THE IMPACT OF USING CASHLESS PAYMENT WITH THE OPERATIONS OF

MICRO BUSINESSES IN PACITA COMPLEX SAN PEDRO LAGUNA

A Research Paper Presented to

The faculty of Senior High School Department
Colegio de San Pedro, Inc.
San Pedro, Laguna

In partial Fulfillment of the Requirements for the Practical Research 2 and

Research Project Subjects of Accountancy, Business and Management

By:

Casuga, Whesley Rozz

Comia, Aaron
Coronado, Krisha Mae
Cribe, Marivic D.
Dujeñas, Kate Ashley
Ocbina, Jaicel
Mariñas, Jirlie Anne
Pialago, Jessa May
 ACKNOWLEDGEMENT

In the accomplishment of this project successfully the researchers deeply express

their appreciation to many people who have bestowed upon me their blessings and
the heart pledged support, this time the researcher utilizing to thank all the people
who have been concerned with this project.

Primarily the researchers would like to profoundly express their gratitude to Mr.
Jomar G Vigonia, CPA their adviser, for his valuable beyond estimation guidance
and for his constructive criticism in the entire project and for his patience and deep
concern in the fulfillment of the study.

Then the researchers would like to thank their parents and friends who have helped
with their valuable suggestions and guidance has been very helpful in various
phases of the completion of the project.

We would also like to give special thanks to the business owners for accommodating
the researchers and providing the total population of this project and making it full
proof success. They served as the major contribution towards the completion of the
project.
 ABSTRACT

This research studies the Impact of Cashless Payment with the operations of SMEs
in Pacita Complex, San Pedro, Laguna. This study was conducted with a sample of
business owners as the respondents who were surveyed if Cashless Payments had
a significant impact in their business in terms of Revenue, Cash Management, and
Cash Security. Additionally, the use of cashless payments / e-wallets was found to
have significant purpose in some other businesses, in terms of revenue due to the
results that the majority of some business owners shows that cashless payment
had increased their revenue, and also cash management that the majority of
respondents shows that business owners would not have a problem on
permanently implementing e-wallets / cashless payments as their payment option.
Furthermore, the study found that in terms of Cash Security it states that cashless
payments is not a better option to keep their revenue in an e-wallet application and
cashless payments is not safe for cash frauds and scams.
 TABLE OF CONTENTS

Page

TITLE PAGE i

ACKNOWLEDGEMENT ii

ABSTRACT iii

TABLE OF CONTENTS iv

CHAPTER 1: The Problem and Its Setting

Introduction 1

Statement of the problem 2

Hypothesis 2

Theoretical Framework 3

Conceptual Framework 6

Assumptions of the Study 7

Significance of the Study 7

Scope and Delimitations of the Study 8

Definition of Terms 8

CHAPTER 2: Review of Related Literature and

Studies

3 Local Literature 9

2 Foreign Literature 10

CHAPTER 3: Research Methodology

Research Design 12
 Target Population 12

Description of the Respondents 12

Sampling Method 13

Sampling

Sampling Technique 13

Sample Size 13

Measuring Instrument 14

Questionnaire Design 14

Ethical Considerations 15

Data Collection 15

Data Analysis 16

Hypothesis Test 17

CHAPTER 4: Presentation, Analysis, and

Interpretation of Data

Analysis of the Section 18

CHAPTER 3: Research Methodology

Summary 26

Findings 27

Personal Profile 27

Assessment on Revenue 28

Assessment on Cash Management 28

Assessment on Cash Security 28

Conclusions

Personal Profile 29

Assessment on Revenue 30

Assessment on Cash Management 30

Assessment on Cash Security 30

Recommendations 30

Bibliographies 31

Appendix 1 32

Curriculum Vitae 35

Hypothesis Test 49

Recommendations 49
 Chapter 1

THE PROBLEM AND ITS SETTING

Introduction

In the rapidly evolving digital era, traditional methods of conducting business

are being challenged and transformed. One significant change is the shift from
cash-based transactions to cashless payments. This transformation is not only
affecting large corporations but also Small and Medium Enterprises (SMEs) and
micro business, which form the backbone of many local economies, including that
of Pacita Complex, San Pedro, Laguna.

