The Readiness of Young Professionals in Gingoog City

using E-payment transaction

______________________________________________________________________

A Research paper

Presented to the

Faculty of the Department of Bachelor of Science

In Business Administration of Christ the king College

Gingoog City, Philippines

In Partial Fulfillment

Of the Requirements for the Subject

Marketing Research

By:

Johanna Krystal Salazar

Lowela Cabana

Kenneth C. Gabriel
Joerick Epan

Reymar Salvador

Stephen Balaba

I. INTRODUCTION

E-payment system is a way of making transactions or paying for goods and services

through an electronic medium without the use of check or cash (Konior, 2016). The

rapid growth of technology slowly changed the world into cashless payment, through

enhancing payment systems and payment processing devices to increase, improve and

provide secure on e-payment transactions. It became easier and convenient for

businesses to use e-payment systems where it directly transfers into bank or e-wallet

accounts.
 The birth of electronic money is seen as the new modern lifestyle, in which

businesses and consumers are both benefited since technology becomes essential in

society and daily life. The increase of using mobile phones helps to push in adapting

online payment and has predicted online transactions will reach USD 4,769,370m by

the end of the year 2020 (Tondon, 2020). The growing use of internet based-banking

and shopping has seen the growth of various e-commerce payment systems using the

different type’s e-payments Credit card, Debit card, Smart card, E-wallet, Netbanking,

Mobile payment (Ray, 2017). These developments are forcing customers to deal with

technology based e-payment modes and by using persuasive marketing that convince

customers to use electronic money (Widayat, 2020). Philippines was an early mover in

digital payments with the launch of mobile money in 2001 and show the overall rate in

digital payments is estimated to be 27-30%, compared to 25% in emerging Asian

countries (Massally, 2019). Gcash is the biggest e-payment platform in the Philippines.

It has over 20 million registered users and can be used at approximately 63,000

physical and online stores, and among its competitor Paymaya deploy contactless

payments via QR method in City of Manila and the top quick-service restaurants in the

country like Jollibee, McDonald’s, and KFC have all adopted the end-to-end digital

payments (Devanesan, 2020).

The traditional mode of payment that involves personal contact between buyers and

sellers are rapidly changing in electronic payment systems that utilize some form of a

digital financial. Consumers will be highly advantageous using e-payment, when it

transact goods and services since it is a convenient and hassle free experience with no

cost, and plenty of time saving benefits. This was also supported by the Philippine
government where it issued regulations for banks on e-banking services and e-money

issuance. As the Philippines slowly develop technology, e-payment is one of the

systems that can move the country into the modern era.

The basis of this study is to identify if the consumers in Gingoog City are ready to adapt

E-payment transactions. Considering the City’s development and increasing population,

this gives researchers an opportunity to know the capability of the consumers to

transact using an e-payment method

II. Research Problem

This research aims to study about the readiness of Gingoog City using e-payment.

Below are the following guided questions:

General:

Do the young professionals in Gingoog City are ready in using e-payment transactions?

Specific:

What is the percentage of the young professionals in Gingoog City who are using e-

payment transactions?
What are the e-payment transactions that the young professionals in Gingoog City

prefer to use?

How often do the young professionals in Gingoog City use the e-payment system?

What are the advantages and disadvantages of e-payment transactions to young

professionals in Gingoog City?

Research Objectives

This study aims to achieve the following goals:

General:

To determine if then young professionals in Gingoog City are ready to adapt with the

use of e-payment transactions.

Specific:

To measure the percentage of the young professionals in Gingoog City who are using

e-payment transactions.

To determine the preferred e-payment transaction to the young professional in Gingoog

City.

To know how often the young professional uses the e-payment transaction.

To know the advantage and disadvantage of e-payments transaction to the young

professionals in Gingoog City.

 III. Research methodology

This study was made to describe the readiness of young professionals using e-

payments transactions. To determine the current state of research on e-payments

systems and their future directions, the study employs a meta-analysis technique

research. In statistics, meta-analysis refers to statistical analysis of large

collections of analyzed results from individual studies with the aim of integrating

such findings (Glass, 1976). In other words, meta-analysis simply means analysis of

analyses. As such, this study provides an extensive literature review search

conducted with Google Scholar search engine in the month of May 2015 for those

researches that were carried out on e-payment adoption between the years

2010-2015.

