USER`S PERCEPTIONS TO MOBILE-BASED SECURE

DIGITAL WALLET

RICO L. NAJARRO
LYNNE S. JOAQUIN
NESLY MAE N. NAVARRO
MARK WINRICK B. INOCENCIO
MARIELLE MANALO

Republic of the Philippines

TARLAC AGRICULTURAL UNIVERSITY
Camiling, Tarlac
December 2022
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CHAPTER I

INTRODUCTION

Background of the Study

Mobile phones have fundamentally changed how people work, interact with one

another, organize, and have fun. Your funds can be well-organized with mobile phones.

With only a few clicks, you can check the balances of your accounts, transfer funds, and

pay bills. In many cases, it's much more convenient than using your home computer or

going into your branch.

The individual experience a customer has while purchasing and utilizing a

particular product has a significant impact on how that customer perceives that product.

Customers would form a positive opinion of the brand if the quality, customer service,

pricing, logo, color, discounts, etc. were able to leave a great first impression on them.

However, if they had a negative experience with the brand, it would have a lasting effect.

People’s daily lives have become increasingly reliant on information technology.

One of the most recent breakthroughs is the mobile wallet, which is an application on a

mobile device that allows people to store and use payment and loyalty cards, pay bills,

make peer-to-peer payments, issue checks, keep e-receipts, and use coupons directly from

the app. The transactions must be carried out in a convenient, simple, and time-efficient

manner.

According to Shin (2009), mobile wallets could be used to store sensitive personal

information such as passports, PIN numbers, online shopping accounts, booking details,

and insurance policies in an encrypted or password protected format. As a result, the

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mobile wallet has the potential to do away with the need to carry a traditional wallet or

even a bag.

Electronic wallets are only now starting to gain popularity. Filipinos once

believed it to be nothing more than a con. There was a worry that users would misplace

their money. However, even banks have begun to create their own online banking

platforms and have let e-wallets to integrate with their banking platforms.

A digital wallet is a device, service, or software application that allows you to

trade digital currency units for goods and services with another person. This can include

using a computer to buy things online or a smartphone to buy products in a store. In other

cases, they can deposit money in the digital wallet prior to any transactions or link an

individual’s bank account to the digital wallet. The wallet may also hold the user’s

driver’s license, health card, loyalty card (s), and other forms of identification. They can

employ near-field communication (NFC) to wirelessly communicate credentials to a

merchant’s terminal (NFC).

A digital wallet enables consumers to conduct electronic business transactions

quickly and securely. It works similarly to a physical wallet. A digital wallet contains

both software and data. The software protects and encrypts personal information as well

as the actual transaction. Digital wallets are typically maintained on the client side and

are easily compatible with most e-commerce transactions. A server-side digital wallet,

also known as a thin wallet, is one that an organization generates for you and keeps on its

servers. The information component is essentially a database of user-supplied data. This

information includes your shipping and billing addresses, as well as other details.
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According to the Summit Credit Union, an e-wallet is a safe money management

tool or online platform that enables you to make in-store purchases, transfer or send

money, and track rewards programs. You can link the e-wallet to your bank account or

use a prepay option to pay as you go. It’s easier than you think to replace your physical

wallet (which includes mostly loose change and outdated receipts) with a digital wallet.

With a payment app, you may save all of your Summit credit and debit cards in your

phone’s digital wallet, ready to use online or in stores where you see the pay wave icon.

Mobile payments function in the same way as normal transactions do. You only need to

wave or tap your phone to finish.

According to Statista Research Department (2021), the Philippines is one of the

nations in Southeast Asia where mobile money transactions are consistently growing. In

the country, there were 24.6 million users of mobile wallets in 2020, and it is anticipated

that number will rise to 75.5 million by 2025.

Tarlac City, Tarlac, a first-class component city and the capital of the Philippines’

province of Tarlac. Tarlac City, with a total land area of 274.66 km2 (106.05 sq mi). The

city is accessible through the McArthur Highway (National Highway) and now connected

with Clark and Subic Freeport through the new SCT Expressway. Terrain is defined by

lowland where the city center is located and which form part of the great central plain of

Luzon Island. On the western part, however, are found hills and mountains. Tarlac River

traverses the western part of the city center. Tarlac City has a population of 378,895

people and is divided into 76 barangays according to the 2022 census

Significance of the Study

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Mobile-based secure digital wallets are becoming more and more well-liked as a

practical way to handle your money while on the road. The pandemic has demonstrated

that a mobile-based secure digital wallet is required for users to have access to financial

services and transactions from any location.

In many cases, digital wallets are even more secure than conventional payment

methods. Users can streamline their payment methods and the items they need to carry

when making purchases thanks to this. The providers of digital and mobile wallets shield

platform users with a range of access control and cybersecurity capabilities.

This research was established the significance of the study for everyone interested

in learning more about the use of an e-wallet, particularly for:

E-commerce

This study would help the companies, businesses, and individuals when it

comes to buying, selling goods and services using the Internet to transact easily

and to be more aware also that this research can help the e-commerce to increase

the transaction using digital wallet.

Financial Institution

This study was benefited to the banking institutions for the better

improvement of their financial services. It was also give an understanding and

information regarding using this platform as their transactions. This research

would make the financial institutions more convenient, speed, safe and secure for

those people who used it.

Students
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This research was helpful to the students to inform them regarding the

proper use of e-wallets and their benefits. It also help this study to the students’

activities or paperwork expenses to make it easier to pay using online payment.

Future Researcher

As for the future researcher, this study would give them more ideas about

the user's perception to mobile-based secure digital wallet in Tarlac City, Tarlac.

In addition, it would help them to determine the benefits of digital wallet.

Statement of the Problem

This study aims to determine the user’s perceptions to mobile-based secure digital

wallet in Tarlac City. Specifically, the study seeks to answer the following questions:

1. How may the socio-demographic profile of respondents be described in terms of:

1.1 age;

1.2 sex;

1.3 civil status;

1.4 highest educational attainment; and

1.5 occupation/employment?

2. What types of mobile-based secure digital wallet do the users commonly use?

3. What is the nature of transaction that the users mostly prefer to use?

4. What are the benefits of using mobile-based secure digital wallet for the users?

5. What are the problems the users usually encounter and perceived solution?

6. What strategies can be proposed to improve the use of digital wallet?

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Objectives of the Study

This research aims to determine the user's perceptions to mobile-based secure

digital wallets in Tarlac City.

Especially;

1. To describe the socio-demographic profile of the respondents in terms of age, sex,

civil status, highest educational attainment, occupation/employment;

2. to determine the type of mobile-based secure digital wallet do the users commonly

use;

3. to find out the nature of transaction that the users mostly prefer to use;

4. to know the benefits of mobile-based secure digital wallet for the users;

5. to identify the problems the users that they usually encounter and perceived solution;

and

6. to find out the strategies can be proposed to improve the use of digital wallet.

Scope and Delimitation

This study were focused on the user’s perception to mobile-based secure digital

wallets in Tarlac City, Tarlac. The participants of this study were composed of 100

respondent’s ages 18 to above who currently reside in Tarlac City. Therefore, the focused

of the study was not included underage respondents and non-users of mobile-based

secure digital wallet.

Conceptual Framework
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This study aims to determine the user's perceptions to mobile-based secure digital

wallets in Tarlac City. The researchers used the Input – Process – Output system

approach. The Input – Process – Output approach is composed of interrelated elements

that serve as a guide for the researchers.

This study were used Input-Output (IPO) Model to represent the framework of the

study, as shown in figure 1. It identifies the inputs, outputs, and the study’s process.