The adaption of cashless payments offers several potential benefits for Micro
Business, including improved operational efficiency, increased sales, and enhanced
customer satisfaction. However, the transition also presents its own set of
challenges, such as the need for technological infrastructure, security concerns,
and changes in business processes.

The impact of using cashless payments on the operations of Micro Business in

Pacita Complex, San Pedro, Laguna. By examining the level of adaption, benefits,
challenges, and the relationship with customer satisfaction, this study seeks to
provide valuable insights and recommendations that can help micro business in the
region effectively integrate cashless payments into their operations.

As our society continues to move towards digitalization, understanding these

impacts is crucial for the survival and growth of Micro Business. This study,
therefore, serves as a timely and necessary investigation into a trend that is likely to
shape the future of business operations in Pacita Complex, San Pedro, Laguna,
and beyond.
Statement of the Problem

This study was conducted to determine the Impact of using Cashless Payment with
the operation of SMEs in Pacita Complex, San Pedro, Laguna:

1. What are the profiles of the respondents as per the following variables:

1.1 Type of Business

1.2 Revenue
1.3 Frequently used e-wallets for Online Payments (e.g. Gcash, May, etc.)
1.4 Years in Operation
1.5 Type of Business Ownership

2. Assessment of The Impact of Cashless Payment with the operations of micro

business in Pacita Complex, San Pedro, Laguna in terms of:

1.1 Revenue
1.2 Cash Security
1.3 Cash Management

3. Is there a significant difference in the assessment of the respondents on the

Impact of Cashless Payment with the operations of Micro Business when they
are grouped according to profile?

Hypothesis

Negative Hypothesis: There is a significant relationship between the impact

of cashless payments and operations of micro business.

Wherein the Independent variable (impact of cashless payments) is related

to the Dependent variable (operations of micro business); Impact of cashless
payments has a significant effect towards the operations of micro business.
Theoretical Framework

Cashless payment methods have been on the rise for years, with a rapidly
growing use of this method by consumers and businesses who've been opting
digital transactions over traditional cash payments. This transition of cashless
payment has a significant implication for Micro Businesses, as they explore the
changes of financial transactions.

This study is primarily anchored on the Technology Acceptance Theory, or

TAM Theory, by Fred Davis (1986). This theory explains that the adaptation of
technology is influenced by perceived usefulness and ease of use. SMEs may
perceive these payment methods as useful for enhancing revenue by providing
customers with convenient payment options, potentially increasing sales.
Furthermore, cashless payment systems’ user-friendliness can expedite cash
management procedures, reducing the need for manual cash handling and
increasing overall effectiveness.

For SMEs, however, the security surrounding cashless payments is critical because
they must guarantee that transactions are safe against fraud and online scams. In
order to forecast their adoption and evaluate their effects on revenue, cash
management, and cash security, it is crucial to comprehend how SMEs view the
benefits, simplicity of use, and security of cashless payments.

In conclusion, the adoption of cashless payment methods has a significant impact

not only on the operations of SMEs but also for the consumers who can’t support
the cashless payment method. Considering the theories stated below can help
improve the implications of online payment and can meet the evolving needs of the
consumers in a digital economy.
Revenue

"Revenue Theory of Cost," also known as Bowen's Law or Bowen's Rule.

This economic theory, formulated by American economist Howard R. Bowen,
explains the financial trends of American universities.

The theory posits that costs at universities are primarily a function of revenue;
universities raise as much money as possible and then spend nearly all of it to
enhance prestige and the quality of education. The theory suggests that if
universities increase their revenue streams, costs will also rise, creating a
revenue-to-cost spiral.

