Presented to the Decision Sciences and Innovation Department

De La Salle University-Manila
Term 1, A.Y. 2020-2021

In partial fulfillment
of the course
In Introduction to Analytics (DSILYTC C31)

An Analysis on the usage of Digital Wallets among DLSU ID 120

RVR-COB Students before and during the COVID-19 Pandemic

Submitted by:
Fabia, Alex
Gonzales, Mary Mikanel S.
Soriano, Ma. Ianna Kristine C.
Yao, Tiffany Mae O.

Submitted to:
Dr. Wilson Cordova, LPT

Submitted on:
February 10, 2021
 Table of Contents

INTRODUCTION 3

METHODOLOGY 5

RESULTS 7

ANALYSIS 15

DISCUSSION 17

REFERENCES 19

APPENDICES 20
 INTRODUCTION

Cryptocurrency is a decentralized digital currency that utilizes blockchain ledgers to

record and validate transactions. The most common type of cryptocurrency is bitcoin, which was
debuted in 2009 by an anonymous Satoshi Nakamoto (Cryptocurrency Wallet Definition, n.d).
Moreover, bitcoin is also a computer file, called the online version of cash which is stored in a
'digital wallet' or blockchain wallets via a smartphone app or computer software. The blockchain
wallet allows individuals to store and transfer cryptocurrencies. It charges dynamic fees for every
transaction depending on its amount (Reiff, 2020).

According to Reiff (2020), blockchain wallets can also serve as computing storage using
compression and crypto mechanisms. A data compression technique is used for saving disk
space, reducing the time needed for data transfer, or bitcoin in this case. The data for the
transmission is used for the encryption by using any one of the crypto algorithms. A
deterministic encryption scheme is a cryptosystem that always produces the same ciphertext for a
given plaintext and key.

In this ongoing global pandemic, digital wallet usage surfaced the demand from the
market following the factors and motivations according to usage. The following are: (1) family
and peer referral, (2) accessibility, (3) reliability in service, (4) security and privacy, (5)
time-saving, (6) rewards and discounts, (7) social media influence, and (8) safety in relation to
COVID-19: non-hazardous to health.

With the aforementioned factors, the researchers came up with a concept of analyzing the
number of digital wallet users among DLSU ID 120 Ramon V. del Rosario College of Business
(RVR-COB) students before and during the pandemic. The researchers already pre-determined
the possible type of blockchain wallet the respondents may be using, (1) GCash, (2) Paymaya,
(3) GrabPay, (4) PayPal, (5) ShopeePay, (6) LazWallet, (7) 7-11 CLiqq Pay, and (8) Coins.ph.
Having the distinguished type of digital wallet listed, the statement of the problem is, “How
advantageous digital wallets are, before and during the pandemic?” Furthermore, the researchers
would also like to discuss the purpose, benefits, frequency of usage, and the rate of how
advantageous it is to the end-users.

Short Review of Literature

Kagan (2020) defined a digital wallet as a virtual wallet enabling users to securely store
their card information on mobile devices mainly for payment purposes. This allows consumers to
pay for purchases in a few simple taps so long as the store is included in their service provider’s
list of merchants. Digital wallets are accessible by installing mobile applications and can provide
discounts, coupons, or rewards to frequent users. Other financial transactions can also be done
such as bills payment, money transfers, top-up load, etc. As stated by Legaspi (2020), there are
around 20 million users of digital wallet applications with GCash, PayMaya, GrabPay, PayPal,
and Coins.ph being some key industry players in the Philippines. The World Bank’s 2020 report
stated that the country is slow in adapting to financial technology and this may be caused by
consumer reliance on paper-based payments as it is deemed safer and many people are already
accustomed to this process. Consumers have been using digital wallets even before the
pandemic, however, the urgency of this crisis increased usage as these are the most accessible
ways to transact and minimize physical contact.

