influential than mass media advertising in penetrating the market. They said that the
infrastructure of the country influences the usage and administration of credit cards. Hence, credit card
companies must modify their marketing and administrative procedures rather than following a
standardized approach. The most important reasons for using a credit card were “case of payment”,
followed by the “risk of carrying cash” (Barker, 1992).

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Synthesis

E-commerce in the Philippines is still in the developmental level that needs more study and
technological support to move forward and fully serve Filipinos. Philippine government aims for financial
inclusion for every Filipino, and they are supporting the idea of cashless transaction for efficiency and
convenience of every user. But this kind of transaction is still lacking from different aspects, especially the
security of the user and incompatibility of payments that hinders the growth of cashless transaction. As
the country progresses, technology advancements bring opportunities in the country. Even though
financial inclusion is still a hindrance in implementing cashless transaction nationwide, many Filipinos do
not have a bank account yet. Some Filipinos already favor cashless transaction, but some of them do not.

As Filipinos living in metros and cities already recognize the benefits of a cashless transaction
system, there are numerous factors that affect the spending behavior of people. But through the
development of new technologies and methods, habits and behaviors are also changing. Some FIlipinos
have issues regarding the convenience and reliability of the cashless system. But still, it gives a desire
fulfillment to the users that makes them not to consider the cost of spending.

16
 III. THEORETICAL FRAMEWORK

A. Overview of the Theoretical Framework

One of the hindrances in the growth of economy in the Philippines is the poor financial system of
the government. Bangko Sentral ng Pilipinas (BSP) discovered that Philippines must have a better system
to provide Filipinos a better access to wide range of financial services, calling it financial inclusion. But still,
the government and private sectors have initiatives towards the growth of cashless systems. To provide
the system, the BSP and private sectors need to establish quality of services, accessible to all clients, the
value of usage, and must be for the welfare of the Filipinos.

2
P. 4, The E-Money Platform_Opportunities for Digital Payments. Available via www.bsp.gov.ph.

17
 It has been argued by Musa Abdullahi Bayero that effective financial inclusion requires a lot of
resources, efforts, and a belief in the concept of all-inclusive financial access. It investigated the effect of
the business model of financial providers, awareness, enhanced customer value proposition, and
accessibility of payment infrastructure on financial inclusion. In her study, it shows that awareness,
customer value, and infrastructure have significant statistical association with financial inclusion.
However, among his three variables, infrastructure has the highest contribution, followed by customer
value and awareness in the order. Furthermore, she has found that the variables of cashless economy
partly influence financial inclusion of the working age adult. Specifically, it found awareness, payment
infrastructure and enhancing user value proposition to have significant impact on financial inclusion of
the working age adults (Bayero, 2015).

With the study of Michelle Renee D. Ching on the “Challenges and Opportunities of Electronic
Payment Systems in the Philippines”, she knew that users who are employed as a source of income fell
more secured and more trusting with the currently available electronic payment systems, are sure about
using the e-payment systems as their source of income. They feel more of the security because they know
that no one can get their money to them personally. Also, they were also able to save money, especially
with the use of debit cards and e-wallets. Moreover, employed people accepts more of the cashless
systems.

It has also been in her study that the devices used to transact online are all performing for
frequency, comfortability, and other activities involving transactions. There were no problems with the
security features and information given because they believe that all these will be safe. If there will be
occurrences of different problems, the platform will be informing them. Furthermore, the kind of online
transaction to be used affects the decision of the users, in concern more of their security (Ching, 2017).

18
 As we go to the system of cashless payment, there will be numerous threats and security
challenges between the user and the provider/company. Due to vulnerabilities to hackers, it can result in
the denial or theft services of users. This also affects brand recognition, having huge impact on revenue
and customer satisfaction. According to GlobalLogic, these are the security vulnerabilities of going
cashless: unsecured public WiFi, malicious third-party apps, absence of added security feature and/or
stolen device that is used to transact online. However, the shift to the latest standards of electronic
banking will also prevent fraud and theft information (Estopace, 2017). Having said that, Philippines is
prone to numerous hacking, and may not be as prepared compared to other countries. As stated by the
Global Cybersecurity Index (GCI), the country ranked 9th among Asia Pacific countries when it comes to
cybersecurity readiness in 2014 (Rappler,2015). There are numerous laws regarding cybersecurity but all
these only deals with the aftermath of the attack. Cashless system providers such as the government and
private entities must invest heavily on security, both in the short-term and long-term run (Rene Jaspe,
2015).

The Philippines was branded as the “texting-capital” of the world because of increasing in the
internet penetration and the growing number of mobile phone users in the country (Aguirre, 2017).
Although the country mobile users are increasing, the internet connection, which use in implementing
digital transaction solutions, is still slow. Online shopping is still undeveloped, due to factors such as slow
internet connections, poor transport infrastructure, and a mistrust of digital payment methods
(Euromonitor International, 2018).

Most consumers rely on prepaid mobile services and free data when accessing the internet via
their smartphones, as these services present more affordable and flexible options for those on low income
earners. Smartphone usage is expected to grow rapidly over the next few years, especially following the
roll-out of 4G, which began in 2017. This will drive a greater demand for e-commerce, social media,
messaging services, streaming services and a host of other apps. (Euromonitor International, 2018)

19
 Alhassan G. Abdul-Muhmin, in his study of “Transaction size effects on consumers’ retail payment
mode choice’, indicates that different variables on demographics affects significantly the choice of mode
of payment. He entails of the effects of gender and income, since all these revolve in the factors of making
their payment transaction. He also focused on the communications on retail. He argued that it also affects
the decision of the consumers, whether to transact with the use of cash or cashless system (Abdul-
Muhmin, 2010).

According to Efthymios Constantinides, the factors affecting the online experience of the users
are: the functionality of the system that includes the elements dealing with the its usability and
interactivity; the psychological elements intended for lowering the customer’s uncertainty by
communicating trust and credibility of the system; and the content elements including the aesthetic
aspects of the online presentation and the marketing mix. All these factors are being considered to the
decision-making process of the consumers (Constantinides, 2004). Even with the study of Chung-Hoon
Park and Young-Gul Kim, they’ve also the factors in affecting the commitment of the consumer in an online
system context. These are service considerations, satisfaction, trusts, and relational benefits.
Consequently, the new world of marketing considers new forms of interaction that will surely meet the
needs and wants of the online consumers, in effect of their attitudes and pre- and post-buying behavior.

20
B. Conceptual Framework

21
 When it comes to using different kinds of cashless method, there are different factors that can
affect the consumers’ buying behavior. Resources and capabilities are needed first to come up with the
factors and such assumptions. Before the cashless system has paved the way in the market, capacity to
finance and the idea of the system is needed to come up for a movie in developing a new idea. It includes
infrastructure management comes, operation components, processes, equipment, data gatherings, and
human resources, as part of the needs in the said stage. After this stage, different marketing strategies
are needed for the cashless system to be known in the market. As this system has been known, adaptation
to changes will come next.

Everything evolves, and innovation occurs because people want something that would help make
their lives easier. The advantages of using this system would really help people buy their needs easily with
just a swipe from their card or a punch from their mobile bank without worrying of losing money or being
robbed by a person next to him because of bringing a big amount of cash in his wallet. By time this cashless
system has already been known, the possibilities of consumer buying behavior changes occurs. These
changes can be seen from different factors or variables such as Social, Cultural, Personal Characteristics
of a consumer, and Psychological.

According from the study conducted by Ignacio and Martin (2012) the relationship of the big five
personalities which are the ingredients make up everyone’s personality (Pappas, 2017), and compulsive
buying behavior. The purpose of their study intends to identify several factors that contribute to the
individuals who experience being a compulsive buyer. This big five personalities are Openness,
Conscientiousness, Extraversion, Agreeableness, and Neuroticism, which affect the consumers’ way of
thinking when it comes to buying different things.

With the University of Michigan published in the Journal of Consumer Psychology, shopping or
picking, and buying something found to be 40 times more effective at countering sadness than just
browsing (Shaw, 2012). Moreover, consumers do not just decide on what product or service to avail, but
also decide on what payment to use. Nevertheless, people are having issues according to their
preferences.

22
C. Operational Framework

23
 Culture is a set of values and ideologies of a group in the community. The culture plays a great
role in someone's life on how an individual will behave and act in a certain place or a situation. Values,
principles, and traditions pass down to every generation of the family (Juneja). There are some people
who have their own principles in life having a huge effect on their spending habits. These people shop till
they lose all their energy in buying all the things they want until the time they’ve met their satisfaction
that they are craving in (Ignacio and Martin, 2012). Moreover, these people usually use credit card as their
mode of payment in satisfying their need of feeling the love and affection, belongingness, self-esteem,
autonomy, and self-actualization. Keeping this kind of attitude will be someone's tradition, a tradition that
will always be repeated and will never be missed out in their spending pattern or Behavior.

Social factors are the factors that are commonly seen in the society where a person live. These
varied behaviors influence the personal preferences of other set of individuals as they tend to perform
various activities. These behaviors under social factors are the influencers of an individual in one; like
family, reference group, and role and status of an individual. They have also become one of the facets
that may affect the lifestyle which can be connected to cashless system like the possible effects of this
system to the lifestyle of a person. One of the things that can help improve the implementation of this
system is through advertisement which is aimed mostly by the upper-middle class buyers. Philippines are
now starting to adapt the new ideas of e-money system not just on the Cards or ATM, but also the other
newly develop way of getting or depositing money easily. Banko Sentral ng Pilipinas (BSP) recognizes the
opportunities brought by the E-money platform or cashless transaction system including e-wallet,
credit/debit cards, cryptocurrencies and such other payment methods that do not used physical cash.
Beep Cards on the other hand, is a prepaid card for transporters, and are part of the arrival of the system.
It has created opportunities and improvements on the country’s financial inclusion and unbanked
segment (Euromonitor International, 2017). The government is fully supporting the introduction of the
cashless system. This leads the BSP that financial inclusion will able to provide the public their evolving
needs, inclusive growth, and making it their main agenda. Digital economy will help enhance our current
banking system, and there will be increased access to credit for people who did not fall in any banking
network which might help reduce poverty.

24
 Most Filipino used this kind of payment method to purchase in online shop, some for money
transfer, pay their bills and shop at the stores (Asian Nikkei, 2017) which may entail that the economy of
the country is successfully developing; this system changes how people live their lifestyle that can either
make their life easier or not. There are many holidays to celebrate which means many shopping and
spending to do, people don’t have to carry a wallet with money in it they can just use their mobile phone
or credit card for transaction. It is very hassle free and has already been adapted in urban and some of
rural areas of the country.