The tool that will be used to collect data is through survey questionnaires. Which

compromise close-ended questions that will be answered through multiple choice and

YES or NO choices. Data collection strategy will be cross sectional wherein

respondents will be individually given questionnaire surveys through social media

platforms and google accounts adapting the new normal. Furthermore, data types will

be a qualitative study. The rapid growth of technology and how young professionals

influence using e-payments will use qualitative form in Gingoog City.

The number of respondents will be wisely chosen using convenience sampling to the

young professionals here in Gingoog City. The sample size will be computed based on

the whole population of Gingoognons on young professionals in the year 2020-2021.

For convenience, survey questionnaires will be distributed to young professionals here

in Gingoog City at the time of surveying.

The questionnaires given to the respondents will determine the readiness of young

professionals in Gingoog City with the use of e-payments. The study primary source of

data is from the survey collected by the researchers.

For data analysis and interpretation, (cross tabulation) will be used to determine if

young professionals are ready in using e-payments in these kinds of situations,

especially the rampant cases of Covid19, factors that contribute to young professionals

will be interpreted through tables and bar or pie charts.

 IV. Scope and limitation

The scope of the study is about the readiness of young professionals in Gingoog City

with the use of E-payment transactions. The research study will be focusing mainly on

the young professionals who are using e-payment transactions inside Gingoog City and

their commitment of being prepared to use e-payment transactions.

This study will determine the numbers of e-payment users in Gingoog City and their

knowledge about the e-transactions, the readiness of young professionals using e-

payments and how young professionals cope up on using e-payments.

V. Hypothesis
This study will analyze both null hypothesis and alternative hypothesis to determine the

correct hypothesis using survey data collected by the researcher at the end of the

paper.

The young professionals in Gingoog City are ready in using the e-payment transactions.

The young professionals in Gingoog City are not ready to use the e-payment

transactions.
 VI. Conceptual Framework

The theoretical framework of this study explains the readiness of young professionals

using e-payment transactions. There are different modes of e-payment transactions

brought by this new era and it’s been influencing the youth such as young professionals

to understand and adapt to the development of technology. To determine the readiness

of young professionals there are different factors that compress the study, and among

those is design.

E-payment will dramatically increase in the longer period and it will show a gradual

decrease in share of cash in 2022, despite the heavy cash transactions in the country

(king, 2019). The motivation for innovation in the e-money industry can be attributed to

the power of the consumers as they are the primary users of the technology and

ultimately. Factors that influence technological adoption by consumers are security,

cost, convenience, characteristics of mobile service provider, characteristics of mobile

payment vendor, and characteristics of mobile technology, disposition of trust, and

disposition of culture (Pasti, 2019).

It has advocate the migration from a cash-based to a digital or cash-lite economy even

though the study show that the country is still in a long way, because 85 percent of all

retail sales in the country are still conducted in cash, and perhaps a culprit is the low

awareness or knowledge about the different e-payment platforms (Funa, 2020).

Young professionals hold the population in the country and bring the new interface of

how the economy runs now and in the future with the rapid growth of technology can

uphold on adapting the new development of technologies. Knowledge and experience is

needed to this new evolved technologies and e-payment transactions are among the

changes that young professionals introduce to preparedly evolve in the new era.

Furthermore, storing knowledge to these various accesses of e-transactions can

embody young professionals to adapt e-payments.

The framework will state the readiness of young professionals in using e-payments.

This will be determined through their knowledge and experience using the e-

transactions and at what rate the young professionals have the approval on adapting e-

payments. Using the Technology acceptance model (TAM) this will give support on the

readiness of young professionals. TAM is an information systems theory that models

how users come to accept and use a technology and the actual system use is the end-

point where people use the technology. Behavioral intention is a factor that leads people

to use the technology (Bala, 2008).

VII. Research findings

 This chapter shows the analysis and interpretation of data gathered by the

researchers. The data used the pie graph and bar graph forms for this study. The

results of this study are based on the survey data that gathered by the researchers and

follow the objectives of this study from the previous chapter.

Figure1. The Pie Graph with regard to the Gender of the Respondents

Figure 1 presents the percentage of gender of the respondents and interpreted that

most (71.7%) are female and (28.3%) are male.