The first input of the study is the socio-demographic profile of the respondents to

give a transparent background and understand their perceptions of using e-wallets as

payment systems in terms of age, sex, civil status, highest educational attainment, and

occupation/employment. This study also found the types of mobile-based secure digital

wallet and nature of transaction as the second and third input. Then, the fourth input of

the study were determined the benefits of using a mobile-based secure digital wallet. And

the last input of the study were determined the problems of the users encounter in using

digital wallet and their perceived solution. This would help to understand the user’s

perception of digital wallet as a payment method and increase their knowledge. Thus, the

input of the study would also help to quickly achieve the output of the survey.

Afterward, this study were used the process of data collection to analyze the

critical information about the perception of the users of digital wallet in Tarlac City,

Tarlac. It would help the researchers to examine the outcomes and make predictions

about probabilities that could be useful for tabulating results if the data were arranged in

a table to simplify complex data and easily understand the data. This study also used

statistical data analysis to investigate the underlying patterns and trends that utilize

predictive analytics to determine every piece of population data.

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Finally, the output of this study was change the user’s perception to mobile-based

secure digital wallets in Tarlac City, Tarlac. Thus, when they implement the analyzed
• Socio-demographic
profile of the • Data Collection
respondents. (Questionnaire)
• Types of mobile-
• User’s perceptions
based secure digital • Tabulation of
to mobile-based
wallet. Results
secure digital wallet.
• Nature of transaction.
• Strategies can be
• Benefits of using • Statistical
proposed.
mobile-based secure Analysis of Data
digital wallet.
• Problems encounter
and perceived solution.

data effectively and efficiently, it would further the perception of digital wallet users as a

mode of transaction in Tarlac City, Tarlac. After the tabulation of results was finished;

the formulation of strategies that can be proposed to the goals and objectives of this

study. Inline, future researchers will use the baseline to create another study regarding the

user’s perception of digital wallet and their benefits, depending on the results of the first

study.

Input Process Output

Figure 1. A paradigm of the study

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Definition of Terms

This part would help to clarify the essential terms used in this research and

defined the meaning of the words. It can help the reader easily understand unfamiliar

words.

B2B Payments. Business to Business (B2B) payments are made when two firms

exchange money for goods or services. This is an inter-commercial exchange that

excludes consumers. Corporations, merchants, wholesalers, and start-ups are a few

examples of businesses.

Conventional card. A traditional credit card is plastic money like a cardholder;

by using this plastic money, the card can purchase goods and be used to pay for services

without using cash.

Credit Card. A credit card is a rectangular piece of plastic or metal provided by a

bank or financial services business that allows cardholders to borrow funds to pay for

products and services at merchants who accept cards.

Ease of use. The concept of ease of use refers to how simple a product or service

is to use.

E-commerce. Commonly referred to as electronic commerce or internet

commerce, is the term used to describe the exchange of money and data for the purpose

of transacting business through the internet.

E-wallet. An E-wallet is an electronic card used for online transactions through a

computer or smartphone. E-wallets need to be linked with the individual's bank account

to make payments.
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Online platform. This platform is easy to use; an online forum is a digital service

available on the Internet that facilitates interaction between two or more users where

demand and supply meet electronically.

Perception. It can be used by something or how you think about it and your

impression of it for awareness.

P2P Payments. Person to Person (P2P) payments are a method through which a

user can send money from his bank account to another person's bank account over the

Internet. The Internet or a mobile device are both viable options.

QR Code. QR stands for "Quick Response." While they may look simple, QR

codes are capable of storing lots of data. But no matter how much they contain, when

scanned, the QR code should allow the user to access information instantly – hence why

it’s called a Quick Response code.

Transaction. It is an agreement between the buyer and seller when exchanging

goods and services in return for money or when the money is exchanged for something.
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CHAPTER II

REVIEW OF RELATED LITERATURE AND STUDIES

After a thorough search by foreign and local researchers, this chapter reviews

related literature and studies. It would discuss the various concepts, ideas,

generalizations, findings, and other developments relating to the survey that are thought

to help raise awareness of the study.

Knowing a digital wallet has an advantage and impacts the customers’ financial

lives. The transaction is made easier using the digital wallet. An individual has the right

to choose what they want to utilize in payment for their transaction, and this payment

method is being used and explored more than ever.

Related Literature

The evolution of financial technology into digital payment has led to a new era of

cashless society. In line with the global trend, the Malaysian Government has been

committed to strengthen the agenda of a cashless society by actively promoting the use of

e-Wallet through the establishment of the interoperable credit transfer framework (ICTF)

policy in 2018. Although e-Wallet has been implemented since 2016, several previous

studies have found that the level of acceptance is still relatively low while the main

factors that influence the acceptance of e-Wallet in Malaysia still remain unclear.

Authentication based on knowledge (KBA) offers access to the device using a

single authentication process. There are security issues related to knowledge-based

authentication such as password schemes, where online consumers are required to pay in
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a single click. Password-based authentication is highly vulnerable to manipulation, where

intruders could use different methods to steal passwords, and it is not suitable for all

users.

To improve security, the e-wallet payment system employs complex

authentication procedures. The user’s identity must be verified, and only authenticated

users are permitted to access the system. The creation of trustworthy e-wallet

authentication is a critical challenge for securing user data and privacy. Authentication is

the most important aspect of e-wallet payment. Currently, knowledge-based

authentication is widely used in the community since it is different and user-friendly.

Based on the article that was published on 1st of July 2015 in The Economic

Times stating that, “Whether you have to pay for a taxi ride or teach your child the basics

of managing money, a preloaded mobile wallet could be the answer.” Rajesh Krishna

Balan, Narayan Ramasubbu, Giri Kumar Tayi studied in their paper “Digital Wallet:

Requirements and Challenges” (2006) that the requirements and challenges of deploying

a nationwide digital wallet solution in Singapore.

According to Dr. Poonam Painuly and Shalu Rathi in their paper, “Mobile Wallet:

An upcoming mode of business transactions” (May 2016) has explained about mobile

wallet, types and trends. They discussed about Role of mobile wallet in various sectors

like Banks, Retail and Hospitality. The paper explains the importance of mobile wallet

for Banks, Customers and Companies. In future scope it talks of mobile wallets becoming

a latest marketing channel in near future. And contribute highly in a seamless shopping

experience for the customers that increase their tendency for frequent and more

repurchases with delightful experiences.

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List of the Best Mobile Wallets in the Philippines

A mobile wallet, often referred to as an electronic wallet (e-wallet) or a digital

wallet, is a virtual wallet that people can access from their smartphone and use to store

credit cards, debit cards, credits, and even loyalty cards. Mobile wallets offer users a

convenient method to pay in-store, but they can only be used at merchants that the mobile

wallet service provider has authorized. In addition, people may utilize mobile wallet apps

to send money, make purchases, pay bills, and perform a variety of other tasks from the

comfort of their home. The researchers provide a type of mobile wallet utilized in the

Philippines:

1. GCash

This mobile wallet app allows users to send money, pay bills, buy load,

shop, and more from the comfort of their home. Users can send payments quickly

and easily with GCash. It’s an accessible mobile wallet that connects to a user

phone number and is safe and secure, making it available anytime and anywhere.

Over 20 million people use GCash, and there are 63,000 merchant partners

nationwide.

2. Coins.ph

This mobile wallet allows users to pay more than 120 bills with their

smartphone, including those from Meralco, VECO, and PLDT. NBI clearance and

Pag-IBIG contributions can also be paid here. It’s quick, safe, and totally free.

The most well-known cryptocurrency wallet, Coins, also enables users to buy

digital assets. It is used by millions of people globally. Access to crypto spot

trading pairs, whether fiat- or crypto-to-crypto, is simple.