Buying things that a person wants makes him less stressed and happy for a moment. On the other
hand, research shows that the positive feeling that shopping gives don’t last. There are consumers
becoming a post-purchaser. After buying something, they often realize that they’re not happy from what
they bought and negative emotion occurs called “regret.” The post-purchase regret is caused by the
internal feeling of a consumer called compulsive buying, a decision stage of a consumer whether he is
satisfied or not.

The larger the gap between the product’s performance to their expectations, the more
dissatisfaction it will get that leads to cognitive dissonance where a buyer feels discomfort caused by post-
purchasing.

Cashless payments have emerged in all areas of global commerce, concerning safety and
convenience. This two has been the word of mouth of different consumers with different perceptions on
the said system. It became more integrated with the use of technology that probably caught the attentions
of all people. People use this system, not just to be part of the trend, but also to feel the ease and
convenience of using the system.

25
 IV. METHODOLOGY

A. Methodology

The purpose of this research is to determine the effects of cashless transactions on people’s
spending behavior. In this research, we found out that the result of the spending behavior of people
towards cashless transactions is a post-purchase behavior. This is meant to be “the stage of the Buyer
Decision Process when a consumer will take additional action, based purely on their satisfaction or
dissatisfaction”, as stated by Marketing 101.

The sampling technique that will be used for the study is the convenience sampling technique.
Convenience sampling technique is specific type of non-probability sampling method that relies on data
collection from population members who are conveniently available to participate in a study
(“Convenience sampling - Research Methodology”, 2012). Employees, students and faculties are not
chosen as part of the sample because of the availability to answer our survey. The population figure of
employees, students and faculties are extensive in size.

The research locale of the study will be in Taft campus of De La Salle-College of Saint Benilde,
located along Taft Avenue, Malate, Manila, where School of Management and Information Technology
(SMIT) students, faculties, and employees are situated. The survey will take them about 3-8 minutes to
complete the survey.

The respondents of this study are the students from different campuses. Faculty members and
employees of the Benildean community, specifically in Taft campus are also part of the members of the
respondents. The researchers will use the convenient sampling technique to conduct the entire research
with a sample size of 60 respondents.

26
B. Research Design

The research design that the researchers used is Causal Research. It is used to know the effects of
cashless transactions on people’s behavior and lifestyle. It is used in the study to determine the effect of
cashless system in the spending habits. With this method the researchers can show the characteristics,
attitude and behavior that the cashless system users possess compare to the pure cash users. Researchers
can identify if the cashless system has a direct impact to someone's spending habit once they shift from
this payment method. The causal research method can also show what factors such social, or
psychological that can affect the personality of the users.

The causal research design can help researchers draw conclusions whether cashless system can
really affect people’s spending behavior. Moreover, the researchers can see the other factors related to
their study such as the beneficial and non-beneficial of being a cashless user. Also, with this research
design the researchers can show the cause why some people still prefer cash transaction and why some
prefers cashless transaction. Furthermore, it can help to justify or to clarify our assumption which states
that post-purchase behavior is the behavior resulted from being a cashless system user.

In this research, the researchers will be conducting survey in the situation for the students,
faculties, and employees of De La Salle-College of Saint Benilde. This tool is to gather information, and to
assess the thoughts, feelings, and opinions of the following respondents. They will use related articles and
surveys to determine the factors that affects people’s behavior regarding cashless system of payment.

27
C. Research Approach

The researchers use deductive process wherein they used a certain basis from the theories that
they have come up and researched coming from different aspect of study and with the same subject. With
the widespread of the internet, cheques, credit cards, and debit cards has gained more publicity as well
as the acceptability of this development and implementation in the commerce and believed that it also
gained the usage of it in the buying process of a consumer. However, cash is still the most commonly used
method of payment, as the level of net household income increases, the amount of cash carried also
increases (Bundesbak, 2017). It will not be that far from the result of the study by an analyst; Filipinos are
still dependent in using cash and other mode of payment like cheques (Ching, 2017), this are because one,
they are still trying to connect people and technological gap. And two others may not truly adapt banking,
according to BSP Consumer Finance survey results, around 86% of Filipino households does not have a
bank account.

Contradict from the above study, according from an article of The Manila Times; The Visa’s latest
payment behavior study shows that four (4) out of ten (10) Filipino consumers carry more payment cards
in their wallets than five years ago and about five in 10 want to do away with cash from everyday life
altogether. Young adults between the ages of 18 and 24 display the strongest desire to eliminate cash
from their everyday life 55%, yet they are the most cash-dependent (The Manila Times, 2014).

28
D. Research Instrument and Techniques

For this study, the conduction of the research involved the use of structured questionnaire, which
has questions and answers set that has been used as a guide. The survey questions are divided based from
what the variables or factors used by the researcher to guide the respondents towards the satisfaction of
the research objectives. As for the distribution of the questions, the surveys was conducted through
Google forms and through physical survey paper from February 1, 2018 to February 17, 2018.

The researcher would be using a multiple-choice type of survey and will use the nominal scale. It
is an appropriate type of data. Moreover, applying this survey method would save the time in gathering
the data. The survey form is divided into three (3) parts:
● The 1st part is on the demographic profile of the respondents
○ Name,
○ Gender,
○ Age,
○ Status,
○ Employment Status, and
○ Questions asking for the department (for faculties and employees) and course
(for students) of the respondent
● The 2nd part is on the survey proper covering the following:
○ Social Factors having six (6) items (2 first questions will either be answered
whether the respondent is an employee or a student),
○ Psychological Factors having ten (10) items (4 questions will either be answered
whether the respondent is a cashless transaction user or not),
○ Personal Characteristics having 4 items, and
○ Cultural Factors having 5 items.
● The 3rd and the last part is on the survey’s additional information which will be answered
of what the respondent can suggest for the improvement of cashless system of payment
in the Philippines.

29
 V. DATA ANALYSIS, PRESENTATION, INTERPRETATIONS, AND CONCLUSIONS

A. Introduction

This chapter discusses the data analysis and findings from 60 forms (online) and questionnaires
(manual) completed by the students, professors, and staffs and other employees of the De La Salle-College
of Saint Benilde. The purpose of this study is to identify the effects of cashless transactions on people’s
spending behavior and lifestyle.

Forms and questionnaires were given to respondents aged 18 years and above. A total of 62
respondents completed the survey with sections such as:

● Part 1 - Demographic Profile, having

○ Name,
○ Gender,
○ Age,
○ Status,
○ Employment Status, and
○ Questions asking for the department (for faculties and employees) and course
(for students) of the respondent
● Part 2 - Survey Proper, having
○ Social Factors having six (6) items (2 first questions will either be answered
whether the respondent is an employee or a student)
○ Psychological Factors having ten (10) items (4 first questions will either be
answered whether the respondent is a cashless transaction user or not),
○ Personal Characteristics, having four (4) items, and
○ Cultural Factors, having five (5) items.
● Part 3 - Additional Information, asking the respondent of suggestions on how to improve
the system of cashless payments in the Philippines.

30
 B. Demographic Profile

This part of the survey covers the respondent’s gender, age, status, employment, department (if
working), and course (if student). This helped the researchers contextualize the findings and the formation
of appropriate recommendations.

i. Respondents’ ages and gender

Table V.i. Respondents’ ages and gender

Ages Gender Frequency Percentage
Male 15 25.0%
18 - 24 years old
Female 23 38.3%
Male 6 10.0%
25 - 34 years old
Female 4 6.7%
Male 6 10.0%
35 - 44 years old
Female 0 0.0%
Male 2 3.3%
45 - 54 years old
Female 0 0.0%
Male 3 5.0%
55 - 64 years old
Female 1 1.7%
65 years and Male 0 0.0%
older Female 0 0.0%
Total 60 100.0%

The respondents’ ages ranges from 18 years and above, with most of 18-24 years old as 15 for
male (25.0%), and as 23 for female (38.3%) of the same age.

31
ii. Respondents’ marital and employment status

With the respondents who took the survey, thirty-five (35) students are single having 58.3%.
There were three (3) professors, single, and seven (7) professors, married, garnering 5.0% and 11.7%,
respectively. On the other hand, out of fifteen (15) staffs and other employees, eleven (11) were single
and four (4) were married, garnering 18.3% and 6.7%, respectively.

Table V.ii. Respondents’ marital and employment status

Employment Marital Frequency Percentage Total
Single 35 58.3%
Students 58.3%
Married 0 0.0%
Staffs and other Single 11 18.3%
25.0%
employees Married 4 6.7%
Single 3 5.0%
Professors 16.7%
Married 7 11.7%
Total 60 100.0% 100.0%

Therefore, it shows that students with a total of 35, have 58.3% of all the respondents of the
survey. While, faculties were the least with a total of 10, having 16.7% of all the respondents of the survey.

iii. Respondents’ course (student) and department (employees)

As shown in Table V.ii., students and employed personnel (professors, staffs, and other employees
cover 58.3% and 41.7% of all the respondents, respectively.

The following tables will show the course of the student respondent and the department of the
employed personnel.

32
 Table V.iii. Students’ courses
Course Frequency Percentage
Export Management 18 51.4%
Computer Applications 7 20.0%
Human Resource Management 3 8.6%
Information Systems 2 5.7%
Digital Filmmaking 2 5.7%
Multimedia Arts 1 2.9%
Hotel, Restaurant, and Institution
2 5.7%
Management
Total 35 100.0%

Table V.iv. Employees’ departments

Staff and other

Department Faculties Percentage Percentage
employees
Export Management
7 70.0% 0 0.0%
Program
Human Resource
1 10.0% 1 6.7%
Management Program
Career Development
2 20.0% 1 6.7%
Program
Security 0 0.0% 8 53.3%
LRC 0 0.0% 4 26.7%
SGO 0 0.0% 1 6.7%
Total 10 100.0% 15 100.0%

As shown in the tables, it tells that there were 35 student respondents and 15 employed
respondents.

33
 Table V.iii depicts that most of the student respondents are taking up Export Management having
18 (51.4%) of the 35 student respondents. On the other hand, Table V.iv describes that most of the
professors who took the survey are in Export Management Program with a frequency of 7 (70.0%). It also
shows that most of the staffs and other employees who took the survey are in the Security Department
with a frequency of 8 (53.3%).

iv. Summary of the Demographic Profile

The Demographic Profile section of the survey entails the gender, age, marital and employment
status, section, and department of the respondents. Most of the respondents were female ages 18-24
years old (38.3%), mostly single (58.3%), and are taking up Export Management (51.4%). Least of the
respondents were also female ages 55-64 years old having 1.7%.