Figure2. The Bar Graph with regard to the Age of the Respondents
Figure 2 presents the percentage of age of the respondents and interpreted that (1.7%)

are 18 years old of aged and (8.3%) of the respondents aged 19 years old and (10%)

are 21 years old then (13.3%) are 22 years old of aged while (15%) are 23 years old of

aged and (3.3%) are 24 years old of aged and followed by (11.7%) are 25 years old of

aged then (8.3%) aged 26 years old and (1.7%) are 27 years old while (5%) of the

respondents aged 27-29 years old and (3.3%) of the respondents aged 31-32 years old

of aged followed by (1.7%) of the respondents aged 35-37 years old of aged.

Figure3. The Pie Graph with regard to the Status of the Respondents

Figure 3 presents the percentage of status of the respondents and interpreted that most

(83.3%) are single and (16.7%) are married.

Figure4. The Bar Graph with regard to the Occupation of the Respondents

Figure 4 presents the percentage of occupation of the respondents that most (1.7%) of

the respondents are Accountant, Secretary, Call Center Agent, Freelancer, Sales

person, Engineer, Barangay captain, Seafarer, and Self-employed followed by (6.7%)

are Government officials and (8.3%) are Nurse while (23.3%) are teachers.

Objective1. To determine the readiness of the young professionals using E-

payment transactions

The survey data are from the number of respondents that indicated the readiness of

young professionals. The data sheet allows no missing or invalid data. Valid data is 100

percent.
 N Valid 60

Missing 0

Figure6. The Pie Graph base on how often do you use e-payment transaction

The survey data shows that among 60 young professionals, there are (66.7%) used e-

payment transactions several times a month. Then (15%) used it several times a week.

(6.7%) used it daily then (11.7%) rarely used the e-payment transaction.

N Valid 60

Missing 0
Figure7. The Pie Graph base on what kind of e-payment that used

The data shows that there are (58.3%) used mobile payments (GCASH, PAYMAYA

AND ETC) , then (23.3%) fornCard services and (18.3%) for Automated Teller

Machines (ATM).

N Valid 60

Missing 0
Figure8. The Pie Graph base on how easier paying bill using e-payment

transactions

Among the 60 young professionals there are (96.7%) answered Yes and (3.3 %)

answered No.

N Valid 60

Missing 0
Figure9. The Pie Graph and Bar Graph base on reason for choosing e-payment

transactions

The data present that (56.7%) of the respondents answered safe and secure followed

by the response in convenience on 24hrs service anywhere connectivity that gives

(21.7%) while (21.7%) that staying in control also easily check the expenses and the

transaction details.

N Valid 60

Missing 0
Figure10. The Pie Graph and Bar Graph base on barriers on using e-payment

transactions

The data survey presents that most of the respondents chose that it is not applicable to

all stores which gives (53.3%) and (40%) is that barriers for them are the security

concern that maybe hackers would do something to get the money from them and hack

their accounts and take over, last is the (6.7%) which is disputed transaction that they

will not be able to know who are using their cards without knowing.

VIII. Conclusion and Recommendation

1.) The data shows that 66.7% of respondents used e-payment transactions several

times a month and only 15% who responded several times a week, while 6.7%

answered daily use in e-payment transactions and the remaining 11.7%

responded to rarely use e-payment transactions.

2.) Survey data presents that 58.3% of the respondents used mobile payments

(GCASH, PAYMAYA and other mobile payment platforms) and 23.3% responded
 to using Card service while 18.3% preferred to transact using Automated Teller

Machines.

3.) On the survey data there are 96.7% answered yes that using e-payment

transactions are easier when paying bills while 3.3% says no.

4.) According to the survey data majority of the respondents answered using e-

payments are safe and secure with the percentage of 56.7% that followed by

21.7% that give convenience on having 24hrs service anywhere, while staying in

control and can check expenses has same percentage on convenient in using e-

payment with 21.7% of response.

5.) The data shows that 53.3% of respondents answered not applicable to all stores

and 40% of respondents had security concerns while the remaining 6.7%

answered that respondents cannot identify people that transact the e-payment

account.

Recommendation

Based from the study conducted by the researchers, the researcher conclude ,

young professional are ready to use e-payment since based on the result mostly the

young professional are using e-payment on their daily activities. Also, with the use of e-

payment it makes easier to pay the bill but mostly the respondents are having a hard

time in some stores in using e-payments. Therefore, the researcher recommend that

every store in Gingoog City must be able to accept and adapt e-payment in order for

young professionals and some users pay the bill easier. Also since e- payments are

very useful not just in other country but also here in the Philippines Gingoog City must
adapt technology such as e-payment transaction for the growth of every businesses and

considering the health of every individual it makes easier , reliable and less time effort

especially the world are experiencing such pandemic.