The Revenue Theory of Cost underscores the importance of revenue

management in influencing financial decisions and resource allocation strategies of
universities. By focusing on revenue generation, institutions can bolster their
financial resources but must also be mindful of the associated increase in costs to
maintain and elevate their competitive position in the academic landscape. This
theory highlights the intricate interplay between revenue generation, cost
management, and the pursuit of excellence in higher education institutions.

Cash Management

Transaction Cost Theory or the TCE (Williamson 1979, 1986) outlines

the study that when a consumer decides between several payment systems, TCE
recommends that businesses try to minimize transaction costs. Cashless payments
may reduce transaction costs associated with cash, such as cash on hand, cash
storage, and transporting of cash.

This theory explains that some consumers might experience having an option to
choose between storing cash on online systems or rather having cash on hand or
ready to go payments, while some consumers prefer to have a choice of using
cashless transactions (e.g. using credit cards or in-app payments) in every
purchase.
By using cashless payments, SMEs may be able to reduce costs and increase cash
management efficiency. Furthermore, TCE recommends that businesses examine
the frequency and uncertainty of transactions when deciding on payment options.
As by opting cashless payments with having fast, convenient, and more reliable
transaction processes, may be preferable over cash in many cases. Furthermore,
TCE highlights the relevance of asset specificity, or the extent to which assets are
customized for certain functions.

Cash Security

One significant theory related to cash is the "Quantity Theory of

Money." This economic theory posits that there is a direct relationship between the
quantity of money in an economy and the price level of goods and services

According to this theory, an increase in the money supply (M) without a

corresponding increase in the quantity of goods and services (Q) will lead to
inflation, as more money chases the same amount of goods, driving prices up.
Conversely, a decrease in the money supply can lead to deflation.

The Quantity Theory of Money has been influential in shaping monetary policy
and understanding the relationship between the money supply, inflation, and
economic activity. It provides a framework for analyzing the impact of changes in
the money supply on the overall economy.
Conceptual Framework

INPUT PROCESS OUTPUT

1. Demographic Profile
of the Respondents:

1.1 Type of Business

1.2 Revenue Analyzing the To Identify the overall
1.3 Frequent usage of Demographic data impact of using
Online Payments gathered from the Cashless Payments with
1.4 Years in respondents using the operations of SMEs
Operation survey questionnaires
1.5 Type of Business Recommendations
Ownership

2. What is the
assessment of the
respondents as to the
impacts of using
Cashless Payments with
regards to the following
characteristics?

1.1 Revenue
1.2 Cash
Management
1.3 Cash Security

Figure 1: Research Paradigm

This study is focused on the Impact of using Cashless Payments with the
operations of Micro Business in San Pedro, Laguna.

For consideration of the input, this research facilitated the use of the
demographic profile of the respondents of each business which results in the
assessment of the respondents as to the Impacts of Cashless Payments regarding
the following characteristics of the input. To get the output, which shows the Impact
of using cashless payments with the operations of micro business. The process that
we used to gather answers was analyzing the respondent’s demographic data using
survey questionnaires.
Assumptions of the Study
The study presents these following assumptions:

1. This study suggests that Micro Business are open in terms of using cashless
payment options, these choices are influenced by factors like cost-efficiency,
convenience, and could improve their operational efficiency.

2. Our study also considers the challenges that Micro Business may face when
adopting cashless payments such as technological barriers, security concerns,
and regulatory compliance.

3. Moreover, the impact of using cashless payment methods on Micro Business

may vary based on factors like industry, size, and location. This highlights the
importance of understanding how micro businesses can use cashless payments
as an advantage on transactions.

4. The study sees the adaption of cashless payment methods as progress,

requiring continuous adaptation to market trends, and technology. This outlines
the needs for ongoing research and innovation to support the changing needs of
Micro Business

Significance of the Study

This study will benefit the following:

Micro Business Owners and Managers. This study can help owners
acquire valuable knowledge about the advantages of integrating cashless payment
methods, such as increased efficiency, cost reduction, and improved customer
satisfaction.