34
 C. Survey Proper

This part covers the Cultural factors, psychological factors, personal characteristics, and social
factors. The following mentioned factors were used as the variables of the entire research. These factors
add an impact on knowing the effects of cashless transactions on people’s spending behavior and lifestyle.

i. Cultural Factors

Question 1: Where do you generally do your shopping? (check all that apply)
❏ Supermarkets
❏ Bazaar
❏ Related Stores (branches, outlet stores, department stores, etc.)

Table V.iv. Shopping Place Male

Male
Supermarkets % Bazaar % Relates Stores %
Students 12 42.9% 3 60.0% 7 43.8%
Staff and other
7 25.0% 2 40.0% 5 31.3%
employees
Faculties 9 32.1% 0 0.0% 4 25.0%
Total 28 87.5% 5 15.6% 16 50.0%

87.5% of male respondents do their shopping in the supermarket and 42.9% of them are students.
50.0% of the male respondents shop in related stores while the remaining 15.6% shop in bazaar.

35
Table V.vi. Shopping Place, female
Female
Supermarkets % Bazaar % Relates Stores %
Students 18 94.7% 8 100.0% 18 78.3%
Staff and other
0 0.0% 0 0.0% 4 17.4%
employees
Faculties 1 5.3% 0 0.0% 1 4.3%
Total 19 67.9% 8 28.6% 23 82.1%

82.1% or 23 out 28 of female respondents prefer to shop in related stores, 67.9% of the
respondents prefer to do their shopping in the supermarket while the remaining 28.6% or 8 out 28 people
prefer to shop in bazaars.

Supermarket and related store are the most popular shopping place among the Benildean
community. As this both shopping place provide the necessities like food and clothing.

Question 2: Promotions and discount play a substantial role on my spending

❏ Strongly Agree
❏ Agree
❏ Disagree

Table V.vii. Effect of promotion and discounts on spending, male

Male
Strongly Agree % Agree % Disagree %
Students 7 46.7% 5 31.3% 0 0.0%
Staff and other 4 26.7% 7 43.8% 0 0.0%
employees
Faculties 4 26.7% 4 25.0% 1 100.0%
Total 15 46.8% 16 50.0% 1 3.1%

36
 16 out 32 or 50% male respondents agree that promotions and discount affect spending decision.
46.8% of the respondents said that it promotions and discounts play an extensive role in spending
decision.

Table V.viii. Effect of promotion and discounts on spending, female

Female
Strongly Agree % Agree % Disagree %
Students 9 90.0% 14 77.8% 0 0.0%
Staff and
other 0 0.0% 4 22.2% 0 0.0%
employees
Faculties 1 10.0% 0 0.0% 0 0.0%
Total 10 35.7% 18 64.3% 0 0.0%

Out of 28 female respondents, 18 agree that promotions and discount affect spending decision.
35.7% of the 28 female respondents said that promotions and discounts have huge impact on the buying
decision. Among the female respondents nobody said that promotions and discounts do not affect buying
decision.

Promotions and discounts offer the customers an encouragement to try or buy a certain product
or services. Certain promotions will influence the decision of the customer. Therefore, many of the
respondents agree that promotions and discounts made by companies can drive the customer buying
decision to buy or try the product.

37
Question 3: Latest fashions, fads, gadgets, and trends urge me to spend
❏ Strongly Agree
❏ Agree
❏ Disagree

Table V.ix. Drivers of spending, male

Male
Strongly Agree % Agree % Disagree %
Students 6 75.0% 1 14.3% 5 29.4%
Staff and other
0 0.0% 4 57.1% 7 41.2%
employees
Faculties 2 25.0% 2 28.6% 5 29.4%
Total 8 25.0% 7 21.9% 17 53.1%

53.1% or 17 out 32 male respondents said that latest trend in certain industry do not affect on
their buying behavior. 25.0% of the male respondents responded that it greatly affects their buying
decision. The remaining 21.9% said that it somehow affects their buying decision.

Table V.x. Drivers of spending, female

Female
Strongly Agree % Agree % Disagree %
Students 4 100.0% 16 100.0% 3 37.5%
Staff and
other 0 0.0% 0 0.0% 4 50.0%
employees
Faculties 0 0.0% 0 0.0% 1 12.5%
Total 4 14.3% 16 57.1% 8 28.6%

Among the female respondents 57.1% agree that latest trends somehow affect their buying
behavior while only 14.3% of 28 female respondents said that it has a huge impact on their buying
decision. 28.6% of the female respondents said that it does not affect their spending behavior.

38
 Trends refers to the standard of people in terms of technology, way of life, culture and way of
expressing different opinions and views. Most of the respondents who are affected by the change in
trends of fashion, gadgets and the likes are women. While men do not base their spending behavior on
what is the current trend or fashion of today but rather they are into what is standard or what is generally
acceptable.

Question 4: The most important thing for me is suitability to my culture, belief, tradition, and custom
on the goods and services that I will take.
❏ Strongly Agree
❏ Agree
❏ Disagree

Table V.xi. Effect of culture, traditions and practices on spending, male

Male
Strongly Agree % Agree % Disagree %
Students 4 40.0% 8 40.0% 0 0.0%
Staff and
other 3 30.0% 8 40.0% 0 0.0%
employees
Faculties 3 30.0% 4 20.0% 2 100.0%
Total 10 31.3% 20 62.5% 2 6.3%

Most of the male respondents agree that culture, traditions and beliefs may impact their spending
behavior. Only 2 out 32 respondents or 6.3% said that it does not influence what services or buy are they
going to purchase.

39
Table V.xii. Effect of culture, traditions and practices on spending, female
Female
Strongly Agree % Agree % Disagree %
Students 7 87.5% 16 80.0% 0 0.0%
Staff and
other 0 0.0% 4 20.0% 0 0.0%
employees
Faculties 1 12.5% 0 0.0% 0 0.0%
Total 8 28.6% 20 71.4% 0 0.0%

All female respondents said that culture, traditions and beliefs influence on what services or
product are they going to buy. 71.4% said that it somehow affects while 28.6% agree that it has huge
influence on their spending decision.

Culture play a substantial role in every aspect of people. Culture also play significant role in the
spending habits of people. As both table V.xi and table V.xii only few respondents disagree that culture
affect their buying behavior. On the other hand, culture, traditions and practices influence the buying
decision of most of our respondents.

Question 5: Family, friends and peers affect my buying decision

❏ Strongly Agree
❏ Agree
❏ Disagree

40
Table V.xiii. Effect of other people on buying decision, male
Male
Strongly Agree % Agree % Disagree %
Students 1 16.7% 9 60.0% 2 18.2%
Staff and other
3 50.0% 3 20.0% 5 45.5%
employees
Faculties 2 33.3% 3 20.0% 4 36.4%
Total 6 18.8% 15 46.9% 11 34.4%

46.9% of the male respondents agree that what other people say affect their buying decision.
Only 18.8% of the male respondents said that people certainly affect their buying behavior. 34.4% said
that no one influence their buying decision.

Table V.xiv. Effect of other people on buying decision, male

Female
Strongly Agree % Agree % Disagree %
Students 9 100.0% 13 86.7% 1 25.0%
Staff and other
0 0.0% 2 13.3% 2 50.0%
employees
Faculties 0 0.0% 0 0.0% 1 25.0%
Total 9 32.1% 15 53.6% 4 14.3%

53.6% or fifteen (15) out of twenty-eight (28) female respondents said that family, friends and
peers affect their buying decision. While 32.1% of the female respondents said that what their family,
friends and peers say affect their spending habits. Only 14.3% of the respondents said that no one
influence their buying decision.

Other people can influence a person buying decision. This is one of the motivators that can drive
a consumer to spend or to refrain from spending. However, in both male and female respondents their
buying habits or spending behavior can be affected by their family, friends or peers’ suggestions.

41
ii. Psychological Factors

Psychological factors tackle the mental factors that make the consumer decide what to use. This
will include their attitudes and behavior towards the thing or the situation itself, to fulfill his or her
satisfaction.

Under this factor, it handled ten (10) questions, in which four (4) of these will either be answered
whether the respondent is a cashless transaction user or not. This factor helped the researchers to
determine the effects and result of the buying behavior of the consumers with the use of cashless system
of payment.

Question 1: Are you a cashless transaction user (e.g. credit/debit card, e-wallet, cheque, etc.)?

Table V.x. Cashless and non-cashless transaction users

Male Female
Yes % No % Yes % No %
Students 6 35.3% 6 40.0% 14 93.3% 9 69.2%
Staff and other
3 17.6% 8 53.3% 0 0.0% 4 30.8%
employees
Faculties 8 47.1% 1 6.7% 1 6.7% 0 0.0%
Total 17 53.1% 15 46.9% 15 53.6% 13 46.4%

As shown in the table above, there are seventeen (17) male and fifteen (15) female cashless
transaction users, having 53.1% and 53.6%, correspondingly. Having said that, most of them were female
students with fourteen (14) as a result, having 93.3%. Least of them were a faculty member having 6.7%.

42
Question 2: If yes, why do you use this kind of payment system? (Check off any item that applies to
you.)

Table V.xi. Reasons of male cashless transaction users in using the system
Male
Discount/ Minimal
Convenience % cashback % risk % Security %
rewards incurred
(question to be answered by the users of cashless transactions)

Students 8 47.1% 4 66.7% 0 0.0% 2 66.7%

Staffs and
other 2 11.8% 0 0.0% 1 50.0% 0 0.0%
employees
Faculties 7 41.2% 2 33.3% 1 50.0% 1 33.3%
Total 17 54.8% 6 19.4% 2 6.5% 3 9.7%

Table V.xi depicts the reasons of male cashless transaction users in using the system. As shown, it
shows that students, staffs and other employees, and faculties mostly chose “Convenience” with eight (8)
votes having 47.1% for students, two (2) votes having 11.8% for staffs and other employees, and seven
(7) votes having 41.2% for faculties. Least on the votes were “Security” by students with 66.7%. Also, least
on the votes were “Minimal risk incurred” by staffs and other employees with 50.0%. With the results of
votes from the faculties, “Security” and “Minimal risk incurred” were the least both having only one (1)
vote with 50.0% and 33.3%, respectively.

43
Table V.xii. Reasons of female cashless transaction users in using the system
Female
Discount/ Minimal
Convenience % cashback % risk % Security %
rewards incurred
(question to be answered by the users of cashless transactions)

Students 13 92.9% 2 100.0% 5 71.4% 3 100.0%

Staff and
other 0 0.0% 0 0.0% 1 14.3% 0 0.0%
employees
Faculties 1 7.1% 0 0.0% 1 14.3% 0 0.0%
Total 14 50.0% 2 7.1% 7 25.0% 3 100.0%

Table V.xii shows the reasons of the female cashless transactions users in using the system. With
the following votes of students, it shows that “Convenience” is also their number one reason of usage,
same with the male students, garnering thirteen (13) votes with 92.9%. With the staffs and other
employees, “Minimal risk incurred” gathered only one (1) vote with 14.3%, while other options were not
being voted. With the faculties, they voted on “Convenience” and “Minimal risk incurred” both having
one (1) vote with 7.1% and 14.3%, respectively. While the other options, “Discount /cashback rewards”
and “Security” were not being voted.

