THE SURGE OF THE AVAILABILITY OF DIFFERENT E-WALLET

SERVICES AND ITS SIGNIFICANCE TO THE ENHANCEMENT OF

TRANSACTION IN FAST FOOD ESTABLISHMENTS IN LAS PINAS CITY

A Research
Presented to the Faculty of
Tourism and Hospitality Management
STI College Las Pinas

In Partial Fulfilment
of the Requirements for the Degree
Bachelor of Science in Hospitality Management

Aldrin Zyril D. Pamaong

Cherry Mae Baga-an
Christian John Sinel
Judelyn Mamades

<Date Approved>

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 CHAPTER 1

INTRODUCTION

The coronavirus (COVID-19) outbreak forced the Philippines to go into

lockdown. This resulted in many shocks to the actual economy, sales losses affected by
mandatory lockdowns, drinking places, etc. Amid the slowing economic activity,
COVID-19 has prompted a surge in e-wallets and an acceleration of digital transaction.

As lockdowns become the new normal, businesses and consumers are becoming
increasingly 'digital', sourcing and purchasing more goods and services online, increasing
e-wallets and other contactless means of payment due to the limits of physical mobility
and the risks of managing physical money. An E-wallet can save time and E-wallets
provide better mobile wallet security by preventing third parties from accessing
information that can be used to commit fraud or identity theft. With a mobile wallet, you
can pay immediately by holding your smartphone over the payment terminal and
confirming the purchase. Most transactions are completed in seconds. From this premise,
this quantitative study uses a survey to determine the possibility of the support of these E-
wallets in the restoration of the economy of Las Piñas City, and have been keeping
economies running and helping people reduce contact with viruses and any Fast-food
Establishments. In this study, by presenting in Fast Food Establishments in Las Piñas
online transaction services, your consumers will not be limited to those who are around
your offline store. You can present your product to anyone through the internet with no
worries. It is because the enhancement of transactions allows consumers to buy whatever
they want directly from your website or application and many Filipinos warmly accepted
e-wallets because they offer several advantages because e-wallets are faster, safer and
offer a more diverse set of services.

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Background of the Study

With the growing popularity of E-wallets, Fast food establishments are finding it
more convenient to accept payments by credit card and debit card. In order to make such
transactions easy, most fast-food establishments here in Las Piñas have started accepting
digital payment options like Gcash and Paymaya. This has made it easier for customers
who have a smartphone with an e-wallet app installed on it or an Android phone with a
similar app installed to pay for their orders.

Over the past years, consumers have increasingly used mobile payment methods
including Ewallet and mobile banking. People are purchasing more cellphones, which
makes it simpler for them to conduct online transactions. New payment methods have
been created as a result of the increase in demand for mobile applications, enabling
consumers to conduct financial transactions on their cellphones.

On the other hand, mobile payments still face a few difficulties, including fraud, security
worries, and low shop acceptance rates, because they enable users to make purchases
without using a conventional payment method like debit or credit cards.

Also, one of the advantages of using E – wallet is that customers can use it instead
of cash or credit cards. Customers will find it simpler to make purchases at these fast-
food chains. as a result, since they won't need to carry around a lot of cash to pay for their
orders, customers are safer since they can purchase without fear of losing money if they
misplace their wallets or credit cards.

Customers can also use their cellphones to make payments through e-wallets,
which is even more handy for them because there aren't any hard steps involved, unlike
when using cash or debit cards with pin codes.

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 Lastly, this study aims to identify the factors that affect the surge of availability of
different E wallet service and its significance in the enhancement of transactions in Fast
food establishments in Las Pinas. The study is conducted using a survey design and
quantitative approach. The study will be based on field observation, data collection using
a questionnaire and analysis of data using statistical tools

Research Questions

The study will try to answer the following questions:

1. What are the E-wallet services available in fast food restaurants in Las Pinas
City?
2. What factors affect a customer’s decision to opt for using E-wallet service(s) in
fast-food establishments transactions?
3. How often do people use E-wallet service(s) in fast-food establishments
transactions?
4. How does using E-wallet service(s) affect the customer’s transaction experience?