Customers. This study will let consumers or customers know the beneficial
factors of the implementation of cashless payment options and how they can offer
customers enhanced convenience, security, and flexibility when conducting
transactions with Micro Businesses.

The Future Researchers. This research on cashless payments and SMEs

contributes essential insights to the evolving landscape of the digitalization of
business, serving as a foundation for further study and analysis in this field.
Scope and Delimitations

The research aims to determine the impact of using cashless payment with
the operations of Micro Business in Pacita Complex, San Pedro, Laguna. The study
will collect data from (100) respondents who own or manage sari-sari stores in San
Pedro Laguna.

These respondents will be selected using a purposive sampling method to ensure

representation from various locations within the area. The respondents' experiences
and perspectives will provide valuable insights into the effects of using cashless
payment on the operations of sari-sari stores. The researchers focused on
determining the impact of cashless payment systems with the operations of Micro
Business in Pacita Complex, San Pedro, Laguna. The scope of the study includes
assessing its impact on sales, customer satisfaction, inventory management, and
financial transactions.

Definition of Terms

Cashless - A method of transaction where no physical money (cash) is exchanged.

It includes payments made through credit cards, debit cards, mobile wallets, and
electronic fund transfers.

Micro Business Entities - are businesses that maintain revenues, assets, or

several employees below a certain threshold.

Customers/Consumers - a person or a group who intends to order, or use

purchased goods, products, or services primarily for personal, social, family,
household, and similar needs.

Local Economies - are the economic activities and systems that occur within a
specific geographic area, such as a town, city, or region, involving the production,
consumption, and exchange of goods and services by businesses and individuals in
that area.

Adaption - the process of adjusting to new conditions, environment, or

circumstances to survive or thrive.
 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents the literature and studies after the thorough and in-depth
search done by the researchers.

LOCAL

Paul & Friday (2012) defined cashless transactions as an economic setting

wherein goods and services are transacted without using cash. This means that a
consumer can create a transaction without using actual money in exchange for
goods or services through cashless payment such as checks, credit and debit
card, e-cash, bitcoin, gift card, and checks among other methods. With the
opportunity to increase the consumer loyalty of the retail sector, the cashless 19-31
method was introduced in different supermarkets. For the past few years, different
companies such as telcos, banks, fintech startups, financial services, and
offline-to-online (O2O) firms have rolled out their e-wallets in the Philippines tailor fit
mostly for the country’s unbanked population of 72.9 million or 69 per cent of 105.7
million Filipinos. (Noda, 2018)

LOCAL

According to BSP data, more Filipinos were adopting e-wallet or e-payment

systems than credit cards in 2018. Platforms such as GCash and PayMaya are
options for Filipinos to do digital financial transactions without physical cash and
credit cards (Zoleta, 2021). Additional data also show that more Filipinos are
becoming aware of contactless payments and see such services' benefits. The Visa
Consumer Payment Attitudes study revealed that 80 percent of respondents were
aware of e-payment systems (Visa, 2019). However, despite the Filipino
consumers' awareness of the benefits of digital payment platforms, the actual
number of e-payment accounts dropped to 8.6 million from 11.4 million in 2018,
according to the BSP's Financial Inclusion Survey.
 LOCAL

Thomas (2010) describes card payments as “emotionally more inert than

cash” payment. When having a transaction using card-based payment in
supermarkets, customers are mandated to swipe their cards in a terminal; a device
used for swiping the card for the transaction. This process could affect the queuing
in the supermarket making the customers feeling satisfied or unsatisfied. Moreover,
the mode of payment does not only affect how much is spent but also the type of
purchase the customer buys. He also emphasized that credit card payment, one of
the cashless mode of payment, increases the incidence of unhealthy, unplanned,
and indulgent food purchases. However, (Bagchi & Block, 2011) argued that cash
payment increases the food purchase of the customers because impulsive buying
of food purchases provides an instant affective fix to the pain caused by parting with
cash.