44
Question 3: If no, what is your biggest concern around cashless payments? (Check off any of the item
that applies to you.)

Table V.xiii. Concerns of male non-users on cashless transactions

Male
Security (risk Poor Minimal
or identity % internet % risk % Costs %
theft) connectivity incurred
(question to be answered by the users of cashless transactions)

Students 5 33.3% 1 100.0% 1 50.0% 1 33.3%

Staff and
other 8 53.3% 0 0.0% 0 0.0% 2 66.7%
employees
Faculties 2 13.3% 0 0.0% 1 50.0% 0 0.0%
Total 15 48.4% 1 3.2% 2 6.5% 3 9.7%

Table V. xiii shows the concerns of male non-users on cashless transactions. Students mostly voted
for “Security (risk or identity theft)” having five (5) votes with 33.3%. Least were “Poor internet
connectivity”, “Minimal risk incurred”, and “Costs”, all having 1 vote. Staff and other employees mostly
voted “Security (risk or identity theft)” having eight (8) votes with 53.3%. Least is “Cost” having two (2)
votes with 66.7%. On the other hand, faculties also voted for “Security (risk or identity theft)” having two
(2) votes with 13.3%. Least is “Minimal risk incurred” having one (1) vote.

45
Table V.xiv. Concerns of female non-users on cashless transactions

Female
Security (risk Poor Minimal
or identity % internet % risk % Costs %
theft) connectivity incurred
(question to be answered by the users of cashless transactions)

Students 8 100.0% 1 100.0% 1 33.3% 0 0.0%

Staff and
other 0 0.0% 0 0.0% 2 66.7% 2 100.0%
employees
Faculties 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Total 8 28.6% 1 3.6% 3 10.7% 2 7.1%

Table V.xiv depicts the concern of the female non-users on cashless transactions. Students mostly
voted for “Security (risk or identity theft)” having eight (8) votes. Least were “Poor internet connectivity”
and “Minimal risk incurred” both having one (1) vote. Staffs and other employees mostly voted both on
“Minimal risk incurred” and “Security” having two (2) votes. On the side of the faculties, the following
options were not being voted since there were no female non-users of the cashless transactions.

46
Question 4: How often do you use cashless system of payment?

Table V.xvi. Times of use of the male users of cashless transactions

Male
More
More than Once or
Once a than
once a % % twice a % %
week twice a
week month
month
(question to be answered by the users of cashless transactions)

Students
(should only be
0 0.0% 3 50.0% 4 36.4% 4 40.0%
answered by 20
students)

Staffs and
other
employees 1 33.3% 1 3.2% 4 36.4% 4 40.0%
(should only be
answered by 4
employees)

Faculties
(should only be
2 66.7% 2 6.5% 3 27.3% 2 20.0%
answered by 7
professors)

Total 3 9.7% 6 19.4% 11 35.5% 10 32.3%

In this section, male user respondents said that they’ve been using cashless transactions “once or
twice a month” with an overall result of 35.5%. Moreover, 36.4% of male students and 40.0% of staffs and
other employees mostly use cashless transactions “once or twice a month” and “more than twice a
month.” On the other hand, 27.3% of the male faculties says that they mostly use cashless transactions
“once or twice or month.”

47
Table V.xvii. Times of use of the female users of cashless transactions
Female
More
More than Once or than
Once a
once a % % twice a % twice %
week
week month a
month
(question to be answered by the users of cashless transactions)

Students
(should only be
2 50.0% 8 100.0% 6 85.7% 7 100.0%
answered by 20
students)

Staff and
other
employees 1 25.0% 0 0.0% 1 14.3% 0 0.0%
(should only be
answered by 4
employees)

Faculties
(should only be
1 25.0% 0 0.0% 0 0.0% 0 0.0%
answered by 7
professors)

Total 4 14.3% 8 28.6% 7 25.0% 7 25.0%

In this section, female user respondents said that they’ve been using cashless transactions “once
a week” with an overall result of 28.6%. Furthermore, eight (8) of the female respondents says that
students are using cashless transactions “once a week.” Two female staffs and employees says that they’re
using cashless transactions “once a week” and “once or twice a month.” On the other hand, a female
faculty said that she’s been using cashless transactions “more than once a week.”

48
Question 5: What is your preferred mode of payment? (Check off any of the item that applies to you.)

Table V.xviii. Preferred mode of payment of the male respondents

Male
Credit/ E-
Cash % debit % wallet/mobile % Cheque %
card app
Students 11 42.3% 5 45.5% 6 75.0% 1 100.0%
Staff and
other 10 38.5% 1 9.1% 1 12.5% 0 0.0%
employees
Faculties 5 19.2% 5 45.5% 1 12.5% 0 0.0%
Total 26 83.9% 11 35.5% 8 25.8% 1 3.2%

Table V.xix. Preferred mode of payment of the female respondents

Female
Credit/ E-
Cash % debit % wallet/mobile % Cheque %
card app
Students 21 84.0% 17 94.4% 5 100.0% 4 100.0%
Staff and
other 4 16.0% 0 0.0% 0 0.0% 0 0.0%
employees
Faculties 0 0.0% 1 5.6% 0 0.0% 0 0.0%
Total 25 89.3% 18 64.3% 5 17.9% 4 14.3%

49
 Male and female respondents say that cash is their most preferred mode of payment with an
overall result of 83.9% and 89.3%, respectively. Moreover, male and female students say that they will
still prefer cash as a mode of payment having eleven (11) votes with 423% and twenty-one (21) votes with
84.0%, respectively. Male and female staff and other employees also prefer cash having ten (10) votes
with 38.5% and four (4) votes with 16.0%, respectively. Lastly, male faculties prefer both cash and
credit/debit card having five (5) votes. Further, a female faculty prefers credit/debit card as a mode of
payment with 5.6% of all the respondents.

Question 6-8: Usually how many times a month do you incur expenses totaling 1,000 and above?

Table V.xx. Number of times of male respondents incurring expenses totaling 1,000 -5,000 pesos
Male
More
2-3 4-5
% % than 5 % None %
times times
times
Students 9 50.0% 1 33.3% 0 0.0% 2 50.0%
Staff and
other 6 33.3% 1 33.3% 1 16.7% 2 50.0%
employees
Faculties 3 16.7% 1 33.3% 5 83.3% 0 0.0%
Total 18 58.1% 3 9.7% 6 19.4% 4 12.9%

50
Table V.xxi. Number of times of female respondents incurring expenses totaling 1,000 -5,000 pesos
Female
More
2-3 4-5
% % than 5 % None %
times times
times
Students 17 81.0% 1 33.3% 1 50.0% 4 57.1%
Staff and
other 4 19.0% 2 66.7% 0 0.0% 3 42.9%
employees
Faculties 0 0.0% 0 0.0% 1 50.0% 0 0.0%
Total 21 75.0% 3 10.7% 2 7.1% 7 25.0%

Tables V.xx and V.xxi describe the number of times of the respondents incurring expenses totaling
1,000-5,000 pesos. Furthermore, both male and female students incur expenses two (2) to three (3) times
with 50.0% and 81.0%, respectively. Even the male and female staff and other employees also incur
expenses two (2) to three (3) times with 33.3% and 19.0%, respectively. Male and female faculties incur
expenses more than five (5) times with 83.2 and 50.0% respectively.

Table V.xxii. Number of times of male respondents incurring expenses totaling 5,001-10,000 pesos
Male
More
2-3 4-5
% % than 5 % None %
times times
times
Students 0 0.0% 0 0.0% 0 0.0% 12 63.2%
Staff and
other 4 50.0% 0 0.0% 0 0.0% 7 36.8%
employees
Faculties 4 50.0% 3 100.0% 2 100.0% 0 0.0%
Total 8 25.8% 3 9.7% 2 6.5% 19 61.3%

51
Table V.xxiii. Number of times of female respondents incurring expenses totaling 5,001-10,000 pesos

Female
More
2-3 4-5
% % than 5 % None %
times times
times
Students 8 80.0% 1 25.0% 0 0.0% 14 87.5%
Staff and
other 2 20.0% 2 50.0% 0 0.0% 2 12.5%
employees
Faculties 0 0.0% 1 25.0% 0 0.0% 0 0.0%
Total 10 35.7% 4 14.3% 0 0.0% 16 57.1%

Table V.xxii and V.xxiv describe the number of times of the respondents incurring expenses
totaling 5,001-10,000 pesos. Furthermore, both says that both male and female students don’t incur
expenses with 63.2% and 87.5%, respectively. Seven (7) male employees say that they we’re not also
incurring expenses. On the other hand, there were four employees saying that they’re incurring those
expenses two (2) to three (3) times and four (4) to five (5) times. The other two (2) female employees say
that they don’t incur those sums of expenses also having 12.5% of all the female respondents. Four (4)
male faculties say that they incur those expenses two (2) to three (3) times. While a female faculty
member says that she incurs those four (4) to five (5) times.

52
Table V.xxiv. Number of times of male respondents incurring expenses totaling 10,001 pesos and above
Male
More
2-3 4-5
% % than 5 % None %
times times
times
Students 0 0.0% 0 0.0% 0 0.0% 12 52.2%
Staff and
other 1 16.7% 0 0.0% 0 0.0% 10 43.5%
employees
Faculties 5 83.3% 1 100.0% 2 100.0% 1 4.3%
Total 6 19.4% 1 3.2% 2 6.5% 23 74.2%

Table V.xxv. Number of times of female respondents incurring expenses totaling 10,001 pesos and above
Female
More
2-3 4-5
% % than 5 % None %
times times
times
Students 4 57.1% 0 0.0% 0 0.0% 19 90.5%
Staff and
other 2 28.6% 2 100.0% 0 0.0% 2 9.5%
employees
Faculties 1 14.3% 0 0.0% 0 0.0% 0 0.0%
Total 7 25.0% 2 7.1% 0 0.0% 21 75.0%

Twelve (12) and nineteen (19) male and female students say that they don’t incur expenses
totaling 10,000 pesos and above. Ten (10) male employees says that they also don’t incur those expenses.
Four students say that they incur those expenses two (2) to three (3) times and four (4) to five (5) times.
There were two (2) employees say that they don’t incur those expenses. On the other hand, five (5) male
faculties and a female faculty member say that they both incur expenses two (2) to three (3) times.