Significance of the Study

The study will be important to the following:

To the fast-food industry. As part of the sustainable food movement, this study may open
new perspectives for the fast-food industry as a whole. The fast-food industry may use
the results of this study to help enhance the efficiency of their day-to-day transactions by
adapting to a cashless payment system.

To the entrepreneurs. New or upcoming entrepreneurs, specifically the ones who are
trying to penetrate the fast-food industry, may use this study as a guide in choosing the
appropriate payment options for their new food business to further enhance customer
satisfaction.

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To the other Researchers. This study may help other researchers who aim to tackle
similar research titles. It may enhance their knowledge about the topic and give a new
perspective about it. If ever future researchers plan to make other studies that are closely
related to ours, they may learn important details and unlock new ideas through the results
of this specific study.

The objectives of the study are as follows:

1. To know what is the most used E-wallet service in fast food transactions.

2. To know its significance in implementing cashless transactions in fast food

establishments.

3. To know how it can enhance customer experience in fast food transactions.

Scope and Limitations

This study will be undertaken in Las Pinas City, more specifically the residents of
Pilar Village through survey questionnaires. It is limited only to the residents of Pilar
Village, all male and female, whose age bracket ranges from 20 – 30 years old.

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 CHAPTER II

REVIEW OF RELATED LITERATURE

Foreign Literature

Face-to-face interactions were limited during the COVID-19 pandemic because of

social isolation and other mobility issues. Due to this, many customers have chosen to
make digital transactions in order to lower their chance of contracting the virus. This
purchasing behavior opened the door for the expansion of online shopping. Purchase
transactions for products and services have moved online. Payments are currently done
through digital ways under this arrangement (Agur et al. 2020). Digital payments are any
of the several payment methods that utilize digital tools, including mobile payments,
mobile wallets, and electronic payments (Alkhowaiter 2020). As mobile technology has
advanced, these types of cashless payments have grown in popularity.

The COVID-19 epidemic has pushed enterprises and businesses into a digital shift
so that their operations may continue under the new normal. This increased dependency
on mobile and internet platforms as part of daily activities. The present public health
issue has materialized in the so-called "dual dangers" to the actual economy and the
financial system, claims a research by Carlsson-Szlezak, Reeves, and Swarts (2020).
While the real economy freeze impairs the flow of output and cash flows in individuals
and enterprises, financial sector downturns are marked by declines in capital formation
and investment. Innovation is a strategy to lessen the effects of shocks to the actual
economy and financial system (Carlsson-Szlezak et al., 2020). Payments and commerce
have been pushed towards digital processes through -wallets and other contactless
payment methods due to physical mobility limits and the dangers of handling real money.

Based on the notion that innovation is the key to cushion the damages of the
COVID-19 pandemic, particularly the damages on cash flow and production in

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households and businesses, the researchers arrived at the idea that e-wallets, as an
innovation, have a potential to mitigate the disruptions in businesses, and the innovation
output will further contribute to the economy. The proponents wanted to confirm if e-
wallets, in fact, can redefine business dynamics in the midst of the pandemic.

