Background of the Study

E-banking is an umbrella
term for the process by
which customer may perform
banking
transactions electronically
without visiting financial
institution. Compared with
traditional
channels of offering banking
services through physical
branches, e-banking uses
the
Internet to deliver traditional
banking services to their
customers, such as of
opening
accounts, transferring funds,
and electronic bill payment.
E-banking is an umbrella
term for the process by
which customer may perform
banking
transactions electronically
without visiting financial
institution. Compared with
traditional
channels of offering banking
services through physical
branches, e-banking uses
the
Internet to deliver traditional
banking services to their
customers, such as of
opening
accounts, transferring funds,
and electronic bill payment.
In the contemporary business world, e-wallet was embraced and easily adopted as it is
becoming the major means of payment for services and products. It became a trend because
for its timeliness, convenience and efficiency. Basically, e-wallet can be described as a software
or application that make purchases for goods / services payed electronically and store and
transfer e-money via the use of the Internet(Sinha, 2014). As customer may perform
transactions electronically through software and internet without going to physical stores,
payments centers and financial institutions, it is a great help and advantage because it saves
time and hassle free compared to traditional payment system and banking services. This
payment method was rapidly adopted in the financial transactions. According to Rahayu &
Day(2015), the e-commerce model has changed many company processes, not only in terms of
how they buy, sell or communicate with their customers and suppliers, but also in terms of
shifting the strategy from manufacturing excellence to customer intimacy. Financial institutions
also adopted to e-wallet from turning their cash-based transactions to electronic-based
transactions which showing how great the impact of the information technology in the modern
business. Opening an account, paying bills and utilities, transferring funds and other traditional
bank transactions were made available in e-wallet software. As this method continue to proffer
more of e-commerce platform, it replaced most of the paper-based payment systems which
became a challenge for the business world to adopt it and not to stick with the conventional
payment methods.

Consequently, in the Philippines’ setting there are emerging e-payments that were already
established and present in most business and financial institutions. These are GCash and
PayMaya, topping the most used applications for online payment and transferring money in
Philippines. These are online applications that allow Filipinos to make cashless transactions
even those who don’t have bank accounts and credit cards. PayMaya is owned and created by
Smart & PLDT Inc., basically, a virtual prepaid card for online transactions, booking flights and
hotel, and more. Based on your mobile network, you can either get a Digital Visa or a
Mastercard. A customer can purchase a physical card of PayMaya and can use it to all Visa
credited transactions in the country or even abroad. While GCash is owned by Globe Telecom
Inc., pioneered the local electronic payment industry in the country, is a e-wallet offered both in
card and app just like PayMaya. It also allows the customer to pay online, transfer money,
receive money and purchase goods just like PayMay, but it offers more features like GCash
Forest and GScore.

Related Literature

E-wallet like GCash and PayMaya is a digital payment mechanism that refers to the use of any
mobile gadget or internet service that allows users to access for online transactions. This can
involve purchasing products online with a smartphone to purchase something. As for setting up
or opening an account in this application, personal information is needed and sometimes need
verifications if a customer wants a upgraded services such as loans and other premium
privileges.

In 2015, online shopping and payments transaction continue to skyrocket up to now, letting
Filipino to fully adopt in this new payment system. According to Manila Times (2019), GCash
remained to lead in the E-wallet industry in the Philippines, having 20 million of registered users
last 2019, and PayMaya being its major competitor who got 5 million registered users last 2015.
Millions of Filipino prefer to use these wallet apps because of different factors that satisfy their
needs as customer. One thing that is very evident feature of these apps is that it’s handy,
wherein with just a click, one can complete his transaction without waiting for long and getting
outside the house. According to Apama (2018), e-wallets are gaining popularity among many
retailers because of security or protection, reliability and added value to the end-user, which
increases their satisfaction with their overall transaction.

There are many factors that customers consider in what e-wallet they’ll trust for their e-money,
credit cards and personal information. Aside from that, the efficiency of the application in
delivering hassle-free transactions or will the app fit their lifestyle. This study will determine how
customer perceive the factors such as reliability, perceived ease of use, security/privacy,
confidence, credibility, and accessibility in using two apps, the GCash and PayMaya.