Several studies have analyzed factors affecting the utilization and adoption of digital
wallets, however, the COVID-19 pandemic has made it difficult to find available and timely
literature. Nevertheless, the following are some relevant research that may be related to the topic
of the study. Yang et. al (2021) argued the intention and adoption of adults in Indonesia in using
a digital wallet are positively affected by perceived usefulness, ease of use, social influence,
facilitating condition, lifestyle compatibility, and perceived trust. The research is significant as it
tackles these factors during the pandemic and concludes that cashless transactions are preferred
by younger generations. Lai (2016) reported that influences to the intent of utilizing digital
wallets were perceived functionality, perceived convenience, security, and design, with security
positively affecting intention to use digital wallets. Further, Teo et. al (2020) identified the level
of adoption for e-wallets in Malaysian youth through analyzing driving factors for use and found
that perceived security, convenience, and social influence greatly affected intention to use. From
reviewing the related literature, it is evident that consumers utilize digital wallets as it offers
convenience, function, and security.

Objectives of the Study

● To determine if there is a significant difference in the usage of digital wallets before and
during the pandemic.
● To identify the reasons behind the usage of digital wallets.

Limitation of the Study

This study only talks about the usage of digital wallets before and during the COVID-19
pandemic. The researchers limited their study to ID 120 students of the RVR-COB in De La
Salle University-Manila as their respondents for the survey. Lastly, the research would only focus
on the statistical evidence and effects in relation to the chosen topic. A further and in-depth
discussion will not be expected from the paper.

METHODOLOGY

Research Design
In order to satisfy the objectives and requirements of this paper, quantitative research
based on a survey of 52 students, from RVR-COB, ID120 was conducted. This is because the
main objective of the paper is to draw statistical conclusions and data analysis. Moreover, it also
gives multifaceted sources based on response collection automated by Google Sheets which are
both extensive and practical. Additionally, it is subjective due to the fact that respondents are
safeguarded with anonymity and confidentiality which increase the possibility of explicit
honesty.

Sampling Plan
The researchers followed the simple random sampling technique under probability
sampling procedures in selecting respondents. The simple random sampling (SRS) technique
pertains to determining a sample size of n from a population N, ensuring that each member of the
population is given an equal chance of being chosen (Arcilla et. al., 2013). In this method,
several ways can be done to select respondents such as the fishbowl method or the use of random
number generators. Given that the online set-up posed a challenge in conducting the survey, the
researchers decided to reach a realistic number of the student population by posting in the
Facebook group catered for the target, DLSU ID 120 RVR-COB students. This was done in line
with the SRS technique and to aid the researchers in quickly reaching the target number of
respondents of 50, however, the total number of respondents received was 52.

Instrumentation
The chosen instrument in this study is an online survey questionnaire administered
through Google Forms. The survey questionnaire contained a mix of open-ended and
closed-ended questions to gain quantitative data for hypothesis testing as well as qualitative data
on factors affecting the digital wallet usage of consumers to aid the results. This instrument also
allows for easier collection of data as compared to other instruments such as focus groups or
interviews. Moreover, the survey also provides for a comparison of the gathered results which is
directly in line with the topic of the paper. This survey was posted in the DLSU ID 120
RVR-COB Facebook group.

Statistical Tool
The researchers would be utilizing both descriptive and inferential statistics. Specifically,
in inferential statistics, this study would use hypothesis testing in finding the difference between
how beneficial is the usage of digital wallets before and during the current pandemic. To conduct
this test and analyze data gathered, the Z-test would be used since there would be two means of
more than 30 respondents that the researchers would analyze.

Treatment of Data
The survey results will be treated using the following statistical methods: mean and
standard deviation. These are the necessary data needed to successfully test the hypotheses in the
study using Z-test. Other than that, the research also consists of several nominal, ordinal, and
interval variables in its survey questionnaire. Specifically for the analysis of the hypotheses, the
only variable of interest are ordinal variables on the perception of the respondents of how
advantageous the use of digital wallets has been before and during the pandemic. These
questions were answered by respondents through a Likert scale, thus making it an interval
variable relevant to the analysis.

