Department of Education

Region V - Bicol

DARAGA NATIONAL HIGH SCHOOL

Sagpon, Daraga, Albay

THE LEVELS OF EFFECTIVENESS OF ONLINE PAYMENT ADOPTION

ON MICRO, SMALL, MEDIUM ENTERPRISES IN DARAGA, ALBAY

A Senior High School Research Paper

Presented to the Faculty of Daraga National High School

Sagpon, Daraga, Albay

In Partial Fulfillment

Of the Requirements for the Subject

PRACTICAL RESEARCH 2

2024
 Batas, Luwen Jay

Deinla, Andrei Joseph

Gomez, Russmhel

Ang, Pia Annie

Apodaca, Elizabeth

Arugar, Princess

Ayleon, Francine Nicole

Bajamundi, Iris Roane

Baldon, Kim Nicole

 TABLE OF CONTENTS

Cover

Title Page I.

Table of Contents II.

Acknowledgement III.

Abstract IV.

I. INTRODUCTION 1

Statement of the Problem 4

Scope and Delimitation 5

Significance of the Study 6

II. REVIEW OF RELATED LITERATURE 8

Related Literature 8

Theoretical Framework 13

Definition of Terms 15

III. METHODOLOGY 17

Research Design 17

Research Locale 18

Research Instruments 18

Data Gathering Procedure 19

Ethical Consideration 19

Data Analysis 20

IV. RESULTS AND DISCUSSION 21

Result 21

I.
 Discussion 35

V.CONCLUSION AND RECOMMENDATIONS 36

Conclusions 36

Recommendations 36

References 38

Appendices 40

Appendix A: Letter for the Principal 40

Appendix B: Letter for the Respondents 41

Appendix C: Validation Rubic 42

Appendix D: Matrix of Revision 43

Appendix E: Survey Questionnaire 44

Appendix F: Documentations 48

I.
 ACKNOWLEDGEMENT

The researchers would like to thank and recognize the following individuals who supported

and guided them during the development of this study.

Mr. Jo Mark Azupardo, MAEd their Practical Research Adviser, for the support, guidance, and

suggestions that helped them improved their research paper.

Ms. Angelica Fontanoza, one of the Practical Research teachers, for her comprehensive

suggestions that made it easy for the researchers to finish their paper. The researcher would also like

to appreciate her kindness, which gives them the motivation and strength to continue the study.

Mr. June Paul Tino, their Inquiry, Investigation, and Immersion teacher, his support really gave

the researchers hope that they can accomplish this paper.

Mrs. Girlie Cabrillas, their adviser, for unending support, love, encouragement, and reminders.

12- ABM-3 Group 1, who dedicated themselves in this study, and their families, who never get

tired of understanding and supporting them financially.

The respondents from businesses, who voluntarily participated in this study, for their time,

honesty, and efforts in sharing their opinions that helped the researchers accomplish the study

And the Almighty God, who gave the researchers the strength to continue and made them

believe in themselves that they could. He is with them to overcome their struggles during the

fulfillment of the study.

Thank You!

II.
 ABSTRACT

TITLE: THE LEVELS OF EFFECTIVENESS OF ONLINE PAYMENT ADOPTION ON MICRO,

SMALL, MEDIUM ENTERPRISES IN DARAGA, ALBAY

Authors: Batas, Luwen Jay, Deinla, Andrei Joseph, Gomez, Russmhel, Ang, Pia Annie,

Apodaca, Elizabeth, Arugar, Princess , Ayleon, Francine Nicole, Bajamundi, Iris Roane,

Baldon, Kim Nicole

Date: May 2024

This research studies the levels of effectiveness and transformative impact of online payment

systems like GCash and PayMaya on Micro, Small, Medium Enterprises (MSMEs) in Daraga, Albay.

As technology gains broad use, it is crucial to assess how these payment methods are influencing local

enterprises. This study utilizes straightforward methods such as surveys and questionnaire with

business owners to explore their motivations for adopting online payment methods. The results

demonstrate that online payments not only enhance operational efficiency but also improve financial

performance by simplifying processes, boosting productivity, and increasing customer satisfaction.

Moreover, they contribute to better cash flow management and raise sales growth. Despite

encountering challenges such as technical difficulties among users, this study provides practical

strategies to effectively manage and overcome these challenges during adoption. Ultimately, the

adoption of online payment methods is proving not only effective but also transformative, paving the

way for growth and innovation in the digital technology world and setting the stage for continued

business success and transformation in Daraga, Albay.

Keywords: Online Adoption, Micro, Small, Medium, and Gcash

III.
 INTRODUCTION

Through encouraging technological innovation that resulted in the

creation of smart phones and high-speed internet, increasing productivity,

efficiency, and convenience, and increasing consumer confidence in online

transactions, globalization has greatly improved quality of life. As

globalization continues to shape the world, the adoption of cashless payments

has become increasingly prevalent. In the 1990s, the popularity of online

payments soared, providing a convenient and accessible way to conduct

transactions through online banking services. Busy individuals have been

attracted towards cashless payments due to their ability to be accessed from

anywhere with reliable internet connectivity.

Cashless transactions offer numerous benefits to both consumers and

businesses, with their widespread acceptance and high usage rates shaping the

future of finance. Despite the advantages, challenges such as security concerns,

technological barriers, and resistance to change may hinder widespread

adoption. Traditional businesses may be wary of potential risks like fraud or

data breaches, but online payments offer protection through security layers like

tokenization and SSL. By protecting user identity and financial data with

encryption and authentication techniques, cashless payments provide increased

security and help create a safer financial ecosystem.

Cashless payments offer simplicity and security, enabling users to make

secure, one-click payments using bank accounts or e-wallets, facilitating

personal and cross-border transactions. This method reduces expenses,

enhances customer satisfaction for businesses, and simplifies transaction

tracking. Furthermore, the digital nature of cashless payments facilitates the

1
implementation of loyalty programs, discounts, and personalized offers.

Merchants can utilize customer data from virtual wallet transactions to tailor

promotions, creating a more personalized shopping experience and fostering

customer loyalty.

According to Espeleta (2022), from its birth in the early 1990s to its

widespread use today, we have reached a stage where it is almost impossible

to envision a world without digital payments. The adoption of online payments

in Albay is a growing trend, driven by the convenience of digital financial

services for both consumers and businesses. The COVID-19 pandemic further

accelerated the popularity of online payments in Daraga, Albay, as face-to-face

interactions were limited. Gcash and PayMaya emerged as effective online

payment systems in Albay, providing immediate payments and easy expense

tracking. These systems have played a crucial role in maintaining business

economies and reducing contact with the virus, making them more efficient and

effective for individuals.,

To promote good governance, transparency, and operational efficiency,

a certain city government in the province of Albay has also implemented an

online payment mode using payers' credit cards. This move aims to reduce the

inconvenience of residents when transacting with the city hall. The adoption of

electronic payment and collection systems in government transactions will

enhance efficiency and effectiveness, providing additional payment options for

transacting clients.