According to Alicia Kelso of Forbes, more than 27% of consumers have paid for
a quick-service meal via their smartphone. By 2020, consumers are expected to make
$726 billion in purchases using digital wallets like Venmo, PayPal and Apple Pay. They
also want to reap some rewards in the process. Accordingly, 61% of brands offered
rewards and monetary benefits in 2018, compared to 47% the year prior. It’s clear
consumers increasingly want to interact with their favorite brands via the smartphone
tethered to their hand. This trajectory illustrates one of the drivers behind Ibotta’s new
payments solution, called Pay with Ibotta. The feature enables consumers to make
payments directly from their Ibotta app and immediately earn cash back. So, when users
(“Ibotta Savers”) use Pay with Ibotta for a Chipotle burrito, for example, they enter the
full purchase total into the app and instantly receive a QR code to present at checkout.
They won’t have to wait or redeem receipts. Further, Savers who link their credit cards
through the app will now have the opportunity to stack their credit card rewards with
their Pay with Ibotta earnings. According to Bryan Leach, Ibotta’s founder and CEO, the
timing is right to launch this feature, as consumers have reached a point of “critical mass
awareness” when it comes to paying with their phone, but they’ve been missing a
rewards piece from adopting this behavior. There are 1,500 brands available on the Ibotta
app, which has nearly 30 million downloads and has delivered more than $500 million in
cumulative cash rewards to Savers. Of all brands available on the app, more than 30 are
signed up for the Pay with Ibotta feature at launch, including restaurant brands
Applebee’s, Olive Garden, Peet’s Coffee and Chipotle.

According to a study done by Anna Shatskikh in 2013, the rankings of the

variables that influence consumers' choices towards utilizing E-wallets in the restaurant
business were unexpected. Compatibility is the most important element, then utility, the
subjective norm, perceived security, and lastly prior experience with the use of E-wallet
servicess. In other words, customers are more influenced by contextual variables such as

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lifestyle compatibility, subjective norm, and utility than by technical considerations such
as security and prior experience.

According to the 2020 study of Wulantika and Zein, information technology has
altered how the actual and virtual worlds interact nowadays. In the digital era,
technological advancements exist to address many difficulties. Technology is become a
part of daily life because to the amenities available. A common technological item
utilized by the general population is a mobile application. Because smartphones and
mobile devices are increasingly commonly utilized by the public, mobile apps are
thought to develop more quickly. Financial technology is a service industry that employs
information technology with an emphasis on mobile technology to increase the
effectiveness of the financial system. There are several firms in Indonesia that offer
electronic wallets or electronic payments. Additionally, a sizable number of people utilize
it. They also stated that it is anticipated that the introduction of the electronic wallet and
electronic payments would make it easier for the community to conduct financial
transactions, even if we already know that these processes are highly complicated in the
modern period. E-wallets may be used to pay for all of the community's requirements,
including those for power, the internet, and other services, in addition to buying and
selling.

Local Literature

A study conducted by Kim in 2019 found that the rising use of digital
communication technology has elevated online interaction to a crucial component of the
contemporary guest experience in the hospitality sector. For an understanding of client
interaction in the online world, the flow theory is particularly crucial.

Several studies recognized that digital payment methods are more cost-effective
than cash payments (Meyer et al., 2020; Estioko et al., 2019; Zimmerman et al. 2014).
Electronic payment methods such as mobile point-of-sale (mPOS), tap-to-phone
solutions, scan-to-pay technologies (QR codes), and E-wallets have low initial investment
and low costs of maintenance. This will increase financial accessibility and inclusion.
(Meyer et al., 2020). Electronic payments also prove to be more cost-effective for the
recipient. According to Estioko (2019), the COVID-19 pandemic has unexpectedly

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accelerated the development and adoption of digital payments. Even prior to the current
health crisis, the Philippine government has invested to strengthen the country's financial
technology systems and promote financial inclusion. The Bangko ng Sentral ng Pilipinas
(2020) has promoted policy initiatives for the nationwide transition from a cash-heavy to
cash-light society, leveraging digital innovations to establish a payment system for all
Filipinos. With the dramatic disruptions in the national financial landscape due to the
COVID-19 pandemic, what was previously a medium- to long-term digitalization
program has been integrated into the forefront of crisis mitigation.

The e-wallet service has grown rapidly over the past two years as the cashless
economy has expanded. According to the Bangko Sentral ng Pilipinas, by the end of
2020, one in five financial transactions—including bill payments and money transfers—
will be performed using e-wallets. digito finance corporation CEO Nikita Saigutin told
the BusinessMirror that the government's initiatives to move the nation toward a cashless
economy are one of the primary reasons for strong e-wallet penetration. Nearly 9 million
e-wallet accounts were registered in the Philippines in 2017. The use of mobile wallets
tripled in 2020.