IX. References

Michael Humbani, Melanie Wiese, (2019) "An integrated framework for the adoption

and continuance
intention to use mobile payment apps", International Journal of Bank Marketing, Vol. 37

Issue: 2,

pp.646-664, https://doi.org/10.1108/IJBM-03-2018-0072

Dr Rizwana Bashir, Irsa Mehboob, Waqas Khaliq Bhatti, (2015) “Effects of online

shopping trends on consumer-buying behavior: An empirical study of Pakistan”, Vol. 2

Num. 2

Henrik Fürst (Author), 2014, Why are E-payment systems important for us?, Munich,

GRIN Verlag, https://www.grin.com/document/353531

Keyzom Ngodup Massally, Rodrigo Mejía Ricart

Technical authors: Malavika Bambawale, Swetha Totapally, and Vineet Bhandari

(2019) “The State of Digital Payments in the Philippines”.

International Journal of Engineering Applied Sciences and Technology, 2019

Vol. 4, Issue 5, ISSN No. 2455-2143, Pages 195-198

Published Online September 2019 in IJEAST (http://www.ijeast.com)

Pourmohammad H, Zandieh M, Farsijani H (2016) The effect of quality of electronic

banking services on agility of a bank. Management Science Letters 6: 521-534.

Haitham H, Gullstrand E (2017) Residential Energy Information Systems: A

Technology Acceptance Approach.

Pireh Panhwer, Adnan Pitafi, Muhammad Saad Memon and Anum Memon,

"Awareness and Reason towards Slow Adoption of EPayment System: Study of

Hyderabad”, Annals of Contemporary Developments in Management & HR (ACDMHR),

Print ISSN: 2632-7686,

Online ISSN: 2632-7694, pp. 6-21, Vol. 2, No. 1, 1st February 2020, Published by

International Association of Educators and Researchers

(IAER), DOI: 10.33166/ACDMHR.2020.01.002, Available:

http://acdmhr.theiaer.org/archive/v2/v2n1/p2.html.

“Addressing E-Payment Challenges in Global Digital Payment” (2018),

http://www3.weforum.org/docs/WEF_Addressing_E-Payment_Challenges_in_Global_E-

Commerce_clean.pdf

Elaine Iturralde, Nyker Matthew C. King, Ma. Christina Mate, (2019)”Industry Study of

Electronic Money” 10.13140/RG.2.2.18567.21925,

https://www.researchgate.net/publication/341669939_Industry_Study_of_Electronic_Mo

ney

Venkatesh, V., Thong, J. Y. L., & Xu, X. (2012). Consumer acceptance and use

of information technology: Extending the Unified Theory of Acceptance and Use of

Technology, MIS Quarterly, 36(1), 157–178.

X. Appendixes
This questionnaire is part of the study which seeks to know the readiness of young

professionals using e payments transaction in Gingoog City. You are requested to

answer the questionnaire sincerely.

Please be assured that your responses will be dealt with utmost confidentiality and will

be solely used as part of the data needed to realize the objective of this study.

--------------------------------------------------------------------------------------

Questionnaire 

                   PART I

Gender __ Male __Female

Age __

Status     __ Single     __ Married  

Occupation ______________________

PART II
1. How often do you use e-payment transactions?

___Sometimes (several times a month)

___Frequently (several times a week)

___Daily

___rarely (at least once in a year)

2. What kind of e-payment transaction that you used?

____ Mobile Payments (Gcash, Paymaya and etc)

____ Card Service (Debit and Credit Card)

____ Automated Teller Machines

____Others (please specify) _______

3. Do you think using e-payment transactions make it easier in paying your bill?

____ YES       ____ NO

4. What are your reasons for choosing an e-payment transaction?

 ____ Safe and secure

____ Convenience (24 hours service anywhere connectivity)

____ Staying in control (easily check your expenses/transaction details)

____ Others (Please specify )__________

5. What are the major barriers of using e-payment transactions?

____ Security Concern (Like hacking)

____Not applicable to all stores

____ Disputed Transactions (without authorization you cannot identify

who claim the purchase)

____ Others (please specify) _________