Republic of the Philippines

Northwest Samar State University

Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
Telefax: (055) 2093657
ISO 9001:2015 Certified

(GROUP 4)

Module 7:
Group Work

Directions: Read the following questions carefully. For offline

submission, place your answers on a separate sheet of paper
(yellow paper or bond paper) and send it thru mail or trusted
offline courier. For online submission, submit your answers
thru dedicated social media channels and text messaging.

1. Follow the advocated format in constructing the following:

a. Related Literature

The mobile wallet, one of the recent innovations, is an application on a

mobile device allowing individuals to store and use payment and loyalty cards,
pay their bills, make peer-to-peer-payments, issue cheques, store e-receipts, and
use coupons directly from the application. The transactions are to be conducted
in a convenient, easy and time saving manner (Kumar, Anand, and Song, 2017).
On the other hand cashless society is safer from robberies as the retailers have
less cash to keep on their premises, while the customer has the advantage of
various ways to pay (Most Preferred Payment Methods in India, 2022).
Mobile wallets are also one of a considerable potential to change how consumers
make purchases and enhance their shopping experiences and it has been also
argued that convenience, cost, and record keeping are key benefits defining
consumers’ payment preferences (Jamie Mew & Elena Millan, 2021). Broadly
Mobile digital wallets can be classified into 4 types, open, semi-open, semi –
closed and closed. Depending on 3 factors Re-loadable, Cash-withdrawal &
Linked to the bank (Alaeddin et al., 2018).
Mobile wallets and related terms

The critical component distinguishing mobile wallets from other payment

methods is the mobile device, i.e., the smartphone used to transfer monetary
value. Mobile payment represents all payment solutions using smartphones,
such as mobile banking, NFC-enabled payments, and mobile wallets. Most
banks have their own independent mobile wallet application and mobile banking
application. A mobile wallet is a mobile payment application that has the
functionality to replace a conventional wallet by making payments and storing
membership, loyalty, and travel cards. They also store personal and sensitive
information such as passport details, credit card information, online shopping
accounts, and PIN codes in an encrypted form (Ajimon George & Prajod Sunny,
 Republic of the Philippines
Northwest Samar State University
Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
Telefax: (055) 2093657
ISO 9001:2015 Certified

(GROUP 4)
2022).

Perceived Security (SEC)

Mobile wallets could also be used to store in an encrypted or password
protected format sensitive personal information, such as passports, PIN codes,
online shopping accounts, booking details, and insurance policies (Shin, n.d).
Accordingly, concerns regarding the security of mobile payment systems appear
among the key factors affecting attitudes (Liébana-Cabanillas et al., 2014;
Shatskikh, 2013). The objective security of the mobile payment systems can be
considered not inferior to other payment methods such as online credit cards.
Use of various technologies including cryptography provides high-level of
security in related transactions (Crowe & Tavilla, 2012). However, concerns on
the perceived security of mobile payment systems, not the actual security, create
a barrier in the adoption of these systems (Kim et al., 2010; Linck et al., 2007;
Ovum, 2012). Losing mobile phones, which is not an uncommon occurrence and
identity theft are the major concerns of the consumers (Gross, Hogarth, &
Schmeiser, 2012).

Perceived Usefulness (USE)

The lack of actual benefits or a clear understanding of these benefits
offered by mobile wallet is one of the major barriers of mass adoption of mobile
payment systems (Shatskikh, 2013). When a user finds a system to be useful, he
or she develops a positive attitude towards it, furthermore if able, he or she uses
the system to obtain the perceived benefits. This is one of the underlying
assumptions of TAM and the usefulness offered by a system / new technology is
operationalized as the perceived usefulness construct in the relevant literature.
This construct is also incorporated into similar models, one being relative
advantage another being performance expectancy. Perceived usefulness was
originally as “the degree to which a person believes that using a particular
system would enhance his or her performance”, another definition more relevant
to the present study is that “the use of a given technology should be useful for
someone in achieving a particular result”. In different contexts usefulness of a
system/service appeared among the key factors shaping attitudes and also
explaining use intentions. Within the mobile payments context, customers
indicate new payment solutions as useful if these systems make their lives easier
and this construct incorporates the performance and mobility factors (Gokhan
Aydin & Sebnem Burnaz, 2016).