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3. Maya

Users can manage their finances through Maya by saving, spending,

growing, and investing their money. It contains all the wallet features in addition

to a highly secure bank that will allow users to grow their savings. And when

individuals are prepared to give their money a boast, they can begin trading in

cryptocurrencies.

4. Dragonpay

Dragonpay provides innovative payment solutions to help merchants

accept and process payments online. The emphasis is on alternate payment

methods, including banks, mobile payments, ATMs, and physical payment

locations. Greater ease, improved fraud protection, and lower transaction fees are

all provided to merchants. Users can make purchases from merchants who accept

payments other than credit cards. It now enables over the counter (OTC) cash

payments at banks and retail establishments, physical ATM payments, and online

banking for the majority of the main local commercial banks. Application

Programming Interface (API) is provided to merchants, enabling them to take

payments from any supported source.

5. GrabPay

The most widely used super app in Southeast Asia is called Grab. Grab is

a vital everyday service provider for more than 670 million people in Singapore,

Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Cambodia, and

Myanmar. Deliveries (food, groceries, packages), Mobility (4-wheel, 3-wheel, 2-

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wheel), Financial Services (financing, insurance, cashless payments, and wealth

management), Enterprise, and other fundamental services are also provided.

GrabPay is a risk-free mobile wallet that lets you pay for local shops as

well as Grab services.

BSP Digital Payments Transformation Roadmap 2020-2023

Payments are becoming more common, more accessible, and more economical

thanks to the growing use of the internet and technical advancements, which is

accelerating the gradual transition to a cash-lite economy. Furthermore, the move to

digital payments has become necessary as physical distance laws become the standard in

the “New Economy” environment in light of the rapid start of the COVID-19 global

pandemic. Filipinos can lessen their need for mobility and avoid health concerns

associated with in-person and over the counter (OTC) financial transactions by using

digital payments responsibly and vigilantly. Because more and more purchases are being

made online, the expansion of Fintech companies involved in e-commerce will also be

facilitated by the increased use of digital payments.

I. Person to Person (P2P)

Recent advancements in digital payments made possible by the NRPS, agent-

banking, and online banking solutions have greatly helped P2P payments including

remittances and payments to single proprietors. These advancements have led to cost,

time, and effort savings as well as increased protection against theft and fund leaks.

But according to the BTCA survey, 80% of all remittances are still made OTC in
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cash, which results in significant costs and decreased productivity due to the manual

payment process.

II. Person to Business (P2B)

P2B payments have a lot of digitization potential. More than 100,000 merchants

accept digital payments, and millions of people do as well. But in this sector, digital

payments only account for up to 12% of total transactions, and they are especially

insignificant for micro, small, and medium-sized companies (MSMEs), which make

up the bulk of merchants. Furthermore, according to the BTCA, 65–75 million utility

payments are made by Filipinos each month, but less than 5% of these are done

online; the remainder are made in person using cash. Moreover, transaction expenses

can exceed the bill amount given the low average utility payment value (USD 10–30).

Thus, there is a strong case for switching to digital P2B payments through digital

wallets and online banking.

III. Business to Business (B2B)

Despite the massive volume and high transaction value of B2B payments, or

supplier payments, which offer considerable potential, about 85% of all supplier

payments are still made in cash. Payment gateways’ ability to digitize B2B

transactions offers enormous potential for efficiency gain, which could also spur

business growth and innovation.

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Why Merchants Must Support and Accept Digital Wallets

Retailers who care about providing their customers a flawless shopping

experience are increasingly realizing how important digital wallets are. Using a fully

integrated payment terminal is the simplest way to start taking and supporting them.

These terminals serve as integrated systems that do away with the requirement for

separate customer-facing displays, scanners, and cash registers. Additionally, you may

quickly combine them with the applications and apps you frequently use (e.g., loyalty

programs, inventory management, returns, etc.). This enables you to provide a more

seamless customer experience, boosting conversions and loyalty.

According to Stax, digital wallets offer a number of benefits for retailers as well.

Here are some of them:

• Faster service. Digital wallets can help you serve customers faster, thus increasing

satisfaction and keeping you from losing sales.

• Reduces errors. Sometimes, your cashier may enter the wrong amount in the card

reader. Overcharging customers creates a negative experience while undercharging them

can result in revenue loss. Digital payments can help to avoid this by keeping payments

error-free, particularly if you’re using integrated payments.

• Safe and secure. Not only are digital wallets a much safer option than handling cash or

physical cards, but they also provide a high degree of security. Because they come with

built-in authentication and encryption features, merchants carry less risk from these

transactions.

• Offers convenience. Digital wallets offer a smoother alternative, allowing customers to

breeze through the checkout process.

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• Targets the younger demographic. Old-school payment methods may well be deterrents

for Millennial and Gen Z shoppers. As these groups hold significant purchasing power,

catering to them requires being tech-savvy. Digital wallets can help you with just that.

Problems and Challenges in Using Digital Wallet

According to the research study of Rachna and Singh (2013), the issues and

challenges in electronic payment system are:

(1) Lack of Usability

Where the online forms require a lot of information from users and

using of complex website interface that make it difficult for the users to

adopt.

(2) Lack of Security

When e-commerce becomes a target for acquiring personal sensitive

information and/or stealing of money due to users having to provide sensitive

information online, such as credit card details, not knowing if its transmission

is secured.

(3) Lack of Trust

Which is due to fraud, misuse, and low reliability

(4) Lack of Awareness

When users avoid online mode of payments and still prefer the

traditional payment transactions.

(5) Issues with e-Cash

Which is not widely used due to limitations of the user and the vendor

should share the same bank that offers e-Cash.

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(6) Users Perception Regarding Acceptance of Electronic Payment Systems

Which could be because of the neglect in the needs of both the users

and vendors.

(7) Online Payments are not feasible in Rural Areas

Because people living in the rural areas are mostly not literate and not

educated on how to use computers, which causes them to become unaware of

technological innovations.

(8) Highly Expensive and Time Consuming

This is for the vendor side, where setting up an online payment system

would be costly, which include set up cost, machine cost, and management

cost among others than physical mode of payment.

Related Studies

Foreign

A server-side e wallet, also known as a thin wallet, is one that an organization

creates for and about you and maintains on its servers. E wallets are gaining popularity

among major retailers too due to the security, efficiency, and added utility it provides to

the end-user, which increases their satisfaction of their overall purchase (R. R. Apama,

2018).

Marielle Mekkaoui claims that consumers use mobile wallets mostly for reasons

of convenience. We are all aware that filling out forms can be tedious and time-

consuming, particularly on mobile devices. Using a mobile wallet means that the shopper

does not have to manually enter and billing, shipping, or payment details. They don’t
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even need to look for their bank account routing number or take out a credit card to

receive the security code.

Based on the studies of Pandey A and Singh A (2018), Security issue less

mechanical knowledge as well as unavailability of internet in many places are still a

major drawback for major uses of E Wallets in India. Education and training in terms

now and latest technology for its advancement in urban as well rural areas can help the

economy to be seized with its use in everyday life. Present study uses path analysis-based

model to identify problem, customer satisfaction and risk in using e wallets and to know

is there any direct or indirect relation between problem, risk and customer satisfaction.

According to Singh et.al, (2017) studied the consumer preference and satisfaction among

north Indian mobile wallet users through primary survey and questionnaire method.

In line with study of Jacob Davis et.al, (2017), he conducted an empirical

investigation in the aftermath of demonetization to measure the expedition of cashless

economy via e-wallet usage in Chennai City of Tamil Nadu. The researchers used a

survey method and sent structured questionnaires to e-wallet consumers to learn about

their attitudes toward seven major components of e-wallet usage, including privacy,

security, convenience, speed, accessibility, content, and design. The researchers

concluded that demonetization played a critical impact in increasing bank clients' use of

digital payment services.