This research aims to analyze data on the usage of online payment

methods, such as credit cards, digital wallets, and other electronic payment

systems. For the purpose of understanding the reasons behind the adoption or

2
rejection of online payment methods, surveys and interviews is conducted by

the researchers. The study also seeks to provide insights for businesses,

policymakers, and financial institutions on promoting the adoption of online

payment methods and addressing any barriers to their widespread use. The

study implemented a quantitative-descriptive research design in order to

present data on the factors influencing the adoption or rejection of online

payment methods.

STATEMENT OF THE PROBLEM

This research is designed to see the business owners who are using the

online payment under practical research. Especially, this is sought to answer the

following questions:

1. What are the levels of effectiveness of online payment adoption among

MSMEs in Daraga, Albay?

2. What is the impact of online payment adoption on the operational

efficiency and financial performance of MSMEs in Daraga, Albay?

3. What strategies can be implemented to enhance the effectiveness of

online payment adoption among MSMEs in Daraga, Albay?

SCOPE AND DELIMITATION

The study of online payment can be significant for a few reasons.

Knowing the advantages and disadvantages of using online payment can help

businesses make informed decisions whether they will use it or not. This can

help identify the risk and easiness of adopting online payment. Finally, the study

3
of online payment adoption on businesses in Daraga, Albay can also have

broader knowledge, as it can help individuals the risk and use of online payment

adoption.

The scope of this study is to analyze data on the usage of Online

Payment methods, such as digital wallets, mobile phone apps and other

electronic payment systems. The study will focus on the levels of effectiveness

of Online Payment Adoption in Micro, Small, Medium Enterprises and will take

place in the province of Albay, Daraga during the first semester of year 2023-

2024. The researchers of this study chose Daraga, Albay as the location of the

study because all of the researchers are living and studying within this area.

Hence, the data gathering can efficiently be conducted in Daraga through survey

questionnaire if the researchers choose their own province. The respondents of

this research are businesses who uses Online Payment, and will be conducted

in specific local area or infrastructure in Daraga, Albay, such as convenience

store, malls, fast food chains, and other enterprises that uses electronic payment

systems. Since the study's research design is descriptive, the researchers'

supposed respondents are two hundred eighty-nine (289) combined. Two

hundred twenty-seven (227) for Micro, fifty-one (51) for Small, and eleven (11)

for Medium Enterprises in Daraga, Albay. Excluded of this study are those who

do not own a business and not using electronic wallets. In addition, respondents

aged 18 years old and below are not included in surveys and questionnaires,

only those employees or owners of businesses that utilize new method of

payment are considered as participants. This conducted research within a

semester is used in order to make a framework for Online Payment Adoption

on businesses and its levels of effective usage in Daraga, Albay.

4
SIGINIFICANCE OF THE STUDY

The significance of the study identifies the people, organizations, or

stakeholders who will make use of and gain from the knowledge or data gathered

through research. This section addresses the significance of the research study's

outcomes for all parties involved, especially the study's beneficiaries like to:

Future Researchers- The study may serve as a useful reference to the future

researchers, who wish to conduct the same study.

Local Businesses - The findings may guide local businesses in Daraga, Albay, in

optimizing their online payment processes, potentially leading to increased efficiency

and customer satisfaction.

Policy Makers - The research outcomes may influence policymakers in shaping

regulations or incentives that promote the secure and widespread adoption of online

payment methods, contributing to economic growth.

Government and Non- Government Organizations - This study will encourage them

to create other payment methods to make it easier. Moreover, the information in this

study can be their basis in improving the usefulness of online payment.

Technology Developers - The study's results can be a resource for technology

developers, aiding them in innovating online payment solutions to better suit the needs

of businesses and consumers.

Bureau of Internal Revenue- aids in identifying businesses that engage in

online transactions and have a minimum of one year of experience in such payments

by analyzing the tax records of companies or local businesses.

Department of Trade and Industry - The Department of Trade and Industry plays a

crucial role in promoting consumer welfare by safeguarding their rights and interests

of consumers.

5
Department of Science and Technology- They get the information system in which

technical service are paid thru electronic payment. Hence, the study can be their

basis in adopting the online payment.

6
 REVIEW OF RELATED LITERATURE

In the ever-changing digital landscape of Daraga, Albay has witnessed

a transformation in financial transactions through the widespread utilization of

online payment systems. In this comprehensive review, the researchers delve

into the dynamic and effective nature of online payment adoption within the

local context as technology continues to shape the economic landscape of

Daraga, it is essential to comprehend the factors that influence the usage of

digital payments. Through a thorough analysis of existing literature, this study

aims to uncover valuable insights into the local attitudes, trends, and

determinants that drive the success or challenges of online payment systems in

Daraga. By carefully integrating these findings, the study sets out to provide a

clear understanding of the significant role online payments play in shaping the

financial ecosystem of this vibrant city.

In 2017, Rana et al. conducted a study that highlights two important

findings from existing research. The first is the potential of mobile phone-based

online payments to promote financial inclusion, especially in developing

economies. Secondly, their research acknowledges a gradual shift in consumer

payment preferences towards digital options, away from traditional cash

methods. This change is attributed to the emergence of new mobile and digital

payment technologies, which offer convenience and security. The growing

popularity and use of mobile payments suggests a wider acceptance of cashless

methods. This study is similar to the present study because it focuses on the

convenience of online payments. The only difference it has is it did not consider

the consequences of digital payments.

7
 According to Sarkar, 2019, many other countries are also making efforts

to transition from cash-driven economies to cashless ones. These countries seek

to reduce the prevalence of informal and unrecorded transactions, as well as to

enhance overall economic growth and development. From online transactions

to digital banking, the shift towards cashless systems necessitates a strong

emphasis on digital infrastructure and cyber security. Also, as stated by Sarkar,

consumers have readily embraced alternative payment methods beyond cash,

including cards, digital wallets, net banking, and mobile payment applications.

This shift reflects a growing preference for convenient and secure payment

options in the digital age. Sarkar's study is similar to the present study due to its

emphasis on the preference of using cashless payments. However, it differs on

the respondents which the present study focuses only on the business owners.

In the article written by De Luna, et. al, 2019, it discusses the evolution

of mobile payment systems in response to the digital and mobile-driven

business environment. It highlights the flexibility and accessibility of these

systems, emphasizing their potential to facilitate on-the-go transactions and

reach a broader rmarket. The authors (De Luna, et.al) suggest that mobile

payments will become increasingly user-friendly and widely adopted,

potentially streamlining transactions and becoming a fundamental aspect of e-

commerce. It points out that the convenience and security offered by digital

payment platforms are attracting consumers, leading them to choose digital

payments over traditional cash transactions. This study is similar to the present

study because it points out the factors on why consumers are slowly shifting

from cash transactions to online payment methods. However, it differs on the

8
respondents since this study focuses only on consumers while the present study

focuses on business owners.

According to Almamy, et.al, 2019, the use of mobile phones is widely

adopted in the Philippines, and this makes electronic transactions very

promising. This means that a lot of people could find it easy to do things like

pay for items or transfer money using their mobile phones, making electronic

transactions a great option for many people in the country. Additionally,

teaching people about electronic payments and showing that they are safe and

easy to use, will make more consumers feel comfortable using them. The article

by Almamy, et.al in 2019 also discusses the rise of online payment systems as

a convenient and inclusive financial solution that does not require a traditional

bank account. The article highlights the attractiveness of online payment

systems for their flexibility and convenience. Almamy's study is similar to the

present study due to the fact that it also considers the possible hindrance of using

online payment methods. It differs only on the respondents.

