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Abstract: This study aims to explore factors affecting the Filipino consumers’ adoption of e-payment
systems. Spearman correlation analysis was used to analyze data collected from 83 employees of
a company’s Marketing Department who use online shopping payments. The results of the study
showed that the significance of the constructs namely perceived risk, trust, security, use of web-
assurance seals, perceived usefulness, and perceived advantage were inadequate to determine its
relationships with the intention to adopt e-payment systems. Therefore, the factors used in this study
are not the only drivers that would influence customers’ decisions.
Abstrak: Studi ini bertujuan untuk mengeksplorasi faktor-faktor yang memengaruhi konsumen
Filipina dalam mengadopsi sistem pembayaran elektronik. Analisis korelasi Spearman digunakan
untuk menganalisis data yang dikumpulkan dari 83 karyawan Departemen Pemasaran perusahaan
yang menggunakan pembayaran belanja online. Hasil penelitian menunjukkan bahwa signifikansi
dari konstruk, yaitu perceived risk, trust, security, use of web-assurance seals, perceived use, dan
perceived advantage tidak memadai untuk menentukan hubungannya dengan niat mengadopsi
sistem pembayaran elektronik. Oleh karena itu, faktor yang digunakan dalam penelitian ini
bukanlah satu-satunya faktor pendorong yang akan memengaruhi keputusan pelanggan.
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cost. However, only a few users from this the actual number of e-payment accounts
population utilize banking’s digital features dropped to 8.6 million from 11.4 million
due to the lack of awareness and trust in in 2018, according to the BSP’s Financial
terms of security (Lopez, 2018). The BSP Inclusion Survey.
aims to change these figures and increase As a result, this study proposes to
digital banking usage by 20 percent by investigate the factors affecting Filipinos’
2020. adoption to e-payment systems. The
E-payment systems in the Philippines researchers would like to identify what
mostly do not require a bank account and can factors are important for Filipino to adopt
be easily accessible using mobile phones. such a system so that developers of digital
Systems such as GCash and PayMaya, make payment services can provide better systems
it easier for Filipinos to use digital payment to Filipino and encourage them to use and
platforms. Eliminated the requirement of create a habit of digital transactions?
bank accounts, e-payment systems have This research aims to identify certain
a strong potential in a low bank country factors that affect the adoption of Filipino
like The Philippines. Previous studies on consumers to use electronic payment
e-payment mainly used the technology systems similar to the previous study by
acceptance model (TAM) as a framework. Özkan, Bindusara, and Hackney (2010).
However, TAM has limited measures on This study’s findings will be compared with
consumer attitude. This study is grounded the results reported in previous literature
on TAM and Theory of Reasoned Action to to see whether they are compatible with
include a more appropriate explanation of the results applied in the Philippine
e-payment system adoption. environment.
According to BSP data, more Filipinos The technological acceptance model
were adopting e-wallet or e-payment (TAM) framework is a good lens to analyze
systems more than credit cards in 2018. software packages, using this for e-payment
Platforms such as GCash and PayMaya are systems will result in limited prediction of
option for Filipinos to do digital financial consumer attitude as this does not have any
transactions without physical cash and productivity measures. However, perceived
credit cards (Zoleta, 2021). Additional data usability and perceived ease of use constructs
also show that more Filipinos are becoming from this model are important. That is why
aware of contactless payments and see the theory of reasoned action theory (TRA)
such services’ benefits. The Visa Consumer is more suitable for discussing the adoption
Payment Attitudes study revealed that of e-payment systems as it can be extended
80 percent of respondents were aware of to more circumstances. This framework can
e-payment systems (Visa, 2019). However, be used to consider other factors influencing
despite the Filipino consumers’ awareness the use of e-payment systems, such as social
of the benefits of digital payment platforms, influences (Özkan, et al., 2010).
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(Özkan, et al., 2010).
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convenience in terms of time and location are (Mun, Khalid, & Nadarajah, 2017). In
significant to consumers (Daştan & Gürler, addition, ease of use and usefulness impact
2016). In the study of Chakiso (2019), the customer satisfaction and the decision to
research showed a correlation for both users continue using mobile payment applications
and non-users in terms of trust, ease of use, (Humbani & Wiese, 2019).
compatibility, and relative advantage, which H5a. There is a relationship between
has the strongest positive relationship. intention to adopt an e-payment
However, for the two groups of users, system and web assurance seals
perceived risk was not a significant factor in (WB).
terms of adopting a mobile banking system. Regarding providing assurance seals
H3. There is a relationship between to minimize the impact of perceived risks,
intention to adopt an e-payment a study in US suggests that consumers had
system and perceived advantage a strong positive impact on the perceived
(PA). effectiveness of Web Assurance Seal
The trust transfer process has a positive Service (WASS) in e-commerce. On the
impact on the continued use of mobile contrary, it is not the same for Korean
payments by satisfaction, which is an important consumers, and WASS did not influence
factor in the continued purpose. Trust can their e-commerce intention and transaction
also be positively influenced by perceived (Kim, Yim, Sugumaran, & Rao, 2016).
similarity and perceived entitativity between Agag, et al. (2018) study confirmed that
online and mobile payments (Cao, Yu, Liu, WASS positively affects their perceived
Gong, & Adeel, 2018). Based on Chiu, Bool, trust by hotel customers who book online.