In connection with the study of Punwatkar & Verghese (2018), the emergence of

the smartphone completely transforms the way how a person communicates and stay

connected with others over the past decade. By connecting to the internet, the smartphone

able to perform multiple tasks, such as online shopping, purchasing cinema tickets,
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sending documents, etc. The lifestyle of everyone has changed during this digital era. E-

wallet is one of the most innovative financial technology products that emerge in the

digital era. E-wallet defined as the electronic payment instruments that enable the users to

make transactions anytime anywhere, for instance, using E-wallet apps that installed in

their smartphone to purchase items at the convenience store.

Based on the findings of Yen (2017), features also make the user’s life more

comfortable and feeling stress-free. In the aspect of the business, the seller also utilized

the smartphone to change their distribution channel and selling network. Meanwhile,

banks also developed several applications or products that fit in the smartphone to

enhance their competitiveness in this technology era.

In accordance with the survey conducted by Lui & Tai (2016), the percentage of

smartphone users in Malaysia increase from only 14% in 2010 to 78% in 2018. Since the

smartphone became an important tool for human beings, and thus payments via

smartphones are no longer the strange phenomena in many countries.

Meanwhile, convenience and quick transactions are important factors that entice

customers to use an e-wallet for online shopping (Manikandan & Jayakodi, 2015).

Several key features of E-wallet are also mentioned by Varsha and Thulasiram (2016),

which include (1) easy to use, (2) low deposit amount, and (3) sharing of E-wallet’s

benefits with others. As one of the greatest innovations in this era, e-wallets are also

slowly replacing the use of cash in its physical form (Dalimunite et al., 2019). However,

Subaramaniam et al. (2020) argued that the elderly requires more time to adjust to E-

wallet services because holding cash makes them feel more secure.
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Local

According to the survey of Statista Research Department (2021), the majority of

respondents in the Philippines used GCash over other e-wallet brands. Mynt owns

GCash, which is a subsidiary of Globe Telecom Inc. The mobile wallet company had an

average of 33 million registered users in 2020.

In the Philippines, even with a strong top-down support from BSP, it is still

dependent on cash and cheque mode of payments (Nair, 2016). According to Better than

Cash Alliance (BTCA) (2015), out of the 2.5 billion (US$ 74 million) payments made per

month, only 1% are digital (Nair, 2016). As part of the initiatives of BSP to further

improve the electronic payment systems in the Philippines, they have developed the

National Strategy for Financial Inclusion that focuses on the importance of technology to

reach out to those who are financially excluded (Nair, 2016).

One of the reasons why this is the case is that there is poor banking access for the

reason that it is predominantly confined in urban areas, but because of the online

transactions are done through the use of financial cards, there are now fewer background

checks when availing of debit cards and/or credit cards, which became widely used (Nair,

2016). Furthermore, BSP had mandated banks to migrate their stripe payment to Euro

pay, MasterCard, and Visa (EMV) chip-enabled cards until 2017, which will help

increase customer security in using these financial cards through reducing card fraud

(Nair, 2016). Moreover, the National Retail Payment System (NRPS) aims to promote

interoperability on electronic payment transactions, enhance transparency and

accountability in financial transactions and allow provision of broader range of access in

financial services that could fill in the gap in the Philippine’s predicament on cashless
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transactions, which BSP hopes to help boost the electronic payments done per month

from 1% to 20%, as reported by Rappler in 2015 (Nair, 2016).

According to the Zoleta (2021) survey, more Filipinos are using e-wallets or e-

payment systems than credit cards. Platforms such as GCash and PayMaya allow

Filipinos to conduct digital financial transactions without the use of physical currency or

credit cards. Electronic money transfers, on the other hand, are expanding in the country,

although digital adoption, particularly for mobile payments, remains very low, especially

when compared to other countries in the region (Llanto et al., 2018). As the country

gradually adopted the usage of E-wallets, mobile payments remain low in comparison to

other countries, implying that E-wallets are already widely utilized in other countries, and

we are falling behind because we are still adopting.

Payment card use has also increased over the years, with approximately 21

million Filipinos owning prepaid and debit cards as of 2018.Mobile money has also

gained popularity, with 5 million accounts in 2018. Digital payments have also gained

traction with the acceptance by merchants of digital payments. Despite this, only about

120,000 merchants accepted digital payments in 2018.The introduction of mobile wallets,

such as GCash and PayMaya, ushered in new payment methods. The latest is QR code-

enabled payments, with about 60,000 merchants availing of it as of 2018. One thing

working for the promotion of the QR code platform is the cheaper hardware cost

compared to the Point of Sale terminal.

 24

CHAPTER III

METHODOLOGY

This chapter were define the study’s procedures and data sources. The researchers

examined the significance of the data and information acquired, presented, and analyzed

to meet the research objectives and questions. This chapter, on the other hand, would go

through the methodologies utilized by the researcher during the study process included in

Research Design, Location of the Study, Unit of Analysis, Respondents and Sampling

Procedures, Data Gathering Instruments, Data Gathering Procedures, and Analysis of

Data used to satisfy the researchers’ research plan and target respondents.

Research Design

The design of this study was descriptive research design to describe the socio-

demographic profile. The researchers was trying to reach conclusions about the

perception and experience of the person who uses digital wallet as a payment system

online, which can provide broad information from their point of view and, at the same

time, the reason why they use it.

Location of the Study

The researchers conducted this research at Tarlac City, Tarlac, a first-class

component city and the capital of the Philippines’ province of Tarlac. Tarlac City, with a

total land area of 274.66 km2 (106.05 sq mi), is located 125 kilometers north of Manila.

It is bounded on the north by the municipality of Gerona, on the east by the towns of

Victoria and La Paz, on the south by the towns of Conception and Capas, and on the west
 25

by San Jose town. The city is accessible through the McArthur Highway (National

Highway) and now connected with Clark and Subic Freeport through the new SCT

Expressway. Terrain is defined by lowland where the city center is located and which

form part of the great central plain of Luzon Island. On the western part, however, are

found hills and mountains. Tarlac River traverses the western part of the city center.

Tarlac City has a population of 378,895 people and is divided into 76 barangays

according to the 2022 census. Agriculture is the city's main source of income. Sugar, rice,

root crops, vegetables, livestock, and poultry are the city's main agricultural products.

The Luisita Industrial Park is home to large manufacturing firms that make rubber tires,

electronics, and automotive wiring sets.

The Malatarlak Celebration, held in January, is the most popular festival in the

city. The festival’s name was changed to Melting Pot Festival by Mayor Ace Manalang

in 2011. Even though it is still known by its previous name.

The researcher chose this location because it is the best place to conduct and

gather the data for this analysis. Tarlac City has a considerable population, making it

easier for researchers to locate possible respondents.

Unit of Analysis

This study only included the users of mobile-based secure digital wallet in Tarlac

City, Tarlac, aged 18 to 40 above, were chosen as respondents of this study because, in

keeping our objectives, researchers wanted to elaborate and analyze the user’s

perceptions to mobile-based secure digital wallet.

 26

The researchers will obtain information from 100 respondents that will be use in

to access the user’s perceptions regarding mobile-based secure digital wallet.

Respondents and Sampling Procedures

The population has been appropriately presented through the samples to ensure

precise results. Based on Borg, Gall, and Gall’s (1996) recommendation, this study will

use 100 respondents as the standard. The researchers decided to have an equal and fair

chance in selecting the respondents. The researchers used simple random sampling to

determine the respondents. Also, the researchers used the most straightforward methods

to select 100 respondents randomly.