In their literature review, Yang et al. provide valuable insight on the

worldwide patterns of electronic commerce, honing in on the acceptance and

dependability of electronic payment methods. The study acknowledges the

pervasive rise of electronic commerce as a global phenomenon, with a particular

impact on developing nations. One significant finding of this research is the

increasing trust in electronic payment systems, especially in the Albay region,

reflecting a positive shift in consumer confidence. Additionally, the review

highlights the adoption of electronic wallets, which have simplified transactions

and facilitated quick and convenient online shopping through smart phone

application. This study is similar to the present study because it highlights the

9
reliability of online payment methods. The only difference it has is the present

study's scope is within Daraga, Albay.

According to the study conducted by Bulatao, et. al, 2022, the Online

Payment System has made it easier for businesses to accept payments from

customers and to transfer funds from one individual to another. With just a few

clicks of a button, they can already make payments without much of a need of

carrying cash or writing cheque. Consequently, it is crucial for businesses to

understand consumer's attitudes toward technology in order for them to market

their products. Having such knowledge of consumer attitudes will provide

valuable insights that the businesses can use to tailor their marketing strategies

and product offerings. This digital payment method empowers businesses to

reach international markets and tap into a wider customer base, while

consumers benefit from the convenience of making purchases and transferring

funds from the comfort of their homes. This study is similar to the current study

because it emphasize how convenient and easy for businesses to access online

payment. However, the study differs on the respondents.

In the year 2022, Espeleta conducted an intriguing investigation that

delved into the utilization of standard electronic payment methods. Focusing

primarily on popular apps such as Gcash and PayMaya, the findings offered

enlightening insights into the world of cashless transactions. The research

highlights the pivotal role played by user-friendly apps like Gcash and PayMaya

in simplifying the integration of digital payments for consumers. These two

widely accepted platforms are recognized as leading players in the realm of

online payments. The study also highlights the swiftness and efficiency of

electronic payments, emphasizing their practical benefits. Another noteworthy

10
finding was the variety of electronic payment options available, including

mobile wallets, bank cards, and mobile banking, highlighting the flexible and

accessible nature of these systems. The study is similar to the current study

because it offered enlightening insights about online transactions and how

effective online payment transaction is.

The study conducted by Moreno et al. (2022), offers valuable insights

into the usage and impact of digital wallets (e-wallets). The initial discovery

highlights a significant change in consumer behavior, illustrating a preference

for e-wallets over traditional credit cards, particularly during times of adversity

such as the current pandemic. This demonstrates the practicality and

convenience that electronic wallets offer in crisis situations. The second finding

delves into the influence of consumer perception on the adoption of e-wallets,

underscoring the psychological factors that shape attitudes towards electronic

payment transactions. Lastly, the literature emphasizes the increasing role of

digital wallets in enhancing the overall shopping experience for consumers,

positioning them as a cornerstone in modern commerce. This study is similar to

the current study because the study offers valuable insights about the usage and

impact of digital payment adoption. The study only differs to the part where it

focuses on consumer perspective.

In 2023, the article of Alshaher and his company wrote about several

factors that come into play when considering the acceptance of an electronic

payment system. It includes performance expectancy, effort expectancy, social

influence, facilitating conditions and price saving orientation. Moreover, the

perceived technology security, which encompasses concerns regarding privacy,

data protection, and the reliability of the payment system, plays a crucial role in

11
shaping users' willingness to accept electronic payments. Furthermore,

collaboration with financial institutions and regulatory bodies is crucial to

establish a robust framework that ensures the security, accessibility, and

convenience of electronic payments. By identifying barriers to adoption and

addressing them through targeted initiatives, such as educational campaigns and

incentives, these entities can encourage individuals to embrace electronic

payment methods. This study is similar to the current study because it focuses

on how effective online payment is.

In 2023, Marjorie H. Quero conducted a study that sheds light on the

current state of electronic wallets and online payment systems. Through this

research, we can see the remarkable developments in technology, particularly

in electronic wallets, which offer convenience and swiftness when it comes to

online transactions. The study delves into consumer perspectives, revealing

some apprehension towards cashless transactions, specifically on platforms like

Gcash and PayMaya. Despite this initial hesitance, the findings suggest that

consumers have the potential to transition from traditional cash-based methods

to digital alternatives. The study is similar to the current study because it

emphasizes how convenient and easy online payment is. However, the study

differs on where it focuses on consumers perspective.

12
 THEORETICAL FRAMEWORK

There are two theoretical basis that can support the research paper. The

technological Acceptance Model (TAM) and the Unified Theory of Acceptance

and Use of Technology (UTAUT). These theories guide the researchers in their

studies and provide a framework or conceptual foundation for understanding,

explaining phenomena, and behaviors of people being studied in research.

Fred Davis proposed the Technological Acceptance Model (TAM) in

the late 1980's. This concept specifies the casual interrelationships between

system design features, perceived usefulness, perceived ease of use, attitude of

using, and actual usage behavior. This concept was adopted by the two previous

studies relevant to the present study, entitled "Theory of reasoned action"

(1980) and "Theory of planned behavior" (1987). In their study, Technological

Acceptance Model develop to become a key model in providing systematic

structures for understanding predictors of human behavior toward potential

acceptance or rejection of the technology. Understanding the Technological

Acceptance Model (TAM) framework in this study allows organizations to

anticipate and address potential challenges in technology adoption. Hence, this

theory is relevant to the present study because the businesses who adopt online

payment whereas employee's acceptance of the new technology is influenced

by two factors: perceived ease of use and perceived usefulness. Perceived ease

of use refers to the individual who is dealing with new technologies who will

be free, easy to use, it's not hard and doesn't waste time.

On the other hand, Unified Theory of Acceptance and Use of

Technology (UTAUT), investigates technological acceptance as determined by

the influences of performance anticipation, effort expectancy, social influence,

13
and facilitating conditions. The theory argues that the Advance in information

Communication Technology (ICT) has unexpectedly changed the way

organizations conduct business. The use of technology in the workplace has

redefined inter- and intra-organizational communication and expedited

company operations to ensure benefits such as increased productivity, employee

well-being, and customer satisfaction. Several models/theories had been

proposed to comprehend technology acceptance, which explained the variance

in technology usage intention.

The Technological Acceptance Model (TAM) and the Unified Theory

of Acceptance and Use of Technology (UTAUT) guided the research study

because of their certain congruity in its nature. Cloud computing, which refers

to the method of storing and accessing data over the Internet (Donoghue 2018),

has been adopted as an effective foundation for other technologies that work

through networks to improve their services and functions (Psannis, Batalla, &

Ishibashi 2020).The adoption of cloud computing technology, for example, is

assisting banks in gaining a competitive advantage in the market by reducing

expenses, increasing profit margins, and simplifying application maintenance

and management (Elhag 2015). Furthermore, the growing a adoption of the

Internet and mobile technologies has aided in the creation of online banking and

digital payment systems (Alkhowaiter 2020). And understanding the TAM

framework in this workplace scenario allows organizations to anticipate and

address the potential challenges in adapting technology. On the other hand,

Unified Theory of Acceptance and Use of Technology (UTAUT), Performance

and effort expectations, as well as social influence, have a considerable and

favorable influence on the intention to utilize e-payment systems. Facilitation

14
conditions, are significantly and negatively linked with behavioral intention.