Consumer adoption of mobile payment (m-payment) solutions is low

compared to the acceptance of traditional forms of payments. Motivated by this
fact, we propose and test a "trust-theoretic model for consumer adoption of m-
payment systems." The model, grounded in literature on "technology adoption"
and "trust," not only theorizes the role of consumer trust in m-payment adoption,
but also identifies the facilitators for consumer trust in m-payment systems
 Republic of the Philippines
Northwest Samar State University
Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
Telefax: (055) 2093657
ISO 9001:2015 Certified

(GROUP 4)
(Shirish C. Srivastava, Shalini Chandra & Yin-Leng Theng, 2010).

However, the usage of cashless transactions in the Philippines is not as

high in developed countries. The trajectory of generation X’s behavioral intention
to adopt GCash was popularized during this pandemic crisis. Currently, there is
limited information on the influencing factors that impacts this behavioral intention
on the adoption of the untapped target market (Cacas, A., Diongson, M. B. A. ., &
Olita, G. M. . 2022)

In the Philippines, economic recovery in the aftermath of the COVID-19

pandemic necessitates a digital shift for businesses. Through this innovation,
their operations can continue under the new normal. The adoption of digital
payments is one of the common business recovery options supported by the
government (Imee et. al., 2022). Along with other mobility restrictions, limited
face-to-face activities during the COVID-19 pandemic. Consequently, many
consumers have opted for digital purchases. This buying behavior paved the way
for the rise of digital commerce. Transactions for the purchase of goods and
services have migrated online. Under this scheme, payments are now made
through digital methods (Agur et al. 2020). The Philippines has an open policy
environment that is conducive to the conduct of digital trade (Quimba et al.
2021). In the e-finance landscape of the Philippines, the Digital Payments
Transformation Roadmap of the Bangko Sentral ng Pilipinas was formulated to
further develop more innovative and responsive digital financial services to serve
the increasing consumer preference for digital payments (BSP, 2021). This
development boosted the use of electronic financial services, which include
online banking and digital money applications (Quimba and Calizo, 2018).
However, other equally important factors relative to the firm’s decision on digital
payment adoption are the firm’s availability of IT infrastructures and relevant prior
knowledge needed to navigate through the online platforms (Liao and Yang
2020). Several significant factors also that contributed to the ability of the firms to
adopt digital payments, as a key pivot strategy during the pandemic period, were
identified. As transactions evolved in a contactless society, younger firms are
more likely to adopt digital payments. Relatively young firms are in better
positions when it comes to innovation adoption since they are more flexible,
receptive to changes, and aim for seamless and sustainable business operations
(Trinugroho et al., 2021). Innovations such as digital payment adoption may be
considered by older firms as a disruptive force, which will affect their existing
processes and activities, thus probably limiting their interest to adopt
(Subrahmanya, 2011).
The related literature above is significant to our study in the sense of it is
interconnected with our variables the Attribute, Knowledge and Practice of the
users. It is clear with the related literature mention above that mobile wallet
application give users positive experience in any transaction they made, it also
shown that having a good security and knowing the usefulness of the app able
 Republic of the Philippines
Northwest Samar State University
Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
Telefax: (055) 2093657
ISO 9001:2015 Certified

(GROUP 4)
the users to adopt using mobile wallet in any transaction. In addition, younger
firms are better when it comes to innovation adoption since they are receptive to
changes, while the older firms considered it as disruptive force.

b. Related Studies

The studies that will be present in this chapter have a correlation to our
study and it is connected clearly for further understanding.