Data Gathering Instruments

In this study, the researcher were created an online survey questionnaire to gather

the information. The data was collected using a Google Form, allowing the respondents

to access it easily. Google Forms is a free online tool from Google that allows users to

create forms, surveys, and quizzes, as well as edit and share them collaboratively. The

researcher would distributed the online questionnaire about the user’s perception of using

mobile-based secured digital wallets to the respondents by sending a link, email, or

embedding it into a web page for data collection. The questionnaire must be adopted in

the other survey. After the data is gathered, it will automatically be stored and saved in

the spreadsheet. There are a lot of online survey apps; survey Google Form is the best

and most free option.

 27

The researchers were generated an online information survey used to gather

information regarding the demographic profile of the respondents and to identify their

perception of using mobile-based digital wallets. In addition, to determine the users’

perceptions and to determine the types of digital wallet that the users commonly use. As

part of the study’s goal, researchers anticipated the responses that they will receive from

the survey.

Data Gathering Procedures

The researcher puts the information about the research variables at the beginning

of the study. The data was gathered by researchers using an instrument called an online

survey.

The researcher followed the procedures to fulfill the study’s goals. First, the

researchers used social media to randomly choose 100 e-wallet users in Tarlac City, who

will be subjected to a simple random sampling from the entire population. The

researchers has requested the authorization of 100 digital wallet users to complete an

online survey questionnaire. The online survey questionnaire were launched when

respondents agree to the data privacy consent form and receive the Google Form or email

link. The respondents proceeded to complete the study’s online survey form. Before

submitting the online survey form, respondents was required to confirm their general

consent. Researchers was automatically receive the record as part of the data collection

process. Finally, the researchers analyzed and interpreted the data acquired to tally the

results.
 28

Analysis of Data

The researchers used statistical methods to arrange and to evaluate the data

collected after gathering it. The statistical measures that will be utilize in this study,

together with their formulas, are listed below.

1. Frequency and Percentage Distribution

The data from the respondents will be recorded, categorized, tabulated, and

interpreted. The frequency and percentage of the demographic profile of the

respondents are calculated.

f
P= x 100 %
n

Where;

P = percentage (%)

f = frequency is the number of respondents

n = total number of respondents

2. Ranking

It is one of the quick and precise ways to acquire information to

understand how people perceive and value different people, products, and

animals. Ranking information is often gathered when people are asked to rank a

group of items using a certain preference criterion.

Furthermore, statistical tools will be utilized to obtain conclusions from this

study, which comprises the gathering, organization, and critical data review. This

analysis will be a type of quantitative research that aims to quantify the data and often

includes some descriptive data, such as the online survey data used in this study.
 29

This analysis will aim to compute the socio-demographic profile of e-wallet users,

identifying the user’s perception of using an e-wallet as their peer-to-peer payment

system. Also, to understand why they chose to use this payment system, as well as to

encourage those who cannot use an e-wallet.

According to the SAGE Research Methods, a percentage frequency distribution is

a visual representation of data that shows the number of observations for each data point

or cluster of data points. It’s a great way to express the relative frequency of survey

replies and other information. Tables, bar graphs, and pie charts are frequently used to

depict percentage frequency distributions. Thus, the researchers presented this method to

interpret the data gathered of the researcher.

Ethical Considerations

These are the following ethical standards that the researchers considered in the

study;

 The subjects/participants were informed that they could discontinue their

participation at any time without incurring any penalties.

 The subjects/participants may not have felt or perceived any level of

manipulation, coercion, constraint, or undue influence in any aspect of their

engagement in the study.

 There were no actual or perceived pecuniary inducements to participate that were

more than acceptable pay for items like transportation, exceptionally long time

demands, and so on.

 30

 There were no actual or perceived social inducements to participate that were

greater than an interest in the research, an investment activity, and so on.

 There were no actual or perceived disadvantages to not participating in the study.

 The people studied were aware that they were the subjects of the research.

 The study did not involve subjects/participants being momentarily misled about

the study’s aim, insufficient disclosure of the study’s purpose, or temporary

suppression of additional facts.

 Written consent was obtained from the subjects/participants, or if this is not

appropriate, an alternative way of obtaining informed consent will be employed.

 The free and informed consent procedures were used both at the outset of the

subject’s participation, and thereafter throughout the study (e.g., by notifying

subjects/participants of any later changes or developments that might influence

informed consent and seeking further consent to these).

 The informed consent material comprised a statement of the research purpose, the

identity of the investigators, the expected duration and nature of participation, a

description of research procedures, and a discussion of any predictable hazards

and benefits that may result from participation.

 Before consenting to engage, subjects/participants were fully informed of the

nature of their study involvement, as well as all aspects of the research that could

reasonably be expected to impact their willingness to participate.

 The information described in the study and the materials used to get consent must

be written in a language that the subjects/participants can understand.

 31

 The study did not include physical stress (or the anticipation of it), such as that

caused by heat, noise, electric shock, pain, sleep loss, physical deprivation, drugs,

alcohol, and so on.

 The researchers foresaw that the study might not result in the subjects/participants

experiencing mental discomfort (e.g., fear, anxiety, loss of self-esteem, shame,

guilt, embarrassment, becoming aware of personal weaknesses).

 The investigator made no attempt to influence the subjects’ or participants’

behavior or opinions over time.

 There would be no disclosure of personally identifying information regarding

subjects/participants without their informed consent (e.g., to teachers, doctors,

therapist, parents, employers, other researchers, etc.)

 The public presentation of the studies could not result possibly harm either the

subject/participant, or his/her membership group.

 In designing the study, the investigator took every precaution to balance potential

hazards to subjects/participants against potential benefits of the research.

 The confidentiality of the subjects/participants identity were not positively

ensured.

 If the study results are made public, someone other than the investigator may not

be able to deduce the subjects'/participants' identities.

The study included the use of personal health information, such as the Republic

Act no. 10173, also known as the Data Privacy Act of 2012, which outlines the

responsibilities of researchers to ensure safeguards that protect personal health

information specifically, limit their use to authorized personnel, and are not shared with
 32

any individual for any other legitimate purposes other than research. Without previous

approval, no personally identifiable information about responders would be disclosed.

 33

CHAPTER IV

RESULT AND DISCUSSION

The findings, analysis, and interpretation of the data acquired from the responses

to the questionnaires given to the respondents are presented in this chapter. According to

the exact queries posed in the problem statement, the aforementioned data were provided

in tabular form.

I. SOCIO-DEMOGRAPHIC PROFILE OF THE E-WALLET USERS

Table 1. Age of the respondents.

AGE FREQUENCY PERCENTAGE RANK

Below 20 30 28.3% 2

20 - 25 66 62.3% 1

26 - 30 5 4.7% 3

31 - 35 0 0% 6

36 - 40 3 2.8% 4

41 above 2 1.9% 5

TOTAL 106 100%

This table shows the age of the e-wallet users as the respondent of this study

entitled “User’s Perception to Mobile-Based Secure Digital Wallets”.

Based on the table, there were sixty-six (66) users with the age of 20-25 years old,

thirty (30) users with the age of 20 below, five (5) users with the age of 26-30 years old,
 34

three (3) users with the age of 36-40 years old, two (2) users with the 41 above years old

and no one user with the age of 31-35 years old.

This result shows that the most users of e-wallet are the young adults or sub-group

of millennials. According to Orly Bulshtein, the senior product manager of Rapyd (2018),

millennials are the largest adopters of eWallets compared to all other groups. Industry

surveys often present rates of 40% to 50% or more for ages 18–34, with much of the

demographic using digital payment options on a regular basis.

Table 2. Gender of the respondents

SEX FREQUENCY PERCENTAGE RANK

Male 42 39.6% 2

Female 64 60.4% 1

TOTAL 106 100%

The table 2 shows the gender of the e-wallet users in Tarlac City, Tarlac as the

participants of this study.

