Effect Of Mobile Wallets On Purchasing Habits Of DLSU Students

Introduction
With the influence of the digital age in the present generation, the usage of smartphones
has been rampantly rising. According to, Samsukha (2021) mobile payments have been rising
day by day which was highly influenced by the COVID 19 pandemic for contactless
transactions. Mercurio (2021) stated that the current mobile wallet market leader in the
Philippines is Gcash with an estimate of 51 Million registered users, three million digital
touchpoints, 69,000 cash-in, and cash-out agents, and 700 billers. Online payments have been
proven to increase convenience for their users, which in fact will continue to grow as the
generation progresses (Legters, 2021).
In line with this, according to Fritz (2017) purchasing habits and consumer behavior have
changed due to technology. As consumers started utilizing the use of different technological
platforms to spend their money, businesses need to be flexible enough in order to adjust to the
change in consumer behavior. Moreover, the change in consumer behavior due to mobile wallets
is also rooted in the decreased payment time compared to paying with cash (Liu et al., 2020).

Need for this Study

Past studies has addressed the issues of different payment methods and how it influences
consumer spending behavior (Diba et al., 2013). However, studies about digital money have been
rather scarce. Over the past decade, there has been explosive growth in mobile technology in
developing countries (Madan & Yadav, 2016). The continuous progress of technology, especially
smartphones has helped boost and elevate financial transactions, transforming a regular wallet
into a mobile one.
A mobile wallet is a virtual wallet that stores payment card information on a mobile
device (Kenton, 2022). Mobile manufacturing companies over the years have ventured into this
type of technology, with Apple Pay (starting with iPhone 6) and Samsung Pay. However, there
are also different third-party applications that serve as mobile wallets, such as Venmo, Google
Pay, and Paypal (Kenton, 2022). According to Statista (2021), the leading mobile wallet
application in The Philippines for the year 2020 is GCash with 49.4% of the market share,
followed by Paypal with 41.9%.
 The availability of mobile wallets as a mode of payment in all parts of The Philippines is
currently unknown, but its adoption by businesses, governments, and people are promising.
According to the Bangko Sentral ng Pilipinas (BSP) State of Digital Payment Report for the
year, 2020 saw that the share of digital payments both by value and by volume has increased to
17% and 25%, respectively from the year prior.
The growing trend of adopting mobile payment methods is believed to have brought a
change in both transaction amount and transaction frequency. According to data analytics of
AliPay, total transaction amounts rose to 2.4%, while the transaction frequency rose to more than
23% (Ciciora, 2018).

Background
Various studies have concluded that mobile wallets have a great impact on customers’
satisfaction when purchasing, although the purchasing behavior has not been studied yet. In the
study of Wulantika & Zein (2020), they have concluded that there is an impact of using mobile
wallets on the changes in consumer consumption behavior. Most studies, however, were focused
on the satisfaction of the customers when using mobile wallets. This study will therefore be
focused on the effects of mobile wallets on the purchasing habits of consumers.

Objective/s
1. To identify the most used mobile wallet of DLSU students
2. To determine the 3 common purchasing habits of DLSU students
3. To determine whether the use of mobile wallets has an effect on a consumer’s purchasing
habit/s
Research Questions
1. What is the most used mobile wallet of DLSU students?
2. What are the 3 common purchasing habits of DLSU students?
3. Does the use of mobile wallets have an effect on the purchasing habit/s of a consumer?
Methodology
The study will make use of the mixed-method research design wherein online surveys
will be handed out and focus group discussions will be done for the data collection. The primary
data of research will come from the online survey questionnaires that will be handed out by the
researchers to DLSU students which will contain several questions regarding their usage of
mobile payments and their personal purchasing habits. For the gathering of qualitative data, the
group will conduct a focus group discussion with at least 15 respondents divided into 5 FGD’s.
The respondents will only be limited to DLSU Students ages 18-23 who are using mobile wallets
such as Gcash, Paypal, Paymaya, Etc.. as their preferred mode of payment when it comes to their
transactions. On the other hand, the secondary data of the study will come from various
academic journals and academic literature that talks about the use of mobile wallets and its
possible effects on a consumer’s purchasing habits.

Research Timeline

Proposed Timeline

Activity Week 2 3 4 5 6 7 8 9 10 11 12 13
1

Title

Concept
Paper

Chapter 1-
Background
of The Study

Chapter 2

Chapter 3

Chapter 4

Finalization

Defense

Revisions
References
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https://www.bsp.gov.ph/PaymentAndSettlement/210616_BTC_Philippines_Report_DPS.

pdf

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Consumer in Their Buying Behavior?

http://www.anpad.org.br/admin/pdf/2013_EnANPAD_MKT1209.pdf

Ciciora, P. (2018, November). Adoption of mobile payment shifts consumer spending patterns,

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ets-is-surging-but-will-the-trend-hold/?sh=3f0ca6594980

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 https://www.philstar.com/business/2021/12/28/2150394/yearender-e-wallets-here-stay-fu

el-e-commerce-boom

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Blog | Mobile App, eCommerce, Salesforce Insights.

https://www.emizentech.com/blog/mobile-payment-statistics-facts.html

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https://www.statista.com/statistics/1258098/philippines-mobile-wallet-apps-market-share/

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