FOREIGN

According to Armey (2014), using cashless payment has numerous

advantages. Unlike traditional cash transactions, cashless payments discourage
robbery and other cash-related crimes.” Due to the liquidity and transactional
anonymity of cash, consumers carrying cash are vulnerable to street crime.
Adopting cashless payments can even decrease robbery crime percentage in the
area, minimize the potential threat of robbery, kidnapping, monetary fraud, and
others. Gao (2000) also added that e-cash, one of the types of cashless
transactions, has several advantages such as reducing transaction process time,
process cost, and cash distribution costs among others. The elimination of
charges in the transaction can help not just the retail sector but also for the
convenience of the consumers. In addition, the cashless payment, particularly the
digital payments go well beyond convenience. The Digital payments or e – payment
improves consumer spending and economic development not just in the developed
countries but also for developing countries. (Aguirre, 2017).
 FOREIGN

Compatibility is among the factors that influence consumers in using the

service. Based on the results of the study of (Phonthanukitithaworn, Sellitto, &
Fong, 2016), shows that compatibility, subjective norms, perceived trust, and
perceived cost are the elements that influence current users' intents to use
m-payment (an e-payment service) systems. (Chen, 2008) expressed that
consumers think positively of mobile payment (an e payment service) when they
recognize that it is compatible with their lifestyle and social image. According to
(Okifo & Igbunu, 2015) technology has unquestionably made human life easier.
Additionally, (Tribhuvan, 2020) some consumers choose to make payments using
their mobile which has become more convenient, flexible, accessible, and pleasant.
Complexity sometimes emerges amidst the foreignness of technology-related
services and sometimes intimidates the consumers. However, (Acharya, Junare, &
Gadhavi, 2019), give emphasis that mobile phones and e-commerce are rapidly
growing, and consumers are showing an affinity for digital technology. Additionally,
(McCain, Lolli, Liu, & Lin, 2021) suggest that it offers consumers convenience
through providing flexible payment options and speedy transactions. Other factors
such as poor security, lack of trust, fear of failure, high charges, and inadequate
familiarity are among the issues that affect e-payment. Also (Barkhordari,
Nourollah, Mashayekhi, Mashayekhi, & MS., 2017) added that aside from safety,
internet banking facilities and privacy affects e-payment as well. According to the
Kaspersky lab analysis, the smart card payment system provides a three-factor
authentication security mechanism for the verification and authentication of a given
user. These are personal identification number (PIN), digital signature, and
fingerprint biometric. This mechanism increases the security level of this payment
system.
 CHAPTER 3

RESEARCH METHODOLOGY

This chapter presents the research methodologies used in this study. This
includes its research design, target population, description of the respondents,
sampling method, sampling, measuring instrument, questionnaire design, ethical
considerations, data collection, data analysis, and hypothesis test.

Research Design

This study is quantitative research, which involves the collection and analysis
of numerical data to understand the relationship between variables. The
researchers opted for a Quantitative research design, aiming to identify a clear
relationship between cashless payments and its impact to the businesses among
business owners in Pacita Complex, San Pedro, Laguna. This approach will allow
for a careful study of the extent to identify if cashless payments have a significant
impact in terms of the business’ revenue, cash management, and cash security.

Target Population

The target population for the survey in Pacita Complex, San Pedro, Laguna,
consists of 50 business owners operating in various industries, including but not
limited to retail, food and beverage, sari-sari stores, and services, who have been
using cashless payment transactions in their businesses for at least one year.

Description of the Respondents

The respondents of this study are business owners that own any type of
business, as long as they’re within Pacita Complex, San Pedro, Laguna. The
respondents must be conscious if using cashless payments has a significant impact
on their revenue, cash security, and cash management to answer the questionnaire
given to them accurately.
Sampling Method

The Simple Random Sampling was used in this study, where each member
of the population has an equal chance of being selected. The researchers instead
chose a random participant who holds desirable characteristics that fulfill the
requirements of the study’s target population.