RESULTS

A. Demographic of the Respondents

a. Sex of the Respondents
Table 1: Sex of the Respondents

Female 30 57.69%

Male 20 38.46%

Prefer not to say 2 3.85%

TOTAL 52 100%

Out of 52 respondents, it can be seen in Table 1 that 30 or 57.69% were female, 20 or

38.46% were male, 2 or 3.85% prefers not to say their sex.

b. Age of the Respondents

Table 2: Age of the Respondents

Below 18 2 3.85%

18-20 50 96.15%

21 and up 0 0

TOTAL 52 100%

Based on Table 2, it can be seen that out of 52 respondents, 2 or 3.85% were below 18
years old, 50 or 96.15% were in the range of 18-20 years old.
 c. Degree Program of the Respondents

Figure 1: Degree Programs of the Respondents

As seen in Figure 1, BS Accountancy students are 26 or 50%, BS Entrepreneurship

students are 6 or 11.5%, BS Marketing Management students are 6 or 11.5%, BS Applied
Corporate Management students are 5 or 9.6%, BS Business Management students are 3 or
5.8%, BS Management of Financial Institutions students are 2 or 3.8%, BS Legal Management
students are 2 or 3.8%, BS Advertising Management students are only 1 or 1.9%, and BS
Interdisciplinary Business Studies students are only 1 or 1.9% out of the total of 52 respondents.
 B. Comparison of the Usage of Digital Wallets Before and During the Pandemic
a. Digital Wallet Users before the Pandemic

Figure 2: Digital wallet users before the pandemic.

Out of 52 respondents, it can be seen in Figure 2 that 32 or 61.5% were already digital
wallet users even before the pandemic. while 20 or 38.5% of the respondents did not use digital
wallets before the pandemic.

b. Kinds of Digital Wallets used BEFORE the Pandemic

Figure 3: Kinds of digital wallets used before the pandemic

 With 29 votes, the GCash application was the most popular digital wallet application
before the pandemic. It was followed by WeChat Pay, GrabPay, and Shopee Pay with 18, 14, and
11 votes respectively. 9 respondents used Paymaya, 6 respondents used Paypal, and 3
respondents used LazWallet. One respondent used Coins.ph while another respondent did not use
any digital wallet before the pandemic.

c. Kinds of Digital Wallets used DURING the Pandemic

Figure 4: Kinds of digital wallets used during the pandemic

In Figure 4, 49 respondents use the GCash application during the pandemic. 21 of them
use GrabPay and 20 use Shopee Pay. This is then followed by Paymaya with 14 respondents,
Paypal with 9, and LazWallet by 6, 7-11 Cliqq Pay by 2, Coins.ph by 1, and PDAX by 1.
 d. Purpose of Using Digital Wallets BEFORE the Pandemic

Figure 5: Purpose of digital wallets before the pandemic

As seen in Figure 5, 23 respondents used digital wallets for online purposes, while 20 of
them were not yet a user of any digital wallets before the pandemic. 19 respondents used it for
business transactions, and 14 of them used it for sending items and paying bills. Only 2 of them
used it for buying load. One respondent used it as a mode of payment in transportation and
another respondent (1) used it for another application.

e. Purpose of Using Digital Wallets DURING the Pandemic

Figure 6: Purpose of digital wallets during the pandemic

 In Figure 6, 48 out of 52 respondents voted for online shopping. 32 respondents use a
digital wallet for sending items to their family and peers, 31 of them use it for bill payment and
24 of them use it to transact with businesses. Only one of each voted for donations and other
forms of payment in normal activities.

f. Frequency of Digital Wallet Usage BEFORE the Pandemic

Table 3: Tally of the frequency of digital wallet usage before the pandemic.

Daily 2 3.85%

At least once a week 7 13.46%

At least once a month 8 15.38%

Seldom 5 9.62%

Only if deemed necessary 11 21.15%

Not Applicable 19 36.54%

TOTAL 52 100%

19 out of 52 respondents do not have a digital wallet before the pandemic. 11 respondents
say that they will only use it if deemed necessary. 8 respondents use it at least once a month
while 7 respondents use it at least once a week. Only 5 seldom use it and only 2 of them use it
daily.

g. Frequency of Digital Wallet Usage DURING the Pandemic

Table 4: Tally of the frequency of digital wallet usage during the pandemic.

Daily 5 9.62%

At least once a week 20 38.46%

At least once a month 12 23.08%

Seldom 4 7.69%

Only if deemed necessary 11 21.15%

 TOTAL 52 100%

With 20 votes, most of the respondents use digital wallets at least once a week. 12 out of
52 respondents said that they used digital wallets at least once a month while 11 out of 52
respondents said that they use digital wallets only if they need to. Furthermore, 5 of them said
that they use digital wallets on a daily basis during the pandemic. On the other hand, only 4 of
them said that they seldom use digital wallets during the pandemic.

h. How advantageous is digital wallet usage BEFORE the pandemic?