This study offers useful recommendations for policymakers, designers,

developers, and academics, allowing them to better grasp the components of

using electronic payment systems. This study created a model for estimating the

possibility of electronic payment adoption in a country that has not paid enough

attention to this issue. The UTAUT model is applied and evaluated.

DEFINITION OF TERMS

Adoption - The act of beginning to practice or use something, and adopting

someone or something, such as the act of adopting a child (Wikipedia, 2024).

In this study, it refers to the rapid acceptance of people and practice of first time

using online payment as a mode of transaction within Daraga, Albay.

Business - refers to organizations that seek profits by providing goods or

services in exchange for payment (Susan Ward, 2020). In this study, it refers to

some of the respondents who adopts online payments in their mode of

transaction when a consumer buys goods and purchase services.

Cashless - An act of relying on monetary transactions then use electronic means

rather than cash; not having or involving cash (Cambridge Dictionary, 2024).

In this study, it refers to the people who are not carrying a cash when purchasing

or availing goods or services.

Consumer - A person or a group who intends to buy and use goods and services

for their personal, social, family and other needs (Cambridge Dictionary, 2024).

In this study, it refers to the people who uses online payment as their mode of

paying for purchased needs, such as goods and services.

15
Economy - The wealth and resources of a country or region, especially in terms

of the production, consumption, distribution, and trade of goods and services. It

is the structure or conditions of economic life in a country, area or period

(Wikipedia, 2024). In this study, it refers to the state of life in Daraga, Albay

when businesses started to use online payments.

Merchant - A person or anyone who is involved in business or trade. It is a

buyer and seller of goods for profits, especially by trading goods with other

countries (Cambridge Dictionary, 2024). In this study, it refers to the business

who uses online payments.

Mobile Phones - A wireless handheld device that allows users to make and

receive calls and text messages, and is also allowed to make use of internet,

and access items like weather, news, and other updates (Margaret Rouse, 2022).

In this study, it refers to the instrument that plays a huge role in using online

payment as an alternative to paying using cash, such as coins and papers.

Online Payment - it refers to the electronic transfer of currency through the

internet. It is used by buyers of goods and services, and the sellers of those

goods and services (Nathan Calabrese, 2024). In this study, it refers to a mode

of payment that buyers usually use when they purchase goods online or offline

that uses technology when transferring money.

Technology - can be identified in a form of devices, such as laptops, phones,

and tablets (Aiden Ford, et. al, 2023). In this study, technology plays as a

medium of transaction of money from buyers to seller and seller to buyers, in

a form of mobile phones.

Transaction - A completed agreement between a buyer and a seller to

exchange goods, services, or financial assets in return for money (James Chen,

16
2023). In this study, it refers to the process of exchanging or transferring money

through online, specifically on platforms like Gcash and PayMaya, using

mobile phones or devices

17
 METHODOLOGY

Research Design

The researcher used a Quantitative Descriptive Research Design to

evaluate Online Payment Adoption in Daraga, Albay. Quantitative Descriptive

research is a suitable methodology when the primary objective is to discern and

explain the characteristics, frequencies, trends, and categories associated with a

particular phenomenon or subject (McCombes, Shona, 2019). This approach

becomes particularly beneficial when there is limited existing knowledge about

the topic or problem at hand. Before delving into the investigation of causative

factors or reason behind a phenomenon, understanding the specifics of how,

when, where it occurs becomes essential. Quantitative Descriptive research

serves as a foundational step, providing a detailed exploration of the subject,

paving the way for more intricate analyses aimed at unraveling the complexities

and reasons behind observed phenomena (McCombes, Shona, 2019). Applying

quantitative descriptive research design is highly suitable for investigating the

levels of effectiveness of online payment adoption in Albay, allowing the

researchers thoroughly comprehend the current state of online payment usage,

identify factors influencing adoption, and gain insights into user behaviors.

Through methods like surveys and questionnaires, the study captured nuanced

aspects of user preferences, challenges, and satisfaction levels, providing a

holistic perspective. Moreover, quantitative descriptive research facilitates

benchmarking and provides crucial information for policymakers and

businesses to formulate effective strategies tailored to Albay’s unique socio-

economic and cultural context, contributing to a comprehensive analysis of the

online payment landscape in region.

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Research Locale

Managers or owners from Micro, Small, Medium Enterprises near

Daraga, Albay are carefully selected for study. The needs for businesses include

active ownership and management of the businesses. For micro, 1-9 employees.

For small, 10-99 employees. For medium, 100-199 employees in relevant

industries, a minimum number of years in operation, and financial stability.

Businesses who use online payment transactions will be conducted in a local

area or establishment in Daraga, Albay. Such as fast food chains, corporation,

firms, street vendors, sari-sari store and other businesses that uses electronic

wallets and banks as their mode of payment. The researchers settled on the

nearest municipality — Daraga, Albay, as it offers various types of enterprises

that are the respondents of the study. Also, the researchers considered the

availability of the participants and the accessibility of the location. The

researchers also got 12 out of 54 barangays in Daraga, Albay for their

respondents.

Table 1.1

Barangay Micro Small Medium

Bagumbayan 25 0 1

Bañag 6 5 0

Bascaran 7 1 1

Busay 20 0 1

Ilawod 22 6 0

Kimantong 2 2 2

Kiwalo 5 0 0

Market Site 45 24 1

19
 Malabog 20 0 1

Peñafrancia 10 0 0

Sagpon 55 7 4

Tagas 10 6

TOTAL: 227 51 11

A total of two hundred eighty-nine (289) respondents. These are the

barangays where the researchers live at and somehow near to them to follow a

specific safety measure.

Research Instruments

A research instrument in the form of survey questionnaires is utilized to

gather information for the study. They used the validated questionnaires. The

questionnaire was done in three (3) ways. Through Google Forms, text

messages, and paper and pen. The researchers used these ways to gather data

on those enterprises who are hard to find or found online. The questionnaires

are made up of two-part questions covering different aspects related to online

payment adoption. The first section, participants are asked to indicate their

business’ profile information. In the second section, the questionnaires employ

a response scale consisting of 1 to 5 points, which 5 as the highest and 1 as the

lowest, allowing participants to choose their responses, also known as the likert

scale. Moreover, respondents are given the freedom to select multiple options

from the provided choices. This survey questionnaire served as tool for

gathering information to those who adopts online payment transactions.