Sampling

Sampling Technique

Stratified Sampling Technique was applied or chosen to select participants

for this study to allow the researchers to divide or choose a participant based on
their relevant demographics such as their revenue, frequent use of e-wallets, and
capitalization. This is a technique where participants are presented proportionally in
the sample providing a more accurate representation of the population and its
characteristics.

Sample

Sample Size

The sample size of this study was determined using the Slovin’s formula.
A total of 50 business owners were chosen to participate in the research.

Legend:
𝑁
𝑛= 2
n = Sample size
(1+𝑁𝑒 )
N = Population
e = margin of
error

134
𝑛= 2 → 𝑛 = 100. 375
1+134 ×0.05
 The sample of 100 over the population of 134 was used throughout the study

with the margin of error at 5% and the level of confidence at 90%.

Measuring Instrument

A comprehensive survey consisting of various questions will be distributed

among selected participants of business owners who use online payments in their
mode of payments. A variety of questions are included in the questionnaire,
including demographic information like type of business, estimated monthly
revenue, frequently used e-wallets, their years in the business industry, and their
capitalization. In addition, a series of statements related to using cashless
payments/e-wallets in their business that will be rated by the respondents using the
Likert-type scale. This will provide the researchers with important information about
the impact of cashless payments.

Questionnaire Design

Designing a questionnaire is crucial in conducting research, as it involves

creating valid, reliable questions, organizing them, and selecting the appropriate
administration method, among other components. The questionnaire is designed to
be easily understood to attract more participants in our study, as the questionnaire
helps the researchers identify the impact of using cashless payments on business
owners, affecting their revenue, cash management, and cash security. This is
divided into four sections:

Section 1

Respondents’ demographics – the respondents were asked to provide details

like their type of business, estimated monthly revenue, frequently used e-wallet
applications for online payments, years in the business industry, and their
capitalization with a five-point scale.
 Section 2

Evaluation of Cashless payment in terms of Revenue – with the use of Likert

scale, the respondents were asked on how cashless payments have a significant
impact on their business’ revenue.

Section 3

Evaluation of Cashless payment in terms of Cash Management – with the use

of Likert scale, the respondents were asked on how cashless payments have a
significant impact towards cash management.

Section 4

Evaluation of Cashless payment in terms of Cash security– with the use of

Likert scale, the respondents were asked to rate if cashless payments is a better
alternative in terms of cash security.

Ethical Considerations

All participants were informed about the purpose of the study and that their
answers will be kept private. They could choose to take part or withdraw from the
study at any time. The researchers followed rules for being fair and respectful.

Data Collection

Close-ended questionnaires are used to collect data on the respondents’

demographic profile, revenue, cash management, and cash security. This is given
by the researchers through printed copies. Printed copies were given by the
researchers personally to the respondents.
Data Analysis

The data collected from the survey questionnaire were classified and

tabulated for analysis and interpretation. This study made use of the following data

analysis and is prepared to facilitate analysis and proper interpretation.

1. Simple frequency tally and percentage distribution. These were used to

determine the demographic profile of the respondents depending on what

business they own in terms of its estimated monthly revenue, frequently used

e-wallet application for online payments, years in operation, and

capitalization.

2. Weighted arithmetic mean. This was used to determine if the study has a

significant impact on Micro Business. The impact of cashless payment was

measured using Likert Scale as follows:

Scale Verbal Information

4.30 - 5.00 Strongly Agree

3.50 - 4.20 Agree

2.70 - 3.40 Neither Agree or Disagree

1.90 - 2.60 Disagree

1.00 - 1.80 Strongly Disagree

Hypothesis Test

The Analysis of Variance (ANOVA) with repeated measures was used and
generated from test statistics.

ANOVA measures three or more groups where the participants are the same in
each group. ANOVA can be used in situations where; (1) when the participants are
measured multiple times to see changes or, (2) when participants are subjected on
more than one condition or trial and the response of each of the respondents wants
to be compared.