Table 5: Tally of how beneficial is digital wallet usage before the pandemic.

1 (Not Beneficial) 2 3.85%

2 (Somewhat Beneficial) 8 15.38%

3 (Neutral) 14 26.92%

4 (Beneficial) 10 19.23%

5 (Strongly Beneficial) 18 34.62%

TOTAL 52 100%

Figure 7: How beneficial is digital wallet usage before the pandemic.

 Based on the responses of the RVR-COB students as seen in Table 5 and Figure 7, 18 or
34.62% out of 52 respondents said that using digital wallets even before the pandemic was
strongly beneficial for them. Moreover, 14 or 26.92% of them said that using digital wallets
before the pandemic is neither beneficial nor disadvantageous for them. 10 or 19.23% stated that
it was beneficial for them. 8 or 15.38% stated that using digital wallets before the pandemic was
only somewhat beneficial for them while 2 or 3.85% said that using these wallets was not
beneficial.

i. How advantageous is digital wallet usage DURING the pandemic?

Table 6: Tally of how beneficial digital wallet usage is during the pandemic.

1 (Not Beneficial) 0 0

2 (Somewhat Beneficial) 0 0

3 (Neutral) 1 1.92%

4 (Beneficial) 3 5.77%

5 (Strongly Beneficial) 48 92.31%

TOTAL 52 100%

Figure 8: How beneficial digital wallet usage is during the pandemic.

 With 48 votes out of 52 or 92.31%, as seen in Table 6 and Figure 8, most of the student
respondents in RVR-COB state that using digital wallets during the pandemic is strongly
beneficial for them. While 3 or 5.77% of the respondents answered that using digital wallets
during the pandemic is beneficial and 1 or 1.92% of the total respondents said that using digital
wallets during the pandemic is neither beneficial nor disadvantageous.

ANALYSIS

The researchers will use the aforementioned data in the results part specifically Figures 7
and 8 in their analysis. They will be conducting a Z-Test for the difference of two means.

Step 1: Formulating Ho and Ha

The researchers want to prove that digital wallets have become beneficial during the pandemic.
With that, they formulated their null hypothesis as “Digital wallets are perceived to be as equally
advantageous before and during the pandemic.” While their alternative hypothesis is “Digital
wallets are perceived to be more advantageous during the pandemic than before the pandemic.”

Null Hypothesis: μ₁ = μ₂
Alternative Hypothesis: μ₁ < μ₂

Step 2: Level of Significance

The researchers will be using the standard 95% confidence interval as their degree of certainty.

Step 3: Formulating the decision rule, finding the value of the critical region
The researchers will be using a one-tailed test (lower tail) with a level of significance of 0.05.
The critical or rejection region is z < -1.645.
Step 4: Test Statistics: (See Appendix A for variable computations)

Z = -7.09622376104

Figure 9: Calculation on PHStat

Step 5: Decision-Making
With the z-value falling under the critical region, the researchers reject the null hypothesis.
 Figure 10: Critical region of a normal distribution curve

DISCUSSION

The analysis of the data reveals that digital wallets are more prevalent in today’s society
because of the COVID-19 pandemic. People are shifting towards digital wallets because of two
main reasons: accessibility and safety. It is easily accessible through the use of mobile devices
and does not require personal interactions. With this, it is safe to assume that digital wallets are
more impactful than traditional wallets. Based on the survey, the most known digital wallet used
by the students is GCash, though there are also other alternatives that are also known to society.
In addition, the most common reason for their usage is online shopping.