53
Question 9: I am convinced with the credibility of the products being sold online.

Table V.xxvi. Convincement of the male respondents with the credibility of the product
Male
Strongly
% Agree % Disagree %
Agree
Students 1 33.3% 9 52.9% 2 16.7%
Staff and
other 1 33.3% 2 11.8% 8 66.7%
employees
Faculties 1 33.3% 6 35.3% 2 16.7%
Total 3 9.7% 17 54.8% 12 38.7%

Table V.xxvi depicts the convincement of the male respondents with the credibility of the product.
Nine (9) students and six (6) faculties say that they “agree” with the credibility of the products being sold
online. It garnered 88.2% of all the respondents of the survey. Further, eight (8) staff and other employees
say that disagree.

Table V.xxvii. Convincement of the female respondents with the credibility of the product
Female
Strongly
% Agree % Disagree %
Agree
Students 1 100.0% 16 80.0% 6 85.7%
Staff and
other 0 0.0% 4 20.0% 0 0.0%
employees
Faculties 0 0.0% 0 0.0% 1 14.3%
Total 1 3.6% 20 71.4% 7 25.0%

54
 Table V.xxvii depicts the convincement of the female respondents with the credibility of the
product. Sixteen (16) female students and four (4) female staff and other employees say that they “agree”
with the credibility of the product being sold online. Further, a female faculty member “disagrees.”
Question 10: I am motivated to transact with sellers using cashless payment system.

Table V.xxviii. Motivation of the male respondents to transact with sellers through cashless system
Male
Strongly
% Agree % Disagree %
Agree
Students 1 50.0% 9 42.9% 2 22.2%
Staff and
other 0 0.0% 6 28.6% 5 55.6%
employees
Faculties 1 50.0% 6 28.6% 2 22.2%
Total 2 6.5% 21 67.7% 9 29.0%

Table V.xxviii shows the motivation of the male respondents to transact with sellers through
cashless system. A student and a faculty strongly agree, while nine (9) students and six (6) staffs and other
employees and faculties agree to transact. However, there were two (2) students and faculties and five
(5) staffs and other employees disagreeing.

Table V.xxvix. Motivation of the female respondents to transact with sellers through cashless system
Female
Strongly
% Agree % Disagree %
Agree
Students 3 100.0% 16 88.9% 4 57.1%
Staff and
other 0 0.0% 2 11.1% 2 28.6%
employees
Faculties 0 0.0% 0 0.0% 1 14.3%
Total 3 10.7% 18 64.3% 7 25.0%

55
 Table xxvix shows the motivation of the female respondents to transact with sellers through
cashless system. Three (3) students strongly agree, while sixteen (16) students and two (2) staffs and other
employees agree to transact. However, four (4) students, two (2) staffs and other employees, and a faculty
member are disagreeing.

Conclusion

The emergence of cashless system in the Philippines made the people use it for convenience.
However, there were some people still preferring cash for more security to prevent risk or identity theft,
even though some of them were also cashless system user. They were to use the system but not as much
as convinced and motivated to transact fully. Their preferences determine how committed are they with
the mode that they’ve been using. In return, there will be options for them whether to use the system or
not.

56
iii. Personal Characteristics

Under the personality characteristics’ factor, there are four (4) same questions for our
respondents. From the first question, almost all of them answered “Agree” both the female and male side.
From the table of the female, there are 64.29% students who answered “Agree”, while the remaining
7.14% students answered “Strongly Agree”, and 10.71% is “Disagree”. Faculties, on the other hand, have
answered 0% of “Agree”, 3.57% for “Disagree” and 0% for “Strongly Agree. And lastly for employees, there
are 14.29% who answered “Agree”, and both 0% who answered “Strongly Agree” and “Disagree”.

From the table of the male, there are 25% students who answered “Agree”, while the remaining
12.50% students answered “Strongly Agree”, and 0% is “Disagree”. Faculties, on the other hand, have
answered 18.75% of “Agree”, 6.25% for “Disagree” and 3.13% for “Strongly Agree. And lastly for
employees, there are 15.63% who answered “Agree”, and both who answered “Strongly Agree” and
“Disagree” have the same percentage of 9.38%.

Question 1: I would consider making payments using my mobile phone/smartphone in the future

Table V.xxx. Consideration of the male respondents in making payment through mobile phone/
smartphone in the future
Male
Strongly
% Agree % Disagree %
Agree
Students 4 12.50% 8 25.0% 0 0.0%
Staff and other
3 3.1% 5 15.6% 3 9.4%
employees
Faculties 1 9.4% 6 18.8% 2 6.3%
Total 8 25.8% 19 61.3% 5 16.1%

57
Table V.xxxi. Consideration of the female respondents in making payment through mobile phone/
smartphone in the future
Female
Strongly
% Agree % Disagree %
Agree
Students 2 7.1% 18 64.3%% 3 10.7%
Staff and other
0 0.0% 4 0.0% 0 0.0%
employees
Faculties 0 0.0% 0 14.29% 1 3.6%
Total 2 7.1% 22 78.6% 4 14.3%

Question 2: I do prefer using cashless payments in paying my bills and expenses (electricity, water, food,
etc.)

Table V.xxxii. The preference of the male respondents in using cashless system for paying the basic
expenses like electricity bills, water, etc.
Male
Strongly
% Agree % Disagree %
Agree
Students 6 18.8% 5 15.6% 1 3.1%
Staff and other
4 12.5% 5 15.6% 2 6.3%
employees
Faculties 3 9.4% 3 9.4% 3 9.4%
Total 13 41.9% 13 41.9% 6 19.4%

58
Table V.xxxiii. The preference of the female respondents in using cashless system for paying the basic
expenses like electricity bills, water, etc.
Female
Strongly Agree % Agree % Disagree %
Students 4 14.3% 14 50.0% 5 17.86%
Staff and other 0 0.0% 4 14.3% 0 0.0%
employees
Faculties 1 3.6% 0 0.0% 0 0.0%
Total 5 17.9% 18 64.3% 5 17.9%

The second question talks about the preference factor of using cashless payments in paying
expenses and bills like water, electricity, food, etc. The most number of answers for this question would
be the “Agree” for the female and a tie for male since both strongly agree and agree has the same score
percentage. Under the female table, there are a total of 50% students who answers “Agree”, 17.86%
“Disagree”, and 14.29% for “Strongly Agree”. Same goes with the employees, 14.29% “Agree”, and 0% for
both “Strongly agree” and “Disagree”. And lastly for faculties who votes more of “Strongly Agree” with
3.57% followed with 0% both “Agree” and “Disagree”.

From the table of the male, there are 15.63% students who answered “Agree”, while the
remaining 18.75% students answered, “Strongly Agree”, and 3.13% is “Disagree”. Faculties, on the other
hand, have the same answer of 9.38% for “Agree”, “Disagree”, and “Strongly Agree. And lastly for
employees, there are 15.63% who answered “Agree”, 12.50% “Strongly Agree” and 6.25% for “Disagree”.

59
Question 3: I do believe that mobile payment apps or cards are more convenient than bringing cash

Table V.xxxiv. The convenience of using mobile payment application or cards by the male respondents
Male
Strongly
% Agree % Disagree %
Agree
Students 5 15.6% 6 18.8% 1 3.1%
Staff and other
1 3.1% 6 18.8% 4 12.5%
employees
Faculties 3 9.4% 5 15.6% 1 3.1%
Total 9 28.1% 17 53.1% 6 18.8%

Table V.xxxv. The convenience of using mobile payment application or cards by the female respondents
Female
Strongly
% Agree % Disagree %
Agree
Students 3 10.7% 14 50.0% 6 21.4%
Staff and
other 0 0.0% 4 14.3% 0 0.0%
employees
Faculties 0 0.0% 1 3.6% 0 0.0%
Total 3 10.7% 19 67.9% 6 21.4%

The second to the last question talks about patronization of cashless payment because of its
convenience compared from bringing cash. Under the female table, there are 50% who answers “Agree”,
21.43%, 10.71% for “Disagree” and “Strongly Agree”. From the table of the male on the other hand, there
are 18.75% students who answered “Agree”, while the remaining 15.63% students answered, “Strongly
Agree”, and 3.13% is “Disagree”. Faculties, on the other hand, have more answered “Agree” with 18.75%,
9.38% “Strongly Agree” and 3.13% “Disagree. Moreover, for employees, there are 18.75% who answered
“Agree”, 12.50% “Disagree” and 3.13% for “Strongly Agree”.

60
Question 4: I do believe that cashless payment is safer to use rather than cash
Table V.xxxvi. Safety of the male respondents to use cashless payment rather than cash
Male
Strongly
% Agree % Disagree %
Agree
Students 3 9.4% 5 15.6% 4 12.5%
Staff and other
0 0.0% 8 25.0% 3 9.4%
employees
Faculties 3 9.4% 3 9.4% 3 9.4%
Total 6 18.8% 16 50.0%0 10 31.3%

Table V.xxxvii. Safety of the female respondents to use cashless payment rather than cash
Female
Strongly Agree % Agree % Disagree %
Students 1 3.6% 13 21.7% 9 32.1%
Staff and other
0 0.0% 2 7.1% 2 7.1%
employees
Faculties 0 0.0% 1 3.6% 0 0.0%
Total 1 3.6% 16 57.1% 11 39.3%

Finally, the last question talks about the safest to use for payment, which can either be cash or
cashless system. Below this segment, “Agree” is still the most chosen number for the choice of the three
(3) respondents with a total of 18.75% for both students and employees and 15.63% of the faculties who
answered “Agree” with the question followed with 15.63% “Strongly Agree” for students, 9.38% for
faculties, and 3.13% for employees. And lastly, 3.13% students, 3.13% faculties, and 12.50 employees have
answered “Disagree”.

From the table of the male on the other hand, there are 46.43% students who answered “Agree”,
while the remaining 3.57% students answered, “Strongly Agree”, and 32.14% is “Disagree”. Faculties, on
the other hand, have more answered “Agree” with 3.57%, and 0% for both “Disagree” and “Strongly
Agree”. Moreover, for employees, there are 7.14% who answered “Agree” and “Disagree” while 0% for
“Strongly Agree”.

61
Conclusion

People do innovations for making the lives of everyone easier just like the cashless system. This
system was developed and implemented for not bringing cash around of the people, waiting for the sake
of paying the bills using cash and waiting for a change. This innovation is what is exactly needed by the
people because digital technology is part of everyday life of an individual. People can buy online and pay
the product through connecting their visa card, MasterCard, or bank account to their shopping account.
But under this “personal characteristics” factor from the four (4) questions given by the researchers,
people may seem to have different perception and preferences but not as far from each other. Overall,
the most people say that they’re okay or fine with it, sometimes they disagree or strongly agree based
from their experience with the cashless system; or depending on their buying preference or behavior.