20
Data Collection Procedure

The respondents of the study are the micro, small, and medium enterprises

(MSMEs) that used e-payment platform in their business operation. 12 out of

54 barangays in Daraga, Albay were chosen to be the respondents targeting a

total of two hundred eighty-nine (289) respondents categorized as two hundred

twenty-seven (227) micro, fifty-one (51) small, and eleven (11) medium

enterprises. In the process of data collection, the chosen instrument for data

collection is a survey questionnaire. The questionnaire consists of five (5) items

on the first part, and twenty-two (22) items for the second part. A total of

twenty-seven (27) items in the questionnaire. The data collection method

involves the use of text messaging for gathering information from the selected

respondents. The researcher sent personalized messages to identified

respondents, introducing the survey and requesting their participation. The

researchers have opted for questionnaires as a method to gather information and

insights aligned with the study’s objectives. Questionnaires offer a structured

approach to collecting data enabling the researchers to systemically gather

responses from the respondents of the study. The survey design will likely

involve carefully crafted questions that address the levels of effectiveness of

online payment adoption within the municipality of Daraga, Albay. This choice

reflects a strategic decision to employ a widely used and adaptable tool for

gathering valuable information in a systematic manner.

Ethical Consideration

All participants will be provided with a detailed explanation of the

study’s purpose, procedures, and potential risks in accordance with ethical

standards. Permission will be obtained from each participant prior to their

21
involvement in the study. Each will be assured that their participation is

voluntary and that they are free to withdraw from the study at any time without

penalty. To protect the confidentiality of the participants, all data to be collected

will be anonymized and stored securely.

Data Analysis

In the framework of this research. To assess the data, the researchers

used descriptive statistics, likert scale, and frequency counting. To summarize

and describe the data, descriptive statistics were used, offering a detailed picture

of the responses. This procedure enabled the researchers to locate

establishments that accept online payments. The researchers employ tables to

describe the results, which functioned as visual aids to successfully illustrate

the data. The researchers hoped to provide a clear depiction of the relative

popularity or preference of each choice among the participation by doing so.

This method prevented possible distortion that could result from

calculating percentages or totaling frequencies when using various approaches,

allowing the researchers to draw more exact and meaningful conclusions from

the study. The formula P = f/n x 100 is used to calculate percentages, where P

represents the percentage, f is the frequency of a certain response or category,

n represents the total number of respondents, and 100 is a constant used to

calculate the percentage. This formula is used to calculate the percentage

distribution of responses in each category or preference among micro, small,

and medium enterprises.

22
 RESULTS AND DISCUSSIONS

This chapter presents the results of the data gathered by the researchers.

Followed by the discussions of the study’s result, which are presented by

ranking approach in tables for visual representation following the order of the

study’s statement of the problem. Data were analyzed to measure and interpret

the levels of effectiveness of online payment adoption on micro, small, medium

enterprises in Daraga, Albay.

Businesses that have been in operation for less than a year were eighty-

eight (88) micro businesses, twenty-one (21) small businesses and zero (0) for

medium, totaling up for 37.71%. For businesses that have been in operation for

2-5 years equaled to 39.10% with eighty-eight (88) in micro, twenty-three (23)

in small, and two (2) in medium. Fifty-one (51) for micro, seven (7) for small,

and nine (9) for medium that have been in operation for more than 6 years

equaled to 23.18%, making it a total of 100%.

Based on this data analysis, majority of MSMEs businesses use Gcash

as their mode of payment method, small enterprises went first with 85%,

followed by micro enterprises with 63.15%, and medium enterprises with

42.31% of 100% overall total of MSMEs respondents. It also reveals that some

businesses use multiple online payment options, and not only one. Half of

overall respondents answered that they were using PayMaya, 23.84% of micro,

8.33% of small, and 23.08% of medium enterprises. While bank received the

lowest rating of how frequent it is being used, 34.61% of medium, 10.22% of

micro, and 6.67% of small enterprises uses bank. 2.79% of micro enterprises

responded that they are using other online payment app such as Alipay (1.3%)

and Shopeepay (2.6%).

23
 It indicates that out of 289 businesses, the highest percentage shown is

59.51% with 172 total respondents of micro, small, and medium enterprises that

operates their business less than a year, followed by 35.98% with 104

businesses that uses online payment for 2-5 years, and 4.49% with least number

of businesses that use online for 6 years and longer.

Table 2.1 Level of Effectiveness

A. Ease of Accessing Micro Small Medium Frequency Percentage

5 (very high) 125 32 10 167 57.78

4 (high) 70 15 1 86 29.75

3 (average) 27 4 31 10.72

2 (low) 4 4 1.38

1 (very low) 1 1 0.34

Total: 227 51 11 289 100%

In this level of effectiveness, there are 5 rate scale shown on the table

where 5 is the highest and 1 is the lowest. Majority in the table responded that

online payment is easy to access with 57.78% rate for 5, followed by 29.75%

rate for range of 4. It reveals that online methods speeds up the payment process

and can be accessed easily by all type of enterprises in Daraga, Albay.

Table 2.2

B. Time Saving Micro Small Medium Frequency Percentag

5 (very high) 106 22 9 137 47.40

24
 4 (high) 88 27 2 117 40.48

3 (average) 23 2 25 8.65

2 (low) 8 8 2.76

1 (very low) 2 2 0.22

Total: 227 51 11 289 100%

In this level of effectiveness, this table measures how consumers can save a

great deal of time on giving or passing money as payment to the receiver (businesses).

With this data, it presents that 47.40% of respondents voted for 5 and 40.48% for range

of 4 that indicates a good analysis that online payment method is actually a time saver

when purchasing.

Table 2.3

C. Convenience Micro Small Medium Frequency Percentage

5 (very high) 110 29 10 149 51.56

4 (high) 73 19 1 93 32.1

3 (average) 32 3 35 12.11

2 (low) 10 10 3.46

1 (very low) 2 2 0.69

Total: 227 51 11 289 100%

In this level of effectiveness, this table shows how convenient online payment

is when customers purchase products or services without carrying physical cash and

can effortlessly make payments for goods and services anytime and anywhere. The

table above reveals that this mode of payment can make transactions easier and this

25
provides convenience to the customers, with the rating of 51.56% (range of 5) and

32.1% (range of 4), total of 83.66% among all MSMEs respondents.

Table 2.4

D. Security Micro Small Medium Frequency Percentage

5 (very high) 88 26 8 122 42.21

4 (high) 83 18 3 104 35.99

3 (average) 39 6 45 15.57

2 (low) 13 1 14 4.84

1 (very low) 4 4 1.38

Total: 227 51 11 289 100%

In this level of effectiveness, this table meant to measure how secure online

methods are in obtaining money from customers or consumers. 42.21% (very high) and

35.99% (high) responded that this mode of payment is highly secured and safe when

customers make a purchase online or pay through this new method of transferring

payment.

Table 2.5

E. User- Micro Small Medium Frequency Percentage

friendly

5 (very high) 106 32 6 144 49.83

4 (high) 74 17 5 96 33.22

3 (average) 34 2 36 12.46

2 (low) 12 12 4.15

1 (very low) 1 1 0.34

26
 Total: 227 51 11 289 100%

In this level of effectiveness, with a total of 83.05% where 49.83% voted for

range of 5 (very high) and 33.22% for range of 4 (high), this table of online payment

adoption as user-friendly shows that this mode of payment is easy to use for transaction,

because of its convenience, speed and fast transaction and accessibility. Only 16.95%

responded that online payment is very low as user-friendly method of transaction

Table 3.1 Impact on Operational Efficiency (Positive)

A. Easy transaction Micro Small Medium Frequency Percentage

5 (very satisfied) 114 30 6 150 51.90

4 (satisfied) 81 16 5 102 35.29

3 (neither satisfied or 26 4 30 10.38

dissatisfied)

2 (dissatisfied) 4 4 1.38

1 (very dissatisfied) 1 1 0.34

Total: 227 51 11 289 100%

In table 2.2, the data shows how operational efficiency is influenced by simple

transactions and increased efficiency. In Micro, Small and Medium Enterprises, the

majority of the respondents were very satisfied while others were satisfied with easy

transactions (high satisfaction levels) at 51.90% very satisfied and 35.29% satisfied.