According to the table, there were sixty-four (64) female users and forty-two (42)

male users. It demonstrates that female e-wallet users outnumber male users.

According to a new study from Thrive Analytics, roughly 8 in 10 digital wallet

users are between the ages of 18 and 43, and that 57% are male. Mobile payment users

tend to be more evenly split by gender, though, according to a recent Nielsen study: with

females constituting 53% of mobile payment users. 

 35

Due to the higher percentage of female e-wallet users than male users, this study's

findings differ from those of other studies. The result of the study are support to the

Nielsen study and contradict to the result of the study from Thrive Analytics.

Table 3. Civil Status of the respondents

CIVIL STATUS FREQUENCY PERCENTAGE RANK

Single 96 90.6% 1

Married 8 7.5% 2

Widow 2 1.9% 3

Legally Separated 0 0% 4

TOTAL 106 100%

The table 3 shows the answers of the respondents regarding the civil status of the

e-wallet users in Tarlac City, Tarlac.

Based on the result, ninety-six (96) users were single, eight (8) users were already

married, two (2) users were widows and no one were legally separated.

It shows that single people prefer utilizing a mobile-based secure digital wallet

over using cash to make purchases. Therefore, it reveals that there are many single

because the result on table 1 (age) are mostly age are eighteen (18) to twenty four (24).

Table 4. Highest educational attainment of the respondents.

HIGHEST FREQUENCY PERCENTAGE RANK

EDUCATIONAL
ATTAINMENT
Elementary Graduate 2 1.9% 6

High School Graduate 7 62.3% 4

 36

Senior High School 47 4.7% 1

Graduate
Vocational Graduate 4 0% 5

College Graduate 20 2.8% 3

Master’s Degree 1 1.9% 7

Doctorate Degree 0 0% 8

Others 25 23.6% 2

TOTAL 106 100%

The table 4 shows the answer of the respondents according to their highest

educational attainment.

Based on the table, there were forty-seven (47) users were senior high school

graduate, twenty-five (25) users were not listed or answer others, twenty (20) users were

college graduate, seven (7) users were high school graduate, four (4) users were

vocational graduate, two (2) users were elementary graduate, one (1) user were master's

degree and no one user were doctorate degree.

This signifies that the most of the existing users of mobile-based secure digital

wallet were senior high school graduate and undergraduate because the age of most

respondents are eighteen (18) to twenty four (24). It means they are still taking their

degree in college and no one answer to doctorate degree because it’s how many years to

take it.

Table 5. Occupation of the respondents.

 37

OCCUPATION/ FREQUENCY PERCENTAGE RANK

EMPLOYMENT
Employed 21 19.8% 2

Self-Employed 9 8.5% 3

Government Employed 2 1.9% 4

Unemployed 74 69.8% 1

TOTAL 106 100%

Based on the findings, there were seventy four (74) of the respondents are

unemployed, twenty one (21) of the respondents are employed, nine (9) of the

respondents are self-employed, and two (2) of the respondents are government employed.

As a result, most of the digital wallet users are unemployed or not employed.

Also, based in the result in table 1, the majority of them are between the ages of eighteen

(18) and twenty four (24) , so they may be in the full-time student, so there are still many

who are not yet applicable to work. According to the findings in table 4, many of the

digital wallets have recently graduated from high school and are currently enrolled in

college.
 38

II. TYPES OF MOBILE-BASED SECURE DIGITAL WALLET

TYPES FREQUENCY RANK

GCash 99 1

Maya 15 2.5

PayPal 15 2.5

Eleven CLIQQ Pay 10 4

Lazada Wallet 8 5

Coins.ph 5 6

ShopeePay 3 7.5

DragonPay 3 7.5

GrabPay 1 9

Table 6. Mobile-based secure digital wallet that the respondents commonly use.

*Multiple Responses

Based on the result, ninety-nine (99) respondents use GCash, fifteen (15)

respondents use Maya and PayPal, ten (10) respondents use 7-Eleven CLIQQ Pay, eight

(8) respondents use Lazada Wallet, five (5) respondents use Coins.ph, three (3)

respondents use DragonPay and ShopeePay, and only one respondent use GrabPay.

According to the survey of Statista Research Department (2021), the majority of

respondents in the Philippines used GCash over other e-wallet brands. Mynt owns

GCash, which is a subsidiary of Globe Telecom Inc. The mobile wallet company had an

average of 33 million registered users in 2020.

The results of this study show that GCash is the most commonly used by the user

of mobile-based secure digital wallet in Tarlac City, Tarlac. Therefore, the findings of
 39

this study supporting the result of the survey of Statista Research Department.

III. NATURE OF TRANSACTION

Table 7. Nature of transaction that the respondents preferred to use.

TRANSACTION FREQUENCY RANK

Business to Consumer (B2C) 64 1

Business to Business (B2B) 46 2

Consumer to Consumer (C2C) 34 3

Consumer to Government (C2G) 16 4

Business to Government (B2G) 6 5

*Multiple Responses

Based on the table, there were sixty-four (64) respondents preferred to use digital

wallet in business to consumer, forty-six (46) respondents were preferred to use digital

wallet in business to business, thirty-four (34) respondents were preferred to use digital

wallet in consumer to consumer, sixteen (16) respondents were preferred to use digital

wallet in consumer to government, and six (6) respondents were preferred to use digital

wallet in business to government.

Business to consumer (B2C) is among the most popular and widely known sales

models. Michael Aldrich first utilized the idea of B2C in 1979, who used television as the
 40

primary medium to reach out to consumers.

As a results, business to consumer (B2C) are the most preferred nature of

transaction in using digital wallet in Tarlac City, Tarlac.

IV. BENEFITS OF MOBILE-BASED SECURE DIGITAL WALLET

Table 8. Benefits of digital wallet to the respondents.

CONVENIENCE FREQUENCY RANK

I use digital wallet because it make my

financial transactions process quicker 82 1

than cash.

I use digital wallet because it provides a

63 2
24 hour/s service.

I use digital wallet because it can transfer

47 3
money via QR code scanner.

*Multiple Responses

As shown on the table, were eighty-two (82) users answered that they use digital

wallet because it make their financial transactions process quicker than cash, sixty-three

(63) users answered they use digital wallet because it provides a 24 hours services and

forty-seven (47) users answered they use digital wallet because it can transfer money via

QR code scanner.
 41

According to Stax, digital wallets can help you serve customers faster, thus

increasing satisfaction and keeping you from losing sales.

This result shows that most of the users in Tarlac City used digital wallet because

it makes their financial transactions process quickly than using the cash as a Payment

method.

Mobile wallets are also quickly accessible and convenient, making it easier for

users to make payments. They are preferred by consumers who want more convenience

in paying for in-store purchases, instead of carrying physical wallets and cash to stores.

Once credit card information is added to the mobile wallet, users can use the funds to pay

bills and make purchases on the go.

Table 9. Benefits of digital wallet to the respondents.

EASE OF USE FREQUENCY RANK

Mobile-based digital wallet is useful tool

94 1
for conducting transactions.

I use digital wallet because it increase my

37 2.5
productivity.

It would be easy for me to understand the

37 2.5
use of an e-wallet

*Multiple Responses

The table 8 contains of how ease of use the digital wallet is, there were ninety-

four (94) users answered Mobile-based digital wallet is useful tool for conducting

transactions, thirty seven (37) users answered they use digital wallet because it increase
 42

their productivity, and thirty seven (37) users answered It would be easy for them to

understand the use of an e-wallet.

This results shows that the digital wallet is a useful tool in terms of conducting

transactions as their Payment method which ninety-four users of Tarlac city preferred.