According to Gilliland in 2017, eateries and cafes are emphasizing cashless

transactions due to it naturally fitting with other advancements in different technological
advancements throughout the years. To put it in illustration, restaurants are now actively
introducing new mobile applications that customers can use for a quicker payment
method while also being able to access rewards and digital content aside from the
restaurant service itself.

According to Statista, this number should reach 75.5 million by 2025. Filipinos
transferred more than P2.39 trillion using e-wallets in 2020 than they did in 2017, an
increase of over 149%. According to the same report, the Philippines' percentage of
fintech businesses that provide mobile wallets is already rated third in 2022, after the
lending and payment industries. According to Saiguitin, e-wallets are widely embraced
by Filipinos since they provide a number of benefits. E-wallets provide a wider range of
services and are quicker, safer, and more secure than conventional payment methods.

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 According to Conrad Gaddi of WAZZUP.PH, Jollibee Foods Corporation (JFC)
along with all of its food and restaurant brands in the country has begun piloting an
interactive mobile ordering system via chatbot, with a seamless payment experience
powered by PayMaya. Customers in select areas can now use their credit, debit, or
prepaid cards and their PayMaya e-wallet accounts to pay for their favorite food items
and meals via the Facebook Messenger channels of Jollibee, Burger King, Chowking.
Mang Inasal, and Red Ribbon-which are all running on beta version. In 2019, this
partnership also helped pave the way for the launch of digital payments through self-
ordering kiosks in Jollibee, Burger King, and Chowking stores via the One by PayMaya
Point-Of-Sale Device, and now has expanded its cashless payment option in 300 Jollibee
stores. Soon, Jollibee Food Corporation will also roll out PayMaya's Digital Invoice
solution when ordering online via its various brand's delivery websites or through their
respective hotlines, allowing customers to receive an invoice with a payment link via
SMS or email so they can also pay using any card or using their PayMaya account. Aside
from enabling the acceptance of the cashless payment of various Jollibee Food
Corporation brands, PayMaya has also partnered with the Jollibee Group Foundation to
allow them to receive donations from anywhere around the world via the
#OneAgainstCOVID19 campaign website (pymy.co/jollibee; or through the Pay Bills
function of the PayMaya app. Through its PayMaya app and wallet, it is providing
millions of Filipinos with the fastest way to own a financial account with over 40.000
Add Money touchpoints nationwide more than double the total number of traditional
bank branches in the Philippines combined its Smart Padala by PayMaya network of over
3000 partner agents nationwide serves as last-mile digital financial hubs in communities,
providing the unbanked and underserved with access to services

Despite the flourishing industry of electronic-payment (e-payment) systems in

recent years, cash transactions continue to dominate the Philippines. According to Remo,
one factor affecting this diminutive growth rate is the Country’s low bank population.
However, electronic transactions have great potential given that the Country’s mobile
phone usage rate is high. Nevertheless, there are still many challenges to overcome for
the industry to become successful such as infrastructures, regulations concerns, and buy-
in from cost. However, only a few users from this population utilize banking’s digital

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features due to the lack of awareness and trust in terms of security (Lopez, 2018). The
BSP aims to change these figures and increase digital banking usage by 20 percent by
2020. According to the BSP, E-payment systems in the Philippines mostly do not require
a bank account and can be easily accessible using mobile phones. Systems such as GCash
and PayMaya, make it easier for Filipinos to use digital payment platforms. Eliminated
the requirement of bank accounts, e-payment systems have a strong potential in a low
bank country like The Philippines. Previous studies on e-payment mainly used the
technology acceptance model (TAM) as a framework. However, TAM has limited
measures on consumer attitude. This study is grounded on Theory of Reason.

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