This means that efficiency is positively impacted by ease of transaction.

Table 3.2

B. Improved efficiency Micro Small Medium Frequency Percentage

27
 5 ( very satisfied) 90 32 9 131 45.32

4 (satisfied) 80 10 2 92 31.88

3 (neither satisfied or 44 8 52 17.99

dissatisfied)

2 (dissatisfied) 10 1 11 3.81

1 (very dissatisfied) 3 3 1.04

Total: 227 51 11 289 100%

In terms of improved efficiency, the majority of those enterprises taking the

survey are satisfied, with 45.32% saying they are ‘very satisfied’ and 31.88% satisfied.

This means that, chances are, improvements made have generally improved operations

in surveyed businesses, showing signs that they are increasingly becoming efficient.

Table 3.3

C. Boost customer Micro Small Medium Frequency Percentage

satisfaction

5 ( very satisfied) 83 20 8 111 38.41

4 (satisfied) 87 24 3 114 39.45

3 (neither satisfied or 48 5 53 18.34

dissatisfied)

2 (dissatisfied) 8 8 2.77

1 (very dissatisfied) 1 1 0.35

Total: 227 51 11 289 100%

In terms of boosting customer satisfaction, the majority of the respondents

across Micro, Small, and Medium enterprises expressed varying levels of satisfaction

28
with 38.41% being very satisfied and 39.45% are satisfied. This means that efforts to

boost customer satisfaction have been relatively successful.

Table 4.1 Impact on Operational Efficiency (Negative)

A. Hassle Micro Small Medium Frequency Percentage

5 ( very satisfied) 54 15 5 74 25.61

4 (satisfied) 46 20 6 72 24.91

3 (neither satisfied or 52 6 58 20.07

dissatisfied)

2 (dissatisfied) 35 9 44 15.22

1 (very dissatisfied) 39 1 40 13.84

Total: 227 51 11 289 100%

In terms of operational efficiency, negative factors such as hassle have been

identified. Some portion of the respondents reported dissatisfaction with 15.22% being

dissatisfied and 13.84 are very dissatisfied. This means there are areas that require

attention to enhance operational efficiency and customer satisfaction within these

enterprises. .

Table 4.2

B. Technical issue Micro Small Medium Frequency Percentage

5 ( very satisfied) 25 12 6 43 14.87

4 (satisfied) 52 12 5 69 23.87

3 (neither satisfied 73 11 84 29.06

or dissatisfied)

29
 2 (dissatisfied) 39 12 51 17.64

1 (very 39 4 43 14.87

dissatisfied)

Total: 227 51 11 289 100%

In terms of technical issues, majority of the respondents with 29.06% are neither

satisfied or dissatisfied. The significant portion of the respondents reported

dissatisfaction with technical issues, highlighting areas that require attention to enhance

operational efficiency.

Table 4.3

C. Limited accessibility Micro Small Medium Frequency Percentage

5 (very satisfied) 44 14 6 64 22.14

4 (satisfied) 74 14 5 93 32.17

3 (neither satisfied or 54 10 64 22.14

dissatisfied)

2 (dissatisfied) 28 9 37 12.80

1 (very dissatisfied) 27 4 31 10.72

Total: 227 51 11 289 100%

In the data presented in table 2.2 highlights the impact of limited accessibility

on operational efficiency within Micro, Small, and Medium enterprises. The responses

of those enterprises taking the survey indicate varying levels of satisfaction 32.17%

satisfied and 22.14% very satisfied. However, there is a notable percentage of

dissatisfaction, with 12.80% being dissatisfied and 10.72% very dissatisfied,

30
suggesting that there are challenges in accessibility that need to be addressed to improve

operational efficiency.

Table 5.1 Impact on Financial Performance (Positive)

A. Improved cash flow Micro Small Medium Frequency Percentage

management

5 ( very satisfied) 53 25 9 87 30.10

4 (satisfied) 27 19 2 48 16.60

3 (neither satisfied or 57 4 61 21.10

dissatisfied)

2 (dissatisfied) 13 2 15 5.19

1 (very dissatisfied) 7 1 8 2.76

Total: 227 51 11 289 100%

The data in table 2.2 shows that efforts to improved cash flow management have

been relatively successful. The majority of the respondents reported satisfaction with

30.10% being very satisfied and 16.60% satisfied, indicating a positive impact on

financial performance within these enterprises.

Table 5.2

B. Cost savings Micro Small Medium Frequenc Percentage

5 (very satisfied) 52 24 10 86 29.75

4 (satisfied) 76 14 1 91 31.48

3 (neither 62 12 74 25.60

satisfied or

dissatisfied)

31
 2 (dissatisfied) 27 1 28 9.68

1 (very 10 10 3.46

dissatisfied)

Total: 227 51 11 289 100%

In terms of cost saving, the responses indicate a positive trend, with 29.75%

being very satisfied and 31.48% satisfied. This means there is a significant level of

satisfaction with cost saving measures implemented in these enterprises. This suggests

that efforts to reduce costs have been effective and well-received by the respondents.

Table 5.3

C. Increased sales and Micro Small Medium Frequency Percentage

revenue

5 (very satisfied) 39 27 9 75 25.95

4 (satisfied) 67 10 2 79 27.3

3 (neither satisfied or 72 11 83 28.71

dissatisfied)

2 (dissatisfied) 37 2 39 13.49

1 (very dissatisfied) 11 11 3.80

Total: 227 51 11 289 100%

In terms of increased sales and revenue, the majority of respondents expressed

satisfaction with 25.95% being very satisfied and 27.30% satisfied. This means that

strategies implemented to boost sales and revenue have produced positive results,

contributing to the financial performance and growth of the businesses surveyed.

Table 6.1 Impact on Financial Performance (Negative)

32
 A. Transaction fees Micro Small Medium Frequency Percentage

5 (very satisfied) 46 18 10 74 25.60

4 (satisfied) 65 20 1 86 29.75

3 (neither satisfied or 72 7 79 27.33

dissatisfied)

2 (dissatisfied) 33 5 38 13.14

1 (very dissatisfied) 11 1 12 4.15

Total: 227 51 11 289 100%

The table on impact of financial performance in negative way displays an

outcome about the level of satisfaction of businesses in terms of transactions fees.

Overall, there were 74 (25.60%) very satisfied enterprises, 86 (29.75%) satisfied

enterprises, 79 (27.33%) enterprises which is neither satisfied nor dissatisfied, 28

(13.14%) dissatisfied enterprises, and 12 (4.15%) very dissatisfied enterprises.