Conclusion and Recommendations

This study analyzed the usage of digital wallets among DLSU ID 120 RVR-COB students
before and during the COVID-19 pandemic. The data collection was done through a simple
random sampling (SRS) technique and online survey questionnaire which garnered 52
respondents of digital wallet users from different programs. The results of the survey showed the
differences in the applications used, the purpose for use, and the frequency of use of the
respondents before and during the pandemic. The researchers focused on testing a hypothesis
regarding the respondents’ perceived usefulness of digital wallet usage before and during the
pandemic. Upon conducting a one-tailed left directional Z-test, the study found that users
perceive digital wallets to be more advantageous during the pandemic as compared to before the
pandemic, thus, there is increased usage of these applications. This can also be seen in the graphs
of the data since there were mixed answers on the advantages of digital wallet use before this
crisis. When asked to rate its perceived functionality during the pandemic, 92.31% stated digital
wallet use is strongly beneficial. Further, a large portion of respondents stated they did not use
digital wallets before the pandemic and the survey reported a change to answers during the
pandemic as the frequency of use for the majority was at least once a week. Based on the
gathered data and results, the researchers presume a continuous growth for digital wallet use as
the pandemic continues. This development is likely due to the perceived advantages brought by
digital wallets to users.

This paper contributes to studies focused on the usage of digital wallets before and during
the pandemic. Since the scope of this study is limited to DLSU ID 120 RVR-COB students, other
researchers may conduct similar studies but with a larger sample size to gain a variety of answers
on the usage of digital wallets before and during the pandemic. The researchers also suggest
further examination of the advantages and influences of digital wallet usage in other conditions
or environments. This would show if there are differences in the perceived benefits of digital
wallets in various developing countries. Another recommendation is to examine a group of
people in the same category, i.e., age, gender, education, status, income. This may allow
researchers to see which factors affecting the use of digital wallets are most prevalent towards a
certain group and if there are variations across the aforementioned categories. The results of this
study may also be utilized by firms and government agencies in strategizing economic
development through digitalization in the “new normal” since more consumers rely on digital
wallets for their advantages.
 REFERENCES

Arcilla, R. G., Co, F. F., Remoto-Ocampo, S., & Tresvalles, R. M. (2013). Statistical Literacy for
Lifelong Learning. Abiva Publishing House, Inc.

Cryptocurrency wallet Definition. (n.d.).

https://www.bankrate.com/glossary/c/cryptocurrency-wallet/

Kagan, J. (2020, October 23). Digital Wallet. Investopedia.

https://www.investopedia.com/terms/d/digital-wallet.asp

Lai, P. C. (2016). Design and security impact on consumers’ intention to use single platform
E-payment. Interdisciplinary Information Sciences, 22(1), 111-122. 10.4036/iis.2016.r.05

Legaspi, R. (2020, September 17). E-Wallet Now Essential for Philippines Growing Number of
Mobile Users.
https://disruptivetechasean.com/big_news/e-wallet-now-essential-for-philippines-growing
-number-of-mobile-users/

Reiff, N. (2020, February 05). Blockchain Explained. Investopedia.

https://www.investopedia.com/terms/b/blockchain.asp

The World Bank. (2020). Philippines Digital Economy Report 2020: A Better Normal Under
COVID-19: Digitalizing the Philippine Economy Now. [PDF File].

Teo, S. C., Law, P. L., & Koo, A. C. (2020). Factors Affecting Adoption of E-Wallets among
Youths in Malaysia. Journal of Information System and Technology Management, 5(19),
39-50. : 10.35631/JISTM.519004.

Yang, M. Mamun, A. A., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Cashless
Transactions: A Study on Intention and Adoption of e-Wallets. Sustainability 2021, 13(2).
https://doi.org/10.3390/su13020831
 APPENDICES

Appendix A: Computation of Mean and Standard Deviation Values

𝑁1 = 52

𝑁2 = 52

For x̄₁

18 respondents answered strongly beneficial (5) = 18 * 5 = 90

10 respondents answered beneficial (4) = 10 * 4 = 40
14 respondents answered neutral (3) = 14 * 3 = 42
8 respondents answered somewhat beneficial (2) = 8 * 2 = 16
2 respondents answered not beneficial (1) = 2 * 1 = 2
90 + 40 + 42 + 16 + 2 = 190 / 52 = 3.653846154

For x̄2
48 respondents answered strongly beneficial (5) = 48 * 5 = 240
3 respondents answered beneficial (4) = 3 * 4 = 12
1 respondent answered neutral (3) = 1 * 3 = 3
240 + 12 + 3 = 255 / 52 = 4.903846154

For S₁
For S2
Appendix B: Complete Survey Questionnaire