Azizah, Handayani, and Azzahro (2018) Identifies that the continuance

usage of mobile wallets and examines continuing usage of mobile wallets that
have been released registered with bank Indonesia and issued by nonbanks.
This study correlates to our study because our study also states that the factors
that influence those users of mobile wallet application.

According to Ajimon George, and Prajod Sunny (2021) developing a

research model for mobile wallet adoption and usage examines factors
influencing behavior intention and actual usage of mobile wallet through various
technology adoption model and behavioral studies. this study correlates to our
study because our study also supports the case of mobile wallet adoption and
usage.

While, Gokhan Aydin, and Sebnem Burnaz (2016). Aims to understand

the factors contributing to consumer attitude development towards and intention
to the mobile wallet system. This study correlates to our study through mobile
wallet helps a lot blank usage of their mobile wallet application contributed
factors that affect consumer attitude.

Moreover, Carlos Leon (2021) rightly pointed out that mobile wallet
replicates physical wallet on a mobile device, in which blank can store different
payment instruments to make mobile payments. He added the behavior of users
in the network of transfer shows that they find new ways to use mobile payment
beyond person-to-person transfers, including person-to-person business and
business-to-business. this study has a correlation to our study, users that utilize
mobile wallet application and payment shows that they find new way to be safe
and prevented communicable diseases.

Al-Qudah, AI-Okaily, et.al (2020) evaluated the situation in COVID-19

pandemic as well as the blank digital transformation, where the whole world is
being forced to participate our lead for a wide acceptance to use the mobile
payment. In addition, the blank variables that addressed by the current study are
 Republic of the Philippines
Northwest Samar State University
Rueda St., Calbayog City 6710
Website: http//www.nwssu.edu.ph
Email: main@nwssu.edu.ph
Telefax: (055) 2093657
ISO 9001:2015 Certified

(GROUP 4)
blank and blank blank perceived usefulness, convenience of the system,
perceived risk in the primary variable. This study correlates to our study, because
our study also addressed the conveniency and usefulness of using mobile wallet
application.

As Ul Islam-Khan, Rashidah F. Olanrewaju, et.al (2017) investigated the

advent of ecommerce together with the growth of the Internet promoted the
digitization and of the payment brasses with the blank of various online payment
method blank electronic cash, debit cards, blank blank blank payment, mobile
wallets etcetera. This study analysis the various factors that affect the adoption of
online payment system by consumer. This study has a correlation with our study,
because our study also investigated the growth of individual users of mobile
wallet application, it also identified the factors that affects those users who adopt
online payment.

In addition, Wang, Hahn, and Sutrave (2016) identify the threats and
security challenges. The study summarizes last security long desired in mobile
payment system and also the security mechanism which are currently in place.
This study correlates to our study, because our study also identified the threats
user experience in using mobile wallet application.

Furthermore, Mohammad Salah Uddin, and Afroza Yesman (2014) this

paper is to contribute to the design of EWallet's for Bangladesh, Electronic
Payment System (ETC) E wallets are intended to replace the existing physical
wallet, with its notes coins, plastic cards, ATM cards and blank cards etc. This
study correlates to our study, because our study states that most of the people
use mobile wallet application to replace existing physical wallet when doing
transaction.

Further, Yijun Huang, Wenwen Liu (2012), as mobile payment will get and
use personal information of users to complete the payment process, which may
generate the problem of user's privacy information, stolen, leaked, improperly
used, bringing about users concern on personal information privacy. The paper
identifies the use of structural equation model to analyze the impact of primary
concern and users' intention to use mobile payment. This study correlates to our
study the way the study states the alarming uses of personal information of
users.

As Subaramniam, Kolandaismy, et.al (2020) states Internet users that are

growing rapidly day by day around the world. They added, digital payments are
making the blank now. E wallet has become a great potential in the ecommerce
wallet. This study correlates to our study, because our study also states that
mobile wallet application kept increasing the number of users and it become a
great potential to those consumer and marketing.