Table 6.2

B. Customer refunds & Micro Small Medium Frequency Percentage

returns

5 (very satisfied) 26 22 8 56 19.37

4 (satisfied) 59 14 3 76 26.29

3 (neither satisfied or 75 7 82 28.37

dissatisfied)

2 (dissatisfied) 48 7 55 19.03

1 (very dissatisfied) 19 1 20 6.92

33
 Total: 227 51 11 289 100%

In terms of customer refunds and returns, most of the businesses among micro,

small, and medium enterprises were neither satisfied nor dissatisfied. This accounted

for 82 enterprises or 28.37%. In addition to that, there were also a remarkable number

of enterprises expressing how satisfied they are, with 56 (19.37%) indicating that they

are very satisfied and 76 (26.29%) stating that are satisfied. This suggests that a

significant number of enterprises have not yet met the satisfaction that they want.

Table 6.3

C.Compatibility cost Micro Small Medium Frequency Percentage

5 (very satisfied) 28 21 9 58 20.06

4 (satisfied) 72 16 2 90 31.14

3 (neither satisfied or 58 9 67 23.18

dissatisfied)

2 (dissatisfied) 41 4 45 15.57

1 (very dissatisfied) 28 1 29 10.03

Total: 227 51 11 289 100%

The result on compatibility cost shows that among the chosen respondents were

mostly satisfied which counted 90 enterprises or 31.14% out of all the respondents. It

implies the online payment applications were working effectively and serving its

purpose. However, there were still a number of enterprises presenting their

dissatisfaction, with 45 (15.57%) dissatisfied and 29 (10.03%) very dissatisfied

34
 Table 7.1 Strategies

A. Educational & training Micro Small Medium Frequency Percentage

5 ( Strongly agree) 74 25 8 107 37.02

4 (agree) 64 19 3 86 29.75

3 (undecided) 56 5 61 21.10

2 (disagree) 25 1 26 8.99

1 (strongly disagree) 6 1 7 2.42

Total: 227 51 11 289 100%

When it comes to educational training, a significant number of micro, small,

and medium enterprises expressed how they strongly agreed on this matter. There were

107 or 37.02% of respondents who strongly agreed and 86 or 29.75% who agreed. It

can be concluded that they highly value and recognize the importance of educational

training.

Table 7.2

B. Financial incentives Micro Small Medium Frequency Percentage

5 ( Strongly agree) 65 20 10 95 32.87

4 (agree) 69 24 1 94 32.52

3 (undecided) 43 5 48 16.60

2 (disagree) 34 1 35 12.11

1 (strongly disagree) 14 1 15 5.19

Total: 227 51 11 289 100%

35
 Out of the total surveyed enterprises, 95 (32.87%) strongly agreed and an

additional of 94 (32.52%) agreed with the idea of financial incentives. The findings

indicate a positive potential reception towards financial incentives among micro, small,

and medium enterprises. However, it is also worth noting that there are varying

perspectives that need to be considered

Table 7.3

C. Enhanced security Micro Small Medium Frequency Percentage

measures

5 (Strongly agree) 67 24 9 100 34.60

4 (agree) 77 20 2 99 34.25

3 (undecided) 42 6 48 16.60

2 (disagree) 26 0 26 8.99

1 (strongly disagree) 14 1 15 5.19

Total: 227 51 11 289 100%

In terms of enhanced security measures, the result presents a large amount

among micro, small and medium enterprises who express their agreement. A number

of 100 (34.60%) of businesses strongly agreed and 99 (34.25%) of businesses who

agreed. On the other hand, it is noticeable how some of the respondents indicates how

they disagree on this matter

Table 7.4

D. Technical support & Micro Small Medium Frequency Percentage

customer service

5 ( Strongly agree) 76 22 9 107 37.02

4 (agree) 70 21 2 93 32.17

36
 3 (undecided) 41 7 48 16.60

2 (disagree) 25 0 25 8.65

1 (strongly disagree) 14 1 15 5.19

Total: 227 51 11 289 100%

In the table of technical support of customer service, the data provided indicates

that most of the respondents agrees, having 37.02% (107 enterprises) who strongly

agreed and 32.17% (93 enterprises) who agreed. This means that most of the

respondents are in favor of having proper technical support in place to assist customers.

The findings highlight a positive attitude among the respondents towards the inclusion

of technical support in their customer service strategies.

Table 7.5

E. Multiple payment options Micro Small Medium Frequency Percentage

5 (Strongly agree) 70 22 10 102 35.29

4 (agree) 72 21 1 94 32.52

3 (undecided) 49 5 54 18.68

2 (disagree) 20 2 22 7.61

1 (strongly disagree) 16 1 17 5.88

Total: 227 51 11 289 100%

As presented in the table, a notable number of 102 (35.29%) enterprises strongly

agreed and an additional of 94 (32.52%) enterprises agreed in terms of multiple

payment option. There were some that are still undecided and some that disagrees on

this matter. This suggests that while the majority of enterprises recognize the value and

37
benefits of providing multiple payment options, there are still a significant number of

businesses that are unsure or have reservations about this approach.

DISCUSSIONS

The data from MSMEs shows a strong positive response towards online

payment systems, highlighting several benefits such as accessibility, convenience, and

time-saving. Most enterprises find these systems easy to access and use, which helps

streamline their operations and reduces the time spent on transactions.

Security and ease of use are highly rated, indicating that many enterprises trust

these systems and find them simple to operate. This trust and simplicity contribute to

improved operational efficiency and customer satisfaction. Many businesses report

being very satisfied with the ease and speed of online transactions, although some

challenges like technical issues remain. These issues need attention to further improve

business operations and customer satisfaction.

While many businesses are satisfied with how online payments improve cash

flow and reduce costs, transaction fees have mixed reviews. Some enterprises are

satisfied with the fees, while others are not, suggesting that fees could be a barrier to

greater satisfaction. Customer refunds and returns also have mixed satisfaction levels,

indicating that businesses still face challenges in these areas.

Multiple payment options are generally favored by enterprises, although some

remain undecided or have reservations. This suggests that while many see the benefits

of offering various payment methods, some businesses are unsure or hesitant about

adopting these options.

Educational training is highly valued among enterprises, with many strongly

agreeing on its importance. Financial incentives are also viewed positively, showing

that they can help support business operations. Enhanced security measures receive

38
strong support, highlighting the importance of security in building trust in online

transactions. Wholesome technical support is also important, with many businesses

favoring comprehensive support systems to assist customers.

Overall, the data suggests that online payment systems significantly benefit

MSMEs by improving efficiency, customer satisfaction, and financial performance.

Despite these clear advantages, there are areas that need further attention, such as

addressing technical issues, transaction fees, and improving accessibility. Focusing on

these areas will help businesses fully leverage the benefits of online payment systems

and support their growth and success in an increasingly digital world.

39
 CONCLUSION AND RECOMMENDATIONS

This chapter present the summary pointing out the important derived in the

conduct of the study which is The level of Effectiveness of Online Payment Adoption

on Micro, Small, and Medium Enterprises in Daraga, Albay. It also provides

recommendations for the institutions and future researchers.

Conclusion

Based from the result, the following conclusion are derived.