Nowadays, a growing number of banks and other financial service companies

facilitate digital money transfers and other online transactions that wire or transfer money

between parties across long distances. Digital money’s assisted in the globalization of

economies around the world since trade is made more easily by sending and receiving

digital money.

Digital money eliminates the need to physically transfer money; furthermore,

banking is made much more convenient by allowing people to perform their personal

banking without even the need to visit a physical branch or carry cash.
 43

Table 10. Benefits of digital wallet to the respondents.

*Multiple Responses

Table 9 shows the benefits of digital wallet to users when it comes to budgeting.

Seventy-two (72) users answered that e-wallet is useful for checking balance account in

terms of incoming and outgoing money, fifty (50) users answered there are more promos

and vouchers that can be used on online transactions, fifty (50) users answered that they

use e-wallet because they can monitor their transaction, forty-five (45) users use e-wallet
GOOD FOR BUDGETING FREQUENCY RANK

E-wallet is useful for checking balance

account in terms of incoming and 70 1

outgoing money.

There are more promos and vouchers that

50 2.5
can be used on online transactions.

I use e-wallet because I can monitor my

50 2.5
transaction.

I use e-wallet to save money. 45 4

I use digital wallet because it helps me in

37 5
term of planning my budget.

to save money, and thirty-seven (37) users use digital wallet because it helps them in term

of planning their budget.

 44

This shows that an e-wallet is useful for checking balance account in terms of

incoming and outgoing money for users which helps them for budgeting.

Tap-to-pay purchases are usually the first thing that comes to mind when people

think about mobile and digital wallets. However, electronic funds can be used to pay for

many different kinds of goods and services. Depending on the type of wallet people have,

they can use their digital wallet to pay bills, transfer money, and even make deposits to

their bank account.

V. PROBLEMS AND PERCEIVED SOLUTION

Table 11. Problems the users usually encounter.

TECHNICAL PROBLEMS FREQUENCY RANK

System maintenance problem. 82 1

Internet connection problem. 70 2

*Multiple Responses

Table 10 shows the problems the users usually encounter. Technical problems

like internet connection and system maintenance problems are one of the problems the

users encounter in using digital wallets.

Based on the table, seventy (70) of the users have internet connection problem,

and eighty-two (82) of the users have system maintenance problem. It shows that the

technical problems the users usually encounter is system maintenance.

 45

The Philippines is positioned to make its own financial technology innovations as

Internet penetration continues to expand and the population—which is largely composed

of young adults—are now spending a lot of time online. However, poor Internet

connection and infrastructure hinder technological advances in the country, which has a

great potential to take advantage of huge online business opportunities.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier told the

BusinessMirror that good infrastructure and fast Internet connection are crucial for the

country to reach its potential when it comes to digital innovations in the financial sector.

Recent data, however, reveal a bleak outlook. Despite high costs, the Philippines’

average connection speed was only at 2.8 Megabits per second (Mbps) in 2015. This is

significantly lower than the global average connection speed of 5.1 Mbps, which makes

our Internet speed the second slowest in the Asia-Pacific region based on data from the

International Telecommunication Union.

E-wallet app development has probably brought a big revolution in today’s

competitive world. The ever-rising demand for digital wallet transactions has urged

businesses to develop an e-wallet app like PayPal. But, creating a successful e-wallet app

isn’t only about mobile app development and deployment; it is more than that, i.e., app

maintenance. Once you launch an application, you will need to monitor it constantly to

understand the users’ needs and improve the e-wallet app experience.

Developing an e-wallet application doesn’t mean the work is done. On the

contrary, one should constantly update it to ensure seamless app performance and speed.
 46

Not only this but there are several reasons why maintenance is essential after E-wallet

app development.

Table 12. Perceived solution in internet connection problem.

*Multiple Responses

Table 11 shows the perceived solution in internet connection problem the e-wallet

users answered. Fifty-two (52) answered reboot modems or wifi, twenty-seven (27)

answered get closer to router or remove the router closer to your device, twenty (20)

answered check your cable and shorten your length, one (1) user answered use cellular
PERCEIVED SOLUTION FREQUENCY RANK

Reboot modems or wifi 52 1

Get closer to router or remove the router

27 2
closer to your device.

Check your cable and shorten your length. 20 3

Use cellular data. 1 5

Change to mobile data 1 5

Reboot the phone. 1 5

data, one (1) answered change to mobile data, and one (1) answered reboot the phone.

The result shows that users usually reboot modems or wifi to fix internet

connection problem.

Table 13. Perceived solution in system maintenance problem.

 47

*Multiple Responses

The table 12 shows the possible solution that can help the system maintenance

problem, seventy-two (72) users answered check your Internet connection, forty-seven

(47) users answered ensure that your app is updated, thirty-two (32) clean up cache and

one(1) user answered wait for the maintenance to be completed

Based on the table the main possible solution is always check your internet

connection to avoid technical problems in transactions.

PERCEIVED SOLUTION FREQUENCY RANK

Check your internet connection 72 1

Clear up cache 32 3

Ensure that your app is updated 47 2

Wait for the maintenance to be completed 1 4

Table 14. Problems the users usually encounter.

ACCOUNT HACKING AND ONLINE FREQUENCY RANK

FRAUD
Online theft 36 1

Unauthorized access 28 2
 48

*Multiple Responses

The table 13 shows the answers of existing problems that the users usually

encounter. This is the Risk of online theft and somebody will have authorized to access

on their account using Digital wallet as their transaction.

Based on the table, thirty-six (36) answered the risk of online theft and twenty-

eight (28) were answered that somebody will have authorized to access their account. It

shows that the problem that the users usually encounter is the risk of online theft based on

the perception of users in Tarlac city, Tarlac.

Table 15. Perceived solution in risk of online theft.

PERCEIVED SOLUTION FREQUENCY RANK

Choose strong and unique password 34 1

Be wary of phishing scams 17 3

Choose trustworthy digital wallet application 20 2

*Multiple Responses

The table 14 consists of perceived solutions, where thirty-four (34) answered

choose strong and unique password, seventeen (17) answered be wary of pushing scams

and twenty (20) answered choose trustworthy digital wallet application.

In this table it shows that choosing a strong and unique password can help here in

perceived solution in risk to avoid online theft on this platform.

 49

Authentication based on knowledge (KBA) offers access to the device using a

single authentication process. There are security issues related to knowledge-based

authentication such as password schemes, where online consumers are required to pay in

a single click. Password-based authentication is highly vulnerable to manipulation, where

intruders could use different methods to steal passwords, and it is not suitable for all

users.

To improve security, the e-wallet payment system employs complex

authentication procedures. The user’s identity must be verified, and only authenticated

users are permitted to access the system. The creation of trustworthy e-wallet

authentication is a critical challenge for securing user data and privacy. Authentication is

the most important aspect of e-wallet payment. Currently, knowledge-based

authentication is widely used in the community since it is different and user-friendly.

Table 16. Perceived solution in somebody will have authorized to access on account.

PERCEIVED SOLUTION FREQUENCY RANK

Monitor your transaction 25 1

Review your credit score 6 2

Only use reputable website when making 13 3

 50

purchases

*Multiple Responses

The table 15 shows the perceived solution in somebody will have authorized

access on account. Twenty-five (25) users answered to monitor your transaction, six(6)

review your credit score and thirteen (13) only use reputable website when making

purchases.

It shows that it will help you to see or to secure your account to avoid the scam. It

is seen that monitoring your transaction can help to determine where you spend it or if it

is still in exact amount.

Digital wallets use advanced encryption to ensure that your payment information

never leaves your smartphone. And because digital wallets sit within your passcode-

protected device, with payments often only possible via fingerprint, they’re quite secure.