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iv. Social Factors

Under the social factor, there are 6 questions asked to the respondents. The first and second
question are related to each other, it asks the respondent the interval amount of their allowance and
salary. The third question is asked to determine the monthly average expense of the respondent. The last
few questions are asked to know what the respondent prefers to use as a mode of payment based on the
amount given in the questions.

Question 1: If working, how much is your salary?

Table V.xxxvii. Salary Range of the Male Respondents

Male
PhP
PhP PhP PhP PhP
40,000
5,000- % 10,001- % 20,001- % 30,001- % %
and
10,000 20,000 30,000 40,000
above
Students 1 50% 0 0% 1 3% 0 0% 0 0%
Staff and
other 1 50% 6 100% 4 13% 0 0% 0 0%
employees
Faculties 0 0% 0 0% 3 9% 1 100% 5 100%
Total 2 6% 6 19% 8 25% 1 3% 5 16%

In Table V.xxxvii where the salary range of the male respondents was shown. Most of the male
respondents have a salary range of PhP 20,001 – PhP 30,000 with 25% of 32 male respondents. Out of 32
male respondents - 19% have PhP 10,001 to PhP 20,000 salary range, 16% have a salary range of PhP
40,000 and above, 6% have a salary of PhP 5,000 to PhP 10,000, and only 3% have a salary range of PhP
30,001 – v 40,000.

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Table V.xxxviii. Salary Range of the Female Respondents
Female
PhP
PhP PhP PhP PhP
40,000
5,000- % 10,001- % 20,001- % 30,001- % %
and
10,000 20,000 30,000 40,000
above
Students 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
Staff and
other 2 100% 2 100% 0 0.0% 0 0.0% 0 0.0%
employees
Faculties 0 0.0% 0 0.0% 0 0.0% 0 0.0% 2 7%
Total 2 7% 2 7% 0 0.0% 0 0.0% 2 7%

In Table V.xxxviii is where it was shown the salary range of the female respondents. 7% of the
female respondents have a salary range of PhP 5,000 to PhP 10,000 and a salary range of PhP 10,001 to
PhP 20,000. Only 4% of the 28 female respondents have a salary range of PhP 40,001 and above.

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Question 2: If a student, how much is your allowance?

Table V.xxxix. Range Amount of the Allowance of the Male Respondents

Male
PhP
PhP PhP PhP PhP PhP PhP
40,000
500- % 1,001- % 5,001- % 10,001- % 20,001- % 30,001- % %
and
1,000 5,000 10,000 20,000 30,000 40,000
above
Students 4 100% 4 100% 4 67% 0 0.0% 0 0.0% 0 0 0 0
Staff and
other 0 0.0% 0 0.0% 2 33% 0 0.0% 0 0.0% 0 0 0 0
employees
Faculties 0 0.0% 0 0.0% 2 3.3% 0 0.0% 0 0.0% 0 0 0 0
Total 4 13% 4 13% 6 19% 0 0.0% 0 0.0% 0 0.0% 0 0.0%

Table V.xxxix present the data regarding about the range amount of the male respondents. Most of the male respondents have an
allowance ranging to PhP 10,001 to PhP 20,000 showing 19% of the 32 male respondents. And only 13% of the male respondents have allowance
ranging to PhP 500 to PhP 1,000 and allowance ranging to PhP 1,001 to PhP 5,000. No one in the male respondents have a allowance ranging to
PhP 10,001 and above.

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Table V.xl. Range Amount of the Allowance of the Female Respondents

Female
PhP
PhP PhP PhP PhP PhP PhP
40,000
500- % 1,001- % 5,001- % 10,001- % 20,001- % 30,001- % %
and
1,000 5,000 10,000 20,000 30,000 40,000
above
Students 12 100% 7 100% 4 80% 0 0.0% 0 0.0% 0 0 0 0
Staff and
other 0 0.0% 0 0.0% 1 20% 0 0.0% 0 0.0% 0 0 0 0
employees
Faculties 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0 0 0
Total 12 43.3% 7 25% 5 18% 0 0.0% 0 0.0% 0 0.0% 0 0.0%

Table V.xl present the data regarding about the range amount of the female respondents. Most of the female respondents have an
allowance ranging to PhP 500 to PhP 1,000 showing 43% of the 28 female respondents. Only 25% of the female respondents have allowance
ranging to PhP 1,001 to PhP 5,000 and 18% of the female respondents’ allowance ranging to PhP 5,001 to PhP 10,000. No one in the female
respondents have an allowance ranging to PhP 10,001 and above.

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Question 3: How much is your monthly average expenses including electricity bills, card bills, etc.?

Table V.xli. Range Amount of the Male Respondents' Monthly Average Expenses
Male
PhP
Below PhP PhP PhP
20,001
PhP % 5,001- % 10,001- % 15,001- % %
and
5,000 10,000 15,000 20,000
above
Students 9 64% 3 50% 0 0.0% 0 0.0% 0 0.0%
Staff and
other 4 29% 3 50% 2 100% 1 50% 1 13%
employees
Faculties 1 7% 0 0% 0 0.0% 1 50% 7 88%
Total 14 44% 6 19% 2 6% 2 6% 8 25%

Table V.xli presents the monthly average expenses of the male respondents where it shows that
mostly of the male respondents have a monthly average expense of below PhP 5,000 with 44% of the 32
male respondents. 25% of the male respondents have a monthly average expense of PhP 20,001 and
above, 19% of them have a monthly average expense of PhP 5,001 to PhP 10,000 and only 6% have a
monthly average expense of PhP 10,001 to PhP 15,000 and monthly average expense of PhP 15,001 to
PhP 20,001.

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Table V.xlii. Range Amount of the Female Respondents' Monthly Average Expenses
Female
PhP
Below PhP PhP PhP
20,001
PhP % 5,001- % 10,001- % 15,001- % %
and
5,000 10,000 15,000 20,000
above
Students 14 100% 4 50% 2 100% 1 100% 2 67%
Staff and
other 0 0.0% 4 50% 0 0.0% 0 0.0% 0 0.0%
employees
Faculties 0 0.0% 0 0.0% 0 0.0% 0 0.0% 1 33%
Total 14 50% 8 29% 2 7% 1 4% 3 11%

Table V.xlii presents the monthly average expenses of the female respondents where it shows
that mostly of the female respondents have a monthly average expense of below PhP 5,000 with 50% of
the 28 female respondents. 29% of the female respondents have a monthly average expense of PhP 5,001
to PhP 10,000, 11% of the female respondents have a monthly average expense of PhP 20,001 and above,
7% have a monthly average expense of PhP 10,001 to PhP 15,000 and only 4% have monthly average
expense of PhP 15,001 to PhP 20,001.

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Question 4: What mode of payment do you usually use for purchases less than 1,000 pesos?

Table V.xliii. Mode of Payment used by the Male Respondents when they purchase less than one thousand
pesos
Male
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 12 39% 0 0.0% 0 0.0%
Staff and other
11 35% 0 0.0% 0 0.0%
employees
Faculties 8 26% 1 100% 0 0.0%
Total 31 97% 1 3% 0 0.0%

Table V.xlii shows the mode of payment used by the male respondents when they purchase goods
and services amounting less than PhP 1,000. Cash is most used mode of payment by the male respondents
when they buy goods or services amounting less than PhP 1,000 showing 97% of the 32 male respondents
and only 3% of them uses credit/debit card when they buy less than PhP 1,000. No one in the male
respondents used e-payment when they purchase less than PhP 1,000.

Table V.xliv. Mode of Payment used by the Female Respondents when they purchase less than one
thousand pesos
Female
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 22 81% 0 0.0% 1 100%
Staff and other
4 15% 0 0.0% 0 0.0%
employees
Faculties 1 4% 0 0.0% 0 0.0%
Total 27 96% 0 0.0% 1 1.7%

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 Table V.xliv shows the mode of payment used by the female respondents when they purchase
goods and services amounting less than PhP 1,000. Cash is most used mode of payment by the female
respondents when they buy goods or services amounting less than PhP 1,000 showing 96% of the female
respondents and only 4% of them uses e-payment when they buy less than PhP 1,000. No one in the
female respondents used credit/debit card when they purchase less than PhP 1,000.

Question 5: What mode of payment do you usually use for purchases amounting 1,000-5,000 pesos?

Table V.xlv. Mode of Payment used by the Male Respondents when they purchase amounting one
thousand to five thousand pesos
Male
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 9 32% 3 75% 0 0.0%
Staff and other
11 39% 0 0% 0 0.0%
employees
Faculties 8 29% 1 25% 0 0.0%
Total 28 88% 4 13% 0 0.0%

Table V.xlv shows the mode of payment used by the male respondents when they purchase goods
and services amounting PhP 1,001 to PhP 5,000. Cash is still most used mode of payment by the male
respondents when they buy goods or services amounting PhP 1,001 to PhP 5,000 showing 88% of the 32
male respondents and only 13% of them uses credit/debit card when they buy PhP 1,001 to PhP 5,000.
No one in the male respondents used e-payment when they purchase PhP 1,001 to PhP 5,000.

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Table V.xlvi. Mode of Payment used by the Female Respondents when they purchase amounting one
thousand to five thousand pesos

Female
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 16 80% 7 88% 0 0.0%
Staff and other
4 20% 0 0% 0 0.0%
employees
Faculties 0 0% 1 13% 0 0.0%
Total 20 71% 8 29% 0 0.0%

Table V.xlvi shows the mode of payment used by the female respondents when they purchase
goods and services amounting PhP 1,001 to PhP 5,000. Cash is still most used mode of payment by the
female respondents when they buy goods or services amounting PhP 1,001 to PhP 5,000 showing 71% of
the 28 female respondents and only 29% of them uses credit/debit card when they buy PhP 1,001 to PhP
5,000. No one in the male respondents used e-payment when they purchase PhP 1,001 to PhP 5,000.

Question 6: What mode of payment do you usually use for purchases amounting to 5,000 pesos and
above?

Table V.xlvii. Mode of Payment used by the Male Respondents when they purchase amounting to five
thousand pesos and above
Male
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 6 30% 6 10.0% 0 0.0%
Staff and other
0 0.0% 0 0.0%
employees 11 55%
Faculties 3 15% 6 10.0% 0 0.0%
Total 20 63% 12 38% 0 0.0%

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 Table V.xlvii shows the mode of payment used by the male respondents when they purchase
goods and services amounting PhP 5,000 and above. Cash is still most used mode of payment by the male
respondents when they buy goods or services amounting PhP 5,000 and above showing 63% of the 32
male respondents and 38% of them uses credit/debit card when they buy PhP 5,000 and above. No one
in the male respondents used e-payment when they purchase PhP 5,000 and above.