1. The researchers have identified many businesses who are very satisfied with

the security and ease of online payment. Some enterprises on the other hand,

were only satisfied with how online payments improve cash flow and reduce

cost. Although enterprises are in favor of multiple payment options, there are

some that still remain undecided who rated a scale of 3. Furthermore, other

factors like educational training, financial incentives, and enhanced security

measures are highly valued and viewed positively by these enterprises.

2. The high levels of accessibility and acceptance among business owners

highlight the significant convenience and time-saving benefits of digital

transactions. This shift has not only enhanced operational efficiency but has also

positively impacted financial performance, leading to simplified processes,

increased productivity, higher customer satisfaction, improved cash flow

management, and stimulated revenue growth

3. Despite challenges like user technical difficulties, this research has

successfully identified strategies to manage and address these issues during

implementation.

40
 4. Online payments in growth and innovation in the digital economy setting the

stage for continued success and transformation in business practices, and continued

consumer satisfaction throughout the years.

5. This level of satisfaction indicates that streamlined transactions increase

productivity and customer satisfaction, which has an advantageous effect on operational

efficiency. Online payments are contributing to the growth and innovation of the digital

economy and setting the stage for ongoing success and transformation in business

practices over time.

Recommendations

In consideration of the results of the research, the following recommendations

were made to further improve the quality of data and analysis.

1. The Micro, Small, and Medium Enterprises Businesses should give consideration on

using online payment methods for convenient and seamless way to exchange money,

and reduce the reliance on traditional and time consuming payment methods such as

exchanging cash or checks.

2. Managers of MSMEs must conduct different strategies on using effective and

efficient online payment methods such as technical support and training for employees,

and customer services.

3. The future online payment users are advised to gather several data about the

effectiveness of online payment method and which of these are safe and secure to use

and can give user or consumer satisfaction.

4. The Technology Developers must implement stronger security measures to protect

users' personal information and financial data from unauthorized access, misuse,

exploitation, and such with encryption, tokenization and authentication techniques and

prevent fraud or dishonest schemes.

41
5. The Policy Makers are recommended to enforce strict safety measures such as data

protection standards for consumer's rights and implement public awareness campaigns

and educational initiatives and provide clear and consistent regulatory frameworks

regarding the benefits and level of effectiveness of online payment adoption to MSMEs

Businesses.

6. The researchers recommend to future researchers of online payment adoption that

the collection of data can also be done in business-centered areas like Legazpi City.

Through this, it would be easier to make conclusions for the entire MSMEs community

as the recommended study would involve more qualified respondents. It is also

recommended to define other parameters to be analyzed to collect more and diverse

pieces of information regarding the population.

42
 BIBLIOGRAPHY

Abrahao, Ricardo de Sena, 2016. Intention of adaptation of mobile payment:

An analysis in the light of Unified Theory of Acceptance and Use of
Technology (UTAUT) Retrieved from:
https://www.sciencedirect.com/science/article/pii/S180920391630033
X

BYJU'S, Concept and Features of Business Retrieved

from:http://tinyurl.com/усби2mc5
Cambridge Dictionary.
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Cambridge Dictionary
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Cambridge Dictionary
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https://shorturl.at/ioOXY
Cambridge Dictionary
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http://tinyurl.com/c4pv6eah
Davis, Fred, 1987. User Acceptance of Information Systems: The
Technological Acceptance Model (TAM)
Retrieved
from:https://deepblue.lib.umich.edu/bitstream/handle/2027.42/35547/
GOCARDLESS, 2023 Online Payments: An
Introduction Retrieved from:
https://rb.gy/volemy
McCombes, Shona, (2019) Descriptive Research: Definition, Types,
Methods, and Example. Retrieved from: Descriptive Research |
Definition, Types, Methods & Examples
(scribbr.com)

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McCombes, Shona. (2019). Descriptive Research: Definition, Types, Methods,

and Retrieved from:

https://www.scribbr.com/methodology/descriptive- research/

Merriam Webster Dictionary

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Merriam Webster Dictionary

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Merriam Webster Dictionary

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http://tinyurl.com/3t836h4e

44
 APPENDICES

APPENDIX A: LETTER FOR THE PRINCIPAL

45
APPENDIX B: LETTER FOR THE RESPONDENTS

46
APPENDIX C: LETTER FOR BUSINESS PERMIT ANS LICENSING

OFFICE

47
APPENDIX D: VALIDATION RUBIC

48
APPENDIX E: MATRIX OF REVISION

49
 APPENDIX E: SURVEY QUESTIONNAIRE

THE LEVELS OF EFFECTIVENESS OF ONLINE PAYMENT ADOPTION ON

MICRO, SMALL, MEDIUM ENTERPRISES IN DARAGA, ALBAY

Dear participants,
We are students from Grade 12 ABM 3 from DARAGA NATIONAL HIGH
SCHOOL. This questionnaire is part of the requirements for Practical Research 2. The
questionnaire is intended to analyze the levels of effectiveness of online payment
adoption in Daraga, Albay. The questionnaire is intended for research purposes only.
We would be very grateful if you could devote a few minutes of your time to fill this
questionnaire. Thank you for your participation.

I. Direction: Encircle the letter that corresponds your answer.

1. How long have you been operating your business?
A. Less than a year
B. 1-3 years
C. 4-5 years
D. More than 6 years
2. How many are your employees?
A. 1-9 employees
B. 10-99 employees
C. 100-199 employees
3. What is the range of your business’ monthly income?
A. 5,000 pesos below
B. 5,001 pesos - 15,000 pesos
C. 15,000 pesos - 25,000 pesos
D. 25,001 pesos and above
4. What Online Payment app does your business use?
A. GCASH
B. PAYMAYA
C. BANK
D. Others (please specify) _________
5. How long has your business been using online payment methods?
A. Less than 1 year
B. 1-3 years

50
 C. 4-6 years
D. More than 6 years

II. Directions: Using the 5 point scale shown below, rate the following questions by
placing a check in the box. There are no right or wrong answers. Your answers will
be kept strictly confidential and you will not be identified.
A. Level of 5 4 3 2 1
Effectiveness Very High Average Low Very low
high
1. Accessibility

2. Time saving
3. Convenience
4. Security
5. User friendly

B. Impact on 5 4 3 2 1
Operational Very Satisfied Neither Dissatisfied Very
Efficiency ( satisfied satisfied or dissatisfied
Positive) dissatisfied
1. Easy
transaction
2. Improved
effectiveness
3. Boost
customer
satisfaction

Impact on
Operational
Efficiency (
Negative)
1. Hassle
2. Technical
issues
3. Limited

51
accessibility

Impact on
Financial
Performance
(Positive)
1. Improved
financial
management
2. Cost savings
3. Increased
sales and
revenue

Impact on
Financial
Performance
(Negative)
1. Transaction
fees
2. Customer
refunds &
returns
3. Expense
costs

C. Strategies 5 4 3 2 1
Strongly Agree Undecided Disagree Strongly
agree disagree
1. Educational
& training
2. Financial
boost
3. Enhanced
security
measures

52
4. Technical
support &
customer
service
5. Multiple
payment
options

53
APPENDIX F: DOCUMENTATIONS

54
55
56
57
58
59
60
61
62
63