& Chiu’s (2017) study, mobile banking non- H5b. There is a relationship between
adopters found that initial confidence had a perceived risk and web assurance
significant influence on their intention to use seals.
online banking services. Finally, previous studies found that a
H4. There is a relationship between positive relationship existed between the
intention to adopt an e-payment decision to adopt e-payment system and
system and perceived trust (TR). its usability. Research by Molina-Castillo,
Additional causal relationships were Lopez-Nicolas, & de Reuver (2020) found
found which were not present in the that the key factors in mobile payment
Technology Acceptance Model. These intention are perceived functional value
include experience and computer playfulness and facilitating conditions that promote it.
as factors driving the third-party e-commerce The study of de Luna, Liébana-Cabanillas,
payments and computer anxiety (Chen, Sánchez-Fernández, & Muñoz-Leiva (2018)
2018). Perceived usefulness is the most determined that usefulness attitude and
significant factor in consumers’ decision to perceived security are key factors influencing
use a mobile payment service in Malaysia e-payment systems’ intention to use.
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Table 2 Age Profile of Respondents payment platforms users, which means they
Age Frequency Percentage (%) use the systems multiple times per month. 69
19-23 4 4.8
24-28 21 25.3
out of 83 respondents identified themselves
29-35 44 53.0 as frequent users, while 14 from the total
36-42 12 14.5
Above 42 2 2.4
respondents identified themselves as seldom,
Total 83 100.0 meaning that they only use the platforms once
Source: Primary Data
or twice in three months.
Table 3 Gender Profile of Respondents
Most of the respondents previously
Gender Frequency Percentage (%) experienced problems using an online
Female 49 59
payment system but they identified them
Male 34 41
Total 83 100 as insignificant. Seventeen out of the total
Source: Primary Data respondents cannot recall if they encountered
Table 4 Educational Attainment of Respondents any problems and 13 respondents stated
Educational Frequency Percentage (%)
that they never encountered any problem.
attainment For those who encountered problems,
Postgraduate 17 20.5
issues were mainly caused by delays in the
Undergraduate 66 79.5
Total 83 100
application’s processing and usability.
Source: Primary Data Among the factors, security, trust in
Descriptive Analysis and Normality Test payment method, and usability were the top
All the respondents answered that they priority when paying online. Meanwhile, most
were able to do online transactions prior to of the respondents consider perceived advantage
the survey and therefore they proceeded to as their 4th out of 6th priorities, followed by web
the questionnaire’s consequent questions. assurance seals in 5th priority and perceived risk
Most of the respondents used such a service in the 6th priority.
for online shopping and restaurant payments. Shapiro-Wilk tests were conducted in
The respondents are the most frequent digital order to determine whether the distributions
of Intention to Adopt, Perceived Risk,
Table 5 Summary of Online Transactions Using
Security, Trust, Use of Web Assurance
e-Payment
Seals, Perceived Advantage, and Perceived
Online Transaction Count
Usability were significantly different from a
Online shopping 68
Payments in restaurants 48 normal distribution. The following variables
Payments in retail stores 22 had distributions which significantly differed
Food delivery 20
from normality based on an alpha of 0.05:
Bills payment 7
Payments in groceries 4 Intention to Adopt (W = 0.52, p < .001),
Payments in convenience stores 3 Perceived Risk (W = 0.90, p < .001), Security
Airline booking 1
(W = 0.84, p < .001), Trust (W = 0.87, p <
Insurance payments 1
Payments for services through PayPal 1 .001), Use of Web Assurance Seals (W =
Source: Primary Data 0.87, p < .001), Perceived Advantage (W =
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Camille Jeremy B. Raon, Myra V. De Leon, Rayan Dui. Adoption of E-Payment ...
0.68, p < .001), and Perceived Usability (W Age Female Male Average Mean
= 0.84, p < .001). The results are presented in 36-42 4.29 4.00 4.17
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Camille Jeremy B. Raon, Myra V. De Leon, Rayan Dui. Adoption of E-Payment ...
coefficients above .50 indicate a large according to the most important and ease
effect size (Cohen, 1988). The correlations of use only came in third after security and
were examined based on an alpha value of trust.
