Readiness in the Usage of Cashless Payments in Baguio City

A Thesis Presented to

the Faculty of the college of Business Administration

University of Cordilleras

In Partial Fulfillment

of the requirements for the Course

Business Research & Statistic

By

Reangel Mae Bañaga Camarao

Melchor Wakit Dimot
Edralyn Manantan Orallo
Krisna Damogo Osboken
Jan Therese Dion Vicente

December 2020
 Chapter 1

THE PROBLEM

Background of the Study

As money has been invented, fraud and volume payment became

an issue. Bartering became one of the methods used by people and

is still being practiced in different cultures. It exchanged

goods and services with another person without involving money.

Cashless transaction is one where the payment is made by

means other than physical cash. (Gupta, 2017) The rise of

cashless transaction is due to emerging trends driven by

consumer’s preference, convenience and efficiency in transacting.

(Ahmed, 2016) The concept of cashless transaction system emerged

in the nineteenth century through the public writings of Edward

Bellamy. He described that paper transaction will soon be

replaced by credit-card based system. (Bellamy, 2000)

Mobile wallets, online payment providers, and near field

communication technology (NFC) is continuously innovating the way

people transaction act using mostly “Tap -and- Go” payment

solutions. (Ahmed, 2016) Mobile transactions will continue to

grow in 2017 as Apple-pay, Google Wallet, Paymaya, Gcash and

other companies continuously advertising this method. (NASDAQ,

2017) Bitcoin is a trend now and is always the content of the

news headline almost every day. Bitcoin is a decentralized block

chain and public ledger that verifies each transaction via a

network of nodes. (Flatt, 2016) During the year 2000, hip-hop

music and culture are being used to provide an unverified

perspective of cashless society of the Millennials. (Lewis, Cole,

2016) However, in Britain, a survey result found out that

shoppers are using less cash than ever before because retailers

are introducing a new system of payment. (British Retail

Consortium, 2014)

In the Philippines, Smart eMoney, a digital financial

service of Philippine Long-Distance Telephone and Smart

Communications, introduced PayMaya. On the other hand, Globe

telecom along with Integrated-Micro Electronics introduced their

own version of PayMaya called Gcash. Both companies are

convincing the Filipinos to download to their mobile phones that

facilitate payments for digital transactions. (Estopace, 2015)

According to data of BSP as of 2012, there are 112 banks in the

Philippines that are equipped with an electronic banking system

(internet or mobile-based). 54 of these 112 banks are rural

banks. There are 24 e-money banks and 3 e-money issuers (non-

bank/others). There are over 15,000 cash-in/cash-out agents.

There are about 8 million active users of e-money platforms and

e-money total inflow and outflow transactions amounts to over PhP

188 million.

To know the factors to consider that will help to determine

the readiness of the people in in the City of Baguio towards the

concept of cashless payment. This study will be conducted to

recognize the benefits and problems of cashless transaction

system in Baguio City.

 To determine the readiness of people in Baguio city in

terms of cashless transactions.

 To determine the advantage and disadvantage of cashless

payments in Baguio city.

 Know the modes of cashless transactions systems that are

currently available in a community.

 Identify and describe the factors that may affect the users

of cashless payment in Baguio city. (Write this in a

paragraph form not in an outline form.)

Note: Chapter 1 is incomplete. Refer to the example I have given

you. Include the following: Purpose of the study, Rationale,

Importance and Significance of the study and the

Theoretical/Conceptual Framework.
 Figure 1

Research Paradigm

Input Process Outcome Expected

Outcome
1. Level of Identified:
readiness of the 1. Level of
people in using readiness of the
cashless payment people in using
in Baguio City cashless payment
in Baguio City
a. Awareness of Assessment on a. Awareness of
cashless Payment the level of cashless Payment
readiness of the b. Compatibility
b. Compatibility people in using of using
of using cashless payment cashless
in Baguio City Proposed Action
cashless payment; and Plan
and the problems
payment; and c. convenience
encountered thru
of cashless
c. convenience questionnaire
survey and payment in
of cashless Baguio City.
interview method
payment in 2. Problems
Baguio City. encountered
2. Problems
encountered

Based from suggested SOP’s.

Statement of the problem

The main aim of the study is to determine the readiness of

the people in the usage of cashless payment in the City of

Baguio. Specifically, it seeks to answer the following

questions:

Suggested SOP’s

1. What is the level of readiness of the people in using

cashless payment in Baguio City along:

a. awareness of cashless payment;

b. compatibility of using cashless payment; and

c. convenience of cashless payment?

3. What are the problems affecting the implementation of

cashless payment in Baguio City?