Table V.xlviii. Mode of Payment used by the Female Respondents when they purchase amounting to five
thousand pesos and above
Female
Credit/debit E-wallet (PayMaya,
Cash % % %
card Gcash, etc.)
Students 7 12% 16 27% 0 0.0%
Staff and other
4 7% 0 0% 0 0.0%
employees
Faculties 0 0% 1 2% 0 0.0%
Total 11 39% 17 61% 0 0.0%

Table V.xlviii shows the mode of payment used by the female respondents when they purchase
goods and services amounting PhP 5,000 and above. In this table credit/debit card is the most used mode
of payment by the female respondents showing 61% of the 28 female respondents. While cash is only
39% of the female respondents says that they used cash as mode of payment when they purchase goods
or services amounting to PhP 5,000 and above and still no one uses e-payment to pay their purchased
goods or services.

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 All the data gathered from the survey shows that most of them still prefer to use cash as their
mode of payment whether if they are a high payer or not. Amount of purchase and amount of expense of
the individuals surveyed shows that it has little effect on the mode of payment they will use but most of
the people surveyed still prefer cash. It is logical that most them will use credit/debit card as mode of
payment when the amount of the goods or service they are purchasing but some still uses cash even
though if the amount is more than or equal to PhP 5,000. We can conclude that there is a low awareness
about e-payment and but an increasing market for debit and credit cards. There are lacking factors
regarding e-payment that people would not choose this mode of payment such as security. If there is
someone who will offer a better and safe e-payment, people will surely shift from debit/credit cards to e-
payment that will offer what exactly the market need and want.

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D. Additional Information

In the last part of the survey, we asked the respondents about their ideas on how to improve the
cashless system in the Philippines. There were some of them who gave their ideas, and some did not. Each
of them was very profound with their answers. Some of them mostly preferred improving first the
telecommunications and even the internet connectivity before coming up with the improvement of
cashless system. Some of them advised that cashless system providers should prioritize the security and
safety of the users’ information. Discounts, more promos to the public, and widening the coverage of its
service to scheduled areas were also been suggested. Even one of the respondents that Philippines should
have an Amazon store just like what the United States have.

The recommendations of students about cashless transaction system are focusing mainly on four
aspects: security, internet connection, promotions, and compatibility. First concern is security, students
fear to switch from to cashless system due to security vulnerability of important information about the
user. Students believed that there is not enough law or government policies that protect them from
various threats that cashless system implicate. They suggest improving security features cashless system
to become beneficial and provide ease of use among users. Improving security will avoid any threats and
as Ms. De Chavez said, will avoid any identity theft, provide better privacy for users and make better
transactions. Also, as a Human Resource Management student said, improving the security will make cash
users think of switching to cashless system and gain trust in using the system.

The next concern is improving the internet connect in the Philippines. As student answered, “...the
government must find ways on how to improve the internet connection first in the Philippines”. Most
cashless transaction is done digitally and through the internet. However, internet connection is not
generally accessible in the Philippines even in the metro or cities. Therefore, users cannot generally use
cashless system as a substitute to cash because poor access to internet connection.

Students suggest that cashless system providers give more promotions, discounts, and rebates.
Students like to see these features to gain loyalty and understand the benefits of going cashless. As Mr.
Africa said, providing promos such as rebates will make users more loyal to the system and can make the
students switch from cash to cashless.

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 Cashless system is not fully implemented in the Philippines. Only a few stores and companies
accept “tap and go” system, and e-payment system. General compatibility is one of the concern of
students they wish to address. Students recommend that more companies and stores recognize the
benefit of cashless system. Some students use cashless system like PayMaya, Gcash or Beep Cards but not
consistently as this system is only limited to some stores or services. One student, wish this system will
be compatible in almost all stores and services to adapt to this system and pave the way to innovation.

Staffs and other employees gave their suggestions on how to improve the cashless system in the
Philippines. (Julius, Chriss, et.al, Employed) Most of the response the respondents have given for cashless
system to improve, telecommunication provider must prioritize the service they are giving to their
customer by giving a fast internet connection and the security of the user's information not only for
telecommunication provider but also for cashless system provider. (Supan, Employed) One of the
respondent suggested that cashless provider should widen their coverage all over the Philippine specially
to secluded areas. (Cervantes, employed) Someone suggested that Philippines should have an amazon
store just like what U.S have in their country. (Charles, Employed) They suggested for discount and promos
to improve cashless system and (Julius, employed) suggested that Philippine government should focus on
the development and improvement of cashless system in the Philippines. (Nick, employed) Someone also
says that cashless payments online and in-store are secured, it’s just people have lack of trust and the risk
associated with the products online.

Even some of the faculty members of the Benildean community in Taft campus are also been
gathered of responses. Nine (9) of the ten (10) faculty respondents were cashless transaction users and
they have their own views on the said system. However, an Export Management faculty member was
before a cashless transaction user. But due to high interest rate, he cut using credit cards and stick on
using physical cash (Rocha).

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 The other nine (9) cashless transaction users were all suggesting reliable internet connection and
security against hacking. They were all users but all of them are still experiencing the same problems.
However, they still insist on using the system due to convenience, discount/cashback rewards, and
minimal risk incurred. An Export Management faculty member also mentioned that the government
should also support and back it up with a strong security measure to lessen fraud. However, one of the
problems of preventing fraud is using multiple, disjointed systems or tools, resulting in unnecessary
friction and poor customer experience. As this happens, it shows that fraudsters are of high experiences
to access the accounts of the customers (Fajardo).

According to Mr. Sherwin Maambong, a Human Resource Management faculty member and a
financial advisor in an insurance company, the system will be improved by investing more on the
telecommunications and information technology industry for the plan of Bangko Sentral ng Pilipinas (BSP)
with the financial inclusion here in the Philippines. Furthermore, the objectives of BSP aligns for the
betterment on the use of the consumers with the cashless system, since it aims for them to have access
to useful and affordable financial products and services to meet their needs, delivered in a responsible
and sustainable way.

Conclusion

The most number of suggestions for the improvement of cashless system of payment in the
Philippines given by all by the respondents are mostly focus on improving the internet connection and
telecommunication industry in the Philippines because these companies are the dependent provider of a
society to move, internet connection should be strong for the purpose of online transaction which is
commonly the basis of history transacted by the e-payment, card or mobile banking users.

Another suggestion that are mostly given by the respondents is a better security for the e-
payment, mobile banking or cards users this refers to the personal information which is commonly
required for a person to avail this kind of cashless system. Robbery can also occur in this kind of system
through hacking the system of the bank or the system of a person’s phone through unsecured WiFi.

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 VI. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

A. Introduction

This chapter presents the summary of the findings based on the research work undertaken, the
conclusions and the recommendations made as an effect of the survey and data gathered from this study.
Causal research method was utilized, and convenience sampling technique was used to gather data. The
method of questionnaire was used as an instrument to collect data from the respondents. Students,
faculties and employees were the respondents of the survey. The purpose of the study is to determine
the effects of cashless transactions on people’s spending behavior and lifestyle.

B. Summary of Findings
The study and the gathering of data reveals the following discoveries:

1. The respondents chose which of the following places do they generally do shopping: supermarket,
bazaar and related stores. In both male and female respondents, more than 50 percent of the
respondents chose supermarket and related stores. Bazaar is popular place for shopping in female
students. 28.6 percent of the female respondents answered bazaar while in men only 15.6
percent. On the 28.6 percent of the female respondents who answered bazaar as their shopping
place 100 percent of those who answered are students.
2. The effect of promotional discounts in the spending behavior based on gender, the males agree
that promotional discounts have huge impact on the spending behavior. 46.8 percent of the male
respondents answered strongly agree while only 35.7 percent of female respondents answered
the same. 71.4 percent of the female respondents said that latest trends in the market affect their
buying behavior. 53.1 percent of male respondents disagree that latest trends affect their buying
behavior.
3. Trends refers to the standard of people in terms of technology, way of life, culture and way of
expressing different opinions and views. Therefore, the result of the survey shows that most of
the respondents who are affected by the change in trends of fashion, gadgets, fads are women.
While men do not base their spending behavior on what is the current trend or fashion of today.

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4. Culture, traditions and beliefs are factors that influences their buying behavior of the Benildean
community. Out of 60 respondents, only 2 or 6.3% disagree that culture, traditions and belief
affect spending. The 2 respondents who disagree are male respondents and professors. Most of
the respondents agreed that their base their buying decision on what is their culture or traditions
or beliefs.
5. Other people can influence a person buying decision. This is one of the motivators that can drive
a consumer to spend or to refrain from spending. 34.4% of male respondents said that friends,
peers or family opinions does not affect their buying decision. However, in both male and female
respondents, more than 50.0% responded that family, friends, peers’ opinions can have an
influence in their decision to buy or acquire product.
6. The level of cashless transaction user based on gender, nearly 50.0 percent of both male and
female are cashless transaction user. Male faculties being the highest with a percentage of 47.1
percent while students being the highest among female respondents with percentage of 93.3
percent.
7. Physical Cash still is the most preferable mode of payment used by people and next is the debit
or credit card. It shows that expenses below Php 5,000 pesos are mostly paid by physical cash,
97.0 percent says that they used physical cash in paying their expenses amounting Php 1,000 and
below. For expenses Php 1,001 to Php 5,000, 79.0 percent were paid in physical cash, 21.0 percent
were paid using credit/debit card. For expenses Php 5,001 and above 51.0 percent of the
respondents were using cash, and 49.0 percent of the respondents were using credit/debit card.
8. The level of favorability of implementing cashless transaction system in the Philippines is quite
high. 83.9 percent of male respondents and 89.3 percent of the female respondents still favor
paying through cash. The percentage of combined male respondents who favors credit/debit card
and e-payment is 61.3 percent. For female respondents, the combined answers of those who
favors credit/debit card and e-payment is 82.1 percent. The relationship between preferring to
use cashless system in paying monthly utility bills, based on gender 17.9 percent of female
strongly prefer to use the system. While 40.6 percent of male respondents strongly prefer to use
cashless system in paying monthly bills.
9. From the survey conducted by the researchers, both male and female agreed about the
convenience of using mobile phone for making payments in the future. All the respondents’
answers agree, 43.33 percent of students who agree, 10 percent of the faculty, and 15 percent
for employees; this means that all the respondents are fine of using it.