0.05. There were no significant correlations The distribution of the data gathered
between any pairs of variables. from the sample is not normal. All the
constructs are below p >0.05, they deviate
DISCUSSION
from a normal distribution and cannot be
The results from the data gathered considered statistically significant.
show that the participants from the sample Hypotheses Results
are well-aware of e-payment systems and
H1 cannot be accepted since the
use such systems for different transactions significance level is not enough to reject
such as online shopping and payments for the null hypothesis. The values show that
restaurants and retail stores. intention to adopt an e-payment system
The respondents experienced problems and perceived risk has a small correlation.
while using these systems mainly due to The result is consistent with the results
delays in processing and user-friendliness, of the anchor article. Also, Özkan, et al.
but most found it not significant. Some (2010) found no connection between the
of the respondents cannot recall if they intention adopting an e-payment system
encountered such situations and others and perceived risk. In previous studies,
have not yet encountered any problems. perceived risk was significant. It influences
This refers to that respondents probably not perceived trust and customer satisfaction
considering delays and user-friendliness as and not intention to adopt (Hossain, 2019).
their top factors in adopting an e-payment H2 was also found not enough for
system. This also shows that it would be a the null hypothesis to be rejected. There
challenge to determine the problems they remains no connection between intention
encountered since many respondents cannot to adopt an e-payment system and security.
recall their issues while using the platforms. The correlation between the two is also
Respondents asked to rank the factors small. The finding of the study is contrary
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to the results of Özkan, et al. (2010) where of web assurance seals, which makes the
it was found that the significance value e-payment system less risky.
is enough for the null hypothesis to be H6 is not accepted, and the hypothesis
rejected. Still, despite the significance, the remains that there is no relationship
correlation between them was also small. between intention to adopt an e-payment
The null hypothesis remains to be system and usability. In another Southeast
consistent in H3. The proposed hypothesis Asian country, perceived usefulness is the
cannot be accepted due to the p-value of most important factor in the intention to use
greater than 0.05. The anchor article had a mobile payment service, as per the study
opposite results and found that a relationship of Mun, et al. (2017).
exists between intention to adopt an The results of the study are somewhat
e-payment system and perceived advantage consistent with the previous studies done
even though the result also showed a negative using the same model. Özkan, et al. (2010)
relationship between the two. Prior studies found the relationship between security,
focused on mobility and convenience in perceived advantage, perceived trust, use
terms of time and location (Daştan & Gürler, of web assurance seals and usability, and
2016) to determine the perceived advantage intention to adopt an e-payment system.
compared to the factors used in this study, Similar to the study mentioned, this study
which only focused on ease of use and time also found no relation between the intention
and money savings. to adopt and perceived risk.
As with the findings of Özkan, et Previous studies stated in the literature
al. (2010), H4 was also rejected, and this overview considered these constructs as
study showed that there is no connection significant and stated their concerns regarding
between intention to adopt an e-payment this. Contrary to this study’s result, the
system and perceived trust. As opposed to participants did not find any significant issues
prior literature, such as the study of Chiu, they encountered that can possibly affect
et al. (2017) on mobile banking, trust is perception towards the constructs.
significant in using online services even for
non-adopters of mobile banking. CONCLUSION
H5 was also rejected, and in contrast In a country where cash remains a king
to the previous results, this study found no like the Philippines, digital platforms for
relationship between intention to adopt an payments will find it challenging to be widely
e-payment system and web assurance seals. used in transactions. Filipinos still have low
Özkan, et al. (2010) found a positive strong populations even in terms of owning bank
linear correlation between the two. On the accounts since most still prefer the tangibility
other hand, in H5b, there is a correlation of physical money. Despite the study results,
between the low risk of credit card fraud the same model can still be used in the larger
in online transactions and the presence sample size to determine a better judgment
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of the population. Since the sample size Chakiso, C. B. (2019). Factors affecting Attitudes
in the study is relatively small, it cannot be towards Adoption of Mobile Banking: Users
and Non-Users Perspectives. Emerging
concluded that the model is not an effective
Markets Journal, 9(1), 54-62.
way to determine the factors affecting the
Chen, J. K. (2018). The influence of behavioural
adoption of e-payment systems. intention on third-party e-commerce payment.
Future research can also investigate South African Journal of Economic and
correlation of intention to adopt and owning Management Sciences, 21(1), 1-10.
a bank account. Most of the e-payment Chiu, J. L., Bool, N. C., & Chiu, C. L. (2017).
Challenges and factors influencing initial trust
services do not require a bank account and
and behavioral intention to use mobile
can be easily accessed using a few personal banking services in the Philippines. Asia
information without the need to go to a Pacific Journal of Innovation and
physical establishment. Subsequent studies Entrepreneurship, 11(2), 246-278.
can also consider the frequency of using Cohen, J. (1988). Statistical power analysis for the
e-payment transactions compared to the behavioral sciences (2nd ed.). Hillside, NJ:
Lawrence Erlbaum Associates.
frequency of physical transactions. To better
Daştan, İ. D., & Gürler, C. (2016). Factors Affecting
understand the consumers who use and will
the Adoption of Mobile Payment Systems:
most likely use e-payment systems, case An Empirical Analysis. Emerging Markets
studies can also be considered in a more in- Journal, 6(1), 1-16.
depth study to better determine their attitude De Luna, I. R., Liébana-Cabanillas, F., Sánchez-
outside the close-ended questions used in Fernández, J., & Muñoz-Leiva, F. (2018).
Mobile payment is not all the same:
questionnaires.
The adoption of mobile payment systems
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