Many wallets also have additional security protocols, like two-factor authentication one-

time PINs, that can be used if needed. Still, it’s a good idea to stay vigilant—always keep

your passwords to yourself, monitor your accounts for suspicious activity, and make sure

that you’re able to disable your device if it gets lost or stolen.

VI. STRATEGIES CAN BE PROPOSE TO IMPROVE THE USE OF DIGITAL

WALLET

Table 17. Development Plan Template

 51

Program/ Objectives Activity Responsible Time

Person/s
Thrusts

Have a program - The objectives - The - 2 months

about the use of of the program is cooperation of preparation

digital wallet. to help the digital some involved

wallet users parties(ex.

regarding the LGU and

problem that they digital wallet

usually company).

encounter, Which

is its aim to

explain here the

possible courses

of action, do or

not to do to avoid

account hacking

or scams.

Post through - To promote People in - 3-4 weeks

online digital wallet social media preparation

-To spread some and digital

issue that need to wallet

focus on company
52
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CHAPTER V

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

This chapter provides the summary of findings, conclusions and recommendations

deduced from the result of the study. The overall objectives of this study were to describe

the user’s perceptions to mobile-based secure digital wallet in Tarlac City.

The study collected the data using online survey questionnaire through google forms

and a sample size of 106 Tarlac City-based users as respondents that targeted and

participated in providing responses in the study.

Summary of Findings

I. Socio-Demographic Profile

1. In terms of age, most users of e-wallet are the young adults or sub-group of

millennials. They were found range from 18-25 years old.

2. For the gender, based on data collected, females covered more than half of the

population compared to male users.

3. In terms of civil status, the researchers found out that most of the users were

single, and few of them were married.

4. As regards to highest educational attainment, most of the users were at least

senior high school graduate.

5. Occupation and employment? OPTIONAL

II. Types of mobile-based do the users commonly use

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6. The researcher found out that among 106 of respondents, there are 99 existing

users of Gcash which is the most preferred type of transaction that they

commonly use that utilize by Tarlac city, Tarlac users

III. Nature of transactions that the users mostly prefer to use.

7. For the findings of nature of transactions that the users mostly prefer to use, the

researcher finally identified that there is 64 respondents out of 106 answered

Business to Consumer (B2C) which is the most prefer to use when in terms of

transactions

IV. Benefits of using mobile-based for the users.

9. The researcher found out that the benefits of using digital wallet to the

respondents of Tarlac city, Tarlac in terms of convenience, ease of use, and good

for budgeting will identified.

● Convenience. Out of 106 respondents, 82 users of mobile based answered

I use digital wallet because it make my financial transactions process

quicker than cash

● Ease of use. Ninety-four (94) respondents answered mobile based digital

wallet is useful tool for conducting transactions is the rank 1.

● Good for budgeting. Seventy-two (72) users out of 106 respondents

answered that the eWallet is useful for checking balance account in terms

of incoming and outgoing money which is to determine where the flow of

money using of this transaction

V. The problems that the user usually encounter and perceived solution
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The finding of this part of the study on the problem that the users usually

encounter and the perceived solution will identified, like in technical problem

which show the perceived solutions in internet connection problem and in system

maintenance problem. And the next problem is the account hacking and online

fraud, which shows here the perceived solution in risk of online thefts and

solutions of somebody will have authorized to access on account .

The researcher found out that 70 users of digital wallet answered the internet

system maintenance is the technical problem that they encounter the most.

● Perceived solutions in internet connection, 52 users answered reboot

modems or wifi

● Perceived solutions in system maintenance, 72 respondents answered

check your internet connection

The researcher finally identified the problem of users usually encounter in

account hacking and online fraud, it sees that 36 of the respondents answered risk

of online theft based on the perception of the users in Tarlac city, Tarlac.

● Perceived solution in risk of online theft is 34 respondents answered the

choose strong and unique password

● Perceived solution in somebody will have authorized to access on account,

it shows that 25 respondents answered the monitor your account.

VI. Strategies can be propose to improve the use of digital wallet.

Conclusion
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The conclusion of the findings were made based from the four (4) research problems

which aim to describe the users perceptions to mobile Based secure Digital Wallets in

Tarlac City, Tarlac as perceived by users of Digital Wallets.

1. Researchers describe the socio-demographic profile of e-wallet users in Tarlac

City, Tarlac. Based on the result of the study, most users of e-wallet ranged from

20-25 year old, female, single and senior high school graduate. Most of them

preferred not to say their occupation/employment. It signifies that most of the

users of e-wallet are young adults or subgroup of millennials. This study also

proved that due to the higher percentage of female e-wallet users than male users,

this study's findings differ from those of other studies. The result of this study

shows that single people prefer utilizing a mobile-based secure digital wallet over

using cash to make purchases. Then, the adoption of payment instruments was

also demonstrated to be strongly and consistently predicted by education.

2. Based on the result of the study, most users in Tarlac City, Tarlac are existing

users of mobile Based secure Digital Wallet and most of them were preferred to

commonly used Gcash App.

3. By this, out of the five (5) types of transactions available, business to

consumer (B2C) is the type of transaction that users in Tarlac City, Tarlac prefer

to use when using a digital wallet when making commercial transactions

particularly online.

4. According to the study's findings in terms of convenience, ease of use, and

budgeting, the majority of Tarlac City users used a digital wallet because it

expedited their financial transactions more quickly than using cash as a form of
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payment. In addition, the digital wallet is a useful tool for carrying out

transactions as the preferred payment method of the ninety-four e-wallet users in

Tarlac City. Finally, an e-wallet allows users to examine their account balance in

terms of receiving and sending money, which helps them with budgeting.

5. The problems that users usually encounter while using Digital Wallet were

Internet connection, System maintenance, Risk of Online theft and somebody

will have authorized to access on your account. So, users usually reboot modems

or wifi to fix Internet connection problem, also to avoid technical problem in

transaction always checking your Internet connection can be helpful, then to

avoid online theft and someone to have access on your account, choosing a

strong and unique password can help, and also to prevent somebody to have

access on your account always monitor your transaction to determine where you

spend it or it is still in exact amount.

Overall, the researchers would describe the users perceptions to mobile based

secure digital wallet in Tarlac City, Tarlac as becoming popular which covers the

whole population, young adult or adult are existing users of digital wallet and

they are mostly preferred to use digital wallet as a form of payment while having

transaction and as well as it revealed that the benefits of using mobile Based

secure Digital Wallets outweigh the problems that users usually encounter

resulting a most of the respondent being a users of mobile based secure Digital

Wallets.

RECOMMENDATIONS
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As the study observed on the given findings and conclusions, the following

recommendations were made to implement the proposed strategies that can help the

digital wallet users, students and Future researchers. Moreover, through the light of the

foregoing conclusions, the researchers also made the following recommendations:

1. Implement the strategies proposed

To increase the awareness and knowledge of digital wallet users in Tarlac City

about the proper use of digital wallet, how to secure their account properly, and problems

they usually encounter in using digital wallets and what they can do to solve it. The

digital wallet company, and the government will need to implement a program to educate

the digital wallet users about the possible courses of action they need to take for the

problems they encounter and to avoid account hacking or scams.

To increase the e-wallet users and the awareness about the issues of e-wallet, a

digital wallet company should post through online to spread awareness about e-wallet and

its benefits and issues and what they can do to solve it.

2. Students. Students particularly at the college level, may need to educate them

regarding the proper use of digital wallets which can help them to secure their account

properly.

3. Future researchers. The study may also serve as a guide for future researchers. As with

the paper, others who want to extend the scope of this study may use the findings and

conclusions to start or further enhance existing studies related to this paper’s topic.