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 10. The level of preference factor of using cashless payments in paying expenses and bills like water,
electricity, food, etc. from the answers of the respondents, most number of answers for this
question would be the Agree. 51.57 percent came from the student section and 15 percent from
the employees. On the other hand, from the faculty respondents, 6.67 percent strongly believed
that it would be more convenience to them if they use this kind of system for paying basic bills.
11. All the 3 respondents (Students, Faculties, and Employees) has the same highest of votes for agree
with a total of 60.00 percent; 33.33 percent, 10.00 percent, and 16.67 percent as follows. This
means that all the respondents believed that using mobile payment application is convenient to
use.
12. From the surveyed question, the level of safeness of cash and cashless one for payment, that can
either be cash or cashless system was asked by the researcher. All the respondents answers agree
with a total of 53.33 percent which by then believed that using cashless one is safer to use than
bringing a cash. 30.00 percent of the students, 6.67 percent of faculties, and 8.33 percent of
employees answered agree.

C. Recommendations
Based on the conclusions the following recommendations have been drawn:

1. Develop and improve the current cashless transaction system in supermarkets, store branch,
store outlets, department stores etc. because these are the most frequent shopping place among
all kind employment status, gender and age. We recommend accepting wide varieties of cashless
payments among these stores and shopping places.
2. Cashless transaction system is used for convenience of the user and easy access to their money,
with that we recommend to the different outlet store, supermarket etc. all over the Philippine is
to shorten the process undergo of the people who are paying cashless because based on
experience paying in cash is more faster than paying using debit/credit card so it shows that it is
more convenient to use cash than cashless transaction system. To shorten the process, we
recommend using fingerprint than signature and pin code in validating the data of the user, maybe
it is time to change the current equipment we used whenever we pay using our debit/credit cards.
We also suggest that they should create a system that will record all the transactions of the
cashless payers that store personnel don't need to keep a physical proof or record of the payment
and make their customer wait longer in the queue line in the cashier.

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3. E-payment solution companies should create a dynamic and effective marketing efforts to
persuade consumers to use e-payment platforms or cashless transactions system. Among the
marketing efforts that can be implement on the e-payment solutions are promotions, discounts,
rewards and cashbacks. Intensive advertisements on social media, televisions and phone
applications are way of developing awareness about e-payments. These marketing efforts can
greatly affect on the buying behavior of consumer as it can make the users to spend more which
is beneficial to the companies. Reach to users through text messaging, emails and the likes to
notify about the sales, rewards, discount that e-payment companies are implementing.
4. E-payment solution companies should advertise to consumers the importance of cashless
transaction system and how it can benefit the potential users especially among male consumers.
Male consumers are not trend driven customers. Trend among the innovation of payment system
is not effective to male customers. However, female consumers are more trend driven customers.
E-payment companies should emphasize the perks of implementing cashless transaction system
especially among male customers. The incrementation of the awareness about the significance of
cashless system in daily life, can be done through email blast, or text messaging blast. This are
already done by e-payment companies like PayMaya, Gcash, Visa, MasterCard. We recommend
e-payment solutions company to develop a strategic plan on how they can increase the awareness
and make the aged consumers to switch from using cash to become cashless user.
5. Develop and implement e-payments in bazaars especially in the current generations, exhibits or
bazaars are trend because of its cheaper selling of goods that in malls; exhibits like this is more
popular for female because they're more likely to shop more. Supermarket and related store is
the popular shopping place among the Benildean community. Male respondents prefer to shop
in supermarkets and women prefer to shop in related stores rather than bazaars and
supermarkets.
6. Consumers can be driven by recommendations, reviews and opinions of other people. On the
result of our survey, it proves that consumers buying decision can be influence by opinions of
others. Companies selling products or services should continuously innovate and promote quality
of product or service. This is one way of generating good reputation among customers. Promoting
of goodwill is also one of our recommendation to provide good opinions among customers.
Providing great experience about the services must be the utmost importance when building
consumer value or increase the consumer satisfaction in using the product or service a company
is offering.

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7. There is still a huge gap as the Philippines goes for a cashless transaction system. Many Filipinos
would still prefer cash payments while 2 out of 10 of Filipinos used cashless system this is because
of misunderstandings about the contactless payment and they’re still worrying about the security
of their personal information. Which is not possible because people can now do anything because
of technology nowadays, ordinary people with low profile can access anything online out of their
curiosity. That’s why strong security for personal information used for banking and payment
purposes should be develop and implement a specific department under the government that
will help secure their information.
8. Improved a better service by bank companies through developing and implementing new cashless
offers and rewards. Among Benildean community, culture, traditions and beliefs is one factor that
influences their buying behavior; so, by means of new offers and rewards, consumers may enjoy
and possibly recommend it to other consumers.
9. Expand the materials or equipment in using cashless system, this means that it should not only be
used in cards but also through mobile phones for their convenience. A person can no longer go to
an ATM machine to track down their payment or deposit history, they can just install bank
application signed under their account. Second is by using their mobile banking application for
payment it can either be through account transfer or just a tap of their phone to a
supermarket/convenience store’s scanner.
10. Develop a highly secured department to lessen the robbery incidents; this may happen not just
when a person carries a cash but also in cashless too. Hacking mobile accounts and bank’s system
may also means robbery. From the result of the survey, all the respondents believe that going
cashless is safer than carrying cash.
11. Create more payment center business for the card users. Using cards for paying the food that
every person eats, other miscellaneous fees, or the basic bills may often have a longer line that
the ones who pays with cash; this maybe because of a system error, slow acceptance by the
system, or card problem.

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 BIBLIOGRAPHY

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Cashless_Payment_as_an_Experience
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you/articleshow/55908649.cms
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A RESEARCH STUDY ON THE EFFECTS OF CASHLESS TRANSACTIONS ON PEOPLE’S SPENDING
BEHAVIOR

This research hopes to establish an understanding to the people of knowing what cashless system
of payment is. This survey is being conducted to also identify the factors of cashless transactions that
contributes to the changes on people’s behavior and lifestyle. This study will to recognize the benefits and
problems of cashless transaction systems in the society.

Findings in this study will contribute to the benefit of the society seeing that this system of
payment portrays a vital role in the world today. Rest assured that the shared information to us will be
safe! Thank you and God bless!

Members:

Cristobal, Mary Anne A. Sampan, Marie Tonie Q.

Malayang, Jefferson C. Solina, Micah Ericka A.

Part I. Demographic Profile

Name: _______________________________________________

Gender:
_ Male
_ Female

Age:
_ 18-24 years’ old _ 45-54 years’ old
_ 25-34 years’ old _ 55-64 years’ old
_ 35-44 years’ old _ 65 years’ and older

Status:
_ Single _ Widower
_ Married
Employment Status:
_ Employed _ Student
_ Not employed, but looking for a work _ Freelancer
_ Not employed, and not looking for work
_ Retired

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 Part II. Survey Proper

A. Social Factors

1. If working, how much is your salary?

_ 5,000-10,000 pesos
_ 10,001-20,000 pesos
_ 20,001-30,000 pesos
_ 30,001-40,000 pesos
_ 40,001 pesos and above

2. If a student, how much is your allowance?

_ 5,000-10,000 pesos
_ 10,001-20,000 pesos
_ 20,001-30,000 pesos
_ 30,001-40,000 pesos
_ 40,001 pesos and above

3. How much is your monthly average expenses including electricity bills, card bills etc.?
_ Below 5,000 pesos
_ 5,001-10,000 pesos
_ 10,001-15,000 pesos
_ 15,001-20,000 pesos
_ 20,000 pesos and above

4. What mode of payment do you usually use for purchases less than 1,000 pesos?
_ Cash
_ Credit/debit card
_ E-wallet (Paymaya, Gcash, etc.)

5. What mode of payment do you usually use for purchases less than 1,000-5,000 pesos?
_ Cash
_ Credit/debit card
_ E-wallet (Paymaya, Gcash, etc.)

6. What mode of payment do you usually use for purchases less than 5,000 pesos and above?
_ Cash
_ Credit/debit card
_ E-wallet (Paymaya, Gcash, etc.)

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B. Psychological Factors

1. Are you a cashless transaction user (e.g. credit/debit card, e-wallet, cheque, etc.)?
_ Yes
_ No

If yes, why do you use this kind of payment system?

_ Convenience _ Minimal risk incurred
_ Discount/cashback rewards _ Security
If no, what is your biggest concern around cashless payments? (Check off any item that applies
to you.)
_ Security (risk or identity theft) _ Buyer or sellers’ acceptance
_ Poor internet connectivity _ Cost

2. How often do you use cashless system of payment?

_ More than once a week
_ Once a week
_ Once or twice a month
_ Less than twice a month

3. What is your preferred mode of payment? (Check off any of the item that applies to you)
_ Cash
_ Netbanking
_ Credit/debit card
_ E-wallet/mobile app
_ Cheque

4. Usually, how many times a month do you incur expenses totaling to 1,000-5,000 pesos?
_ None
_ 2-3 times
_ 4-5 times
_ More than 5 times

5. Usually, how many times a month do you incur expenses totaling to 5,001-10,000 pesos?
_ None
_ 2-3 times
_ 4-5 times
_ More than 5 times

vii
 6. Usually, how many times a month do you incur expenses totaling 10,001 pesos and above?
_ None
_ 2-3 times
_ 4-5 times
_ More than 5 times

7. I am convinced with the credibility of the products being sold online.

_ Strongly Agree
_ Agree
_ Disagree

8. I am motivated to transact with sellers using cashless payment system.

_ Strongly Agree
_ Agree
_ Disagree

C. Personal Characteristics

1. I would consider making payments using my mobile phone/smartphone in the future.

_ Strongly Agree
_ Agree
_ Disagree

2. I do prefer using cashless payments in paying my bills and expenses (Electricity, Water, food, etc.).
_ Strongly Agree
_ Agree
_ Disagree

3. I do believe that mobile payment apps or cards are more convenient than bringing cash.
_ Strongly Agree
_ Agree
_ Disagree

4. I believe that cashless payment is safer to use rather than cash.

_ Strongly Agree
_ Agree

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D. Cultural Factors

1. Where do you generally do you shopping? (Check any of the item that applies to you)
_ Supermarkets
_ Bazaar
_ Related stores

2. Promotions and discount play a substantial role on my spending

_ Strongly Agree
_ Agree
_ Disagree

3. Latest fashions, fads, gadgets, and trends urge me to spend.

_ Strongly Agree
_ Agree
_ Disagree

4. The most important thing for me is suitability to my culture, belief, tradition, and custom on the
goods and services that I will take.
_ Strongly Agree
_ Agree
_ Disagree

5. Family, friends and peers affect my buying decision.

_ Strongly Agree
_ Agree
_ Disagree

Part III. Additional Information

What can you suggest for the improvement of cashless system of payment here in the Philippines?

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