The ANOVA was used for decision-making in terms of accepting or rejecting the
null hypothesis by using the F-test results compared to the table value. If the
computed F-vale is greater or equal to the table value, reject the null hypothesis.
 Chapter 4

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents the analysis and interpretation of data regarding the
Impact of Cashless payment with the operations of Micro Business in San Pedro,
Laguna.

1. Demographic Profile

1.1 Personal Profile

Table 1

Frequency and Percentage Distribution of the Respondents

in Terms of Business Type

Type of Business F Percentage

Food and Beverages 30 30%

Sari-sari Store 56 56%

Retail 9 9%

Servies 5 5%

Table 1 presents the frequency and percentage distribution of the respondents in

terms of business type and shows the result of Sari-sari Store Business
representing 56% as to be chosen by respondents. Along with the 56% total result
that was second to be chosen by respondents representing Food and Beverages
Business. While Retail Business had 9% of data collected based on the data
collected from the respondents. Along with Services business with a result of 5%.
 Table 2

Frequency and Percentage Distribution of the Respondents

in Terms of Estimated Monthly Revenue

Estimated monthly F Percentage

revenue

Less than PHP 10,000 30 30%

PHP 10,000 - PHP 50,000 65 65%

More than 100,000 5 5%

Table 2 presents the frequency and percentage distribution of the respondents in

terms of monthly revenue, and it shows the result of a business owner having Less
than PHP 10,000 as their monthly revenue answered by 30 respondents that is
equivalent to 30%. While the 65% total result that was second to be chosen by
respondents answered that their estimated monthly revenue was PHP 10,000 -
PHP 50,000. Along with the final option on the table, it represents an estimated
monthly revenue with a total of 5 respondents equivalent to 5% of the respondents
stating that their estimated monthly revenue is More than 100,000.
 Table 3

Frequency and Percentage Distribution of the Respondents

in Terms of Frequently used e-wallet application for Online Payments

Frequently used e-wallet F Percentage

application for online
payments

Gcash 84 84%

Paymaya / Maya 6 6%

Seabank 4 4%

Shopeepay 3 3%

GoTyme 3 3%

Table 3 presents the frequency and percentage distribution of the respondents in

terms of frequently used e-wallet application for online payments. The first table
represents that Gcash is mostly used by business owners with a total of 84%. The
second table states that Paymaya/Maya is ranked second to be used by business
owners with a total of 6%. The third section of the table shows a total of 4% for the
businesses who use Seabank as their frequently used e-wallet application. Along
with the options, Shopeepay have a total of 3% along with the businesses who
used GoTyme have total of 5%
 Table 4

Frequency and Percentage Distribution of the Respondents

in Terms of Years in Business Industry

Years in Business F Percentage

Industry

Less than 1 Year 11 11%

1 - 3 Years 26 26%

4 - 6 Years 42 42%

7 - 10 Years 5 5%

More than 10 Years 16 16%

Table 4 presents the frequency and percentage distribution of the respondents in

terms of years in the business industry. The first row in the table states that
businesses that only had established or started for only Less than 1 year had a total
of 11% of answers from respondents. The second row from the table states that
businesses that had operated for 1 - 3 Years had a total answer of 26%. The third
row had 47% of total answers from respondents representing that their business
had been operating for 4 - 6 years. The fourth row represents the total collected
data of 5% shows that respondents’ businesses had been operating for 7 - 10
Years. Along with the last row in the table, the fifth row represents that 16% of
respondents’ businesses that have been operating for more than 10 Years.
 Table 5

Frequency and Percentage Distribution of the Respondents

in Terms of Capitalization

Capitalization F Percentage

Less than 10k 13 13%

10k - 50k 58 58%

50k - 100k 29 29%

Table 5 presents the frequency and percentage distribution of the respondents in

terms of Capitalization. It shows that in the first row 13% of the respondents
represent that their capital is Less than 10k. The second row represents a total of
58% of the respondents who answered that their capital is 10k - 50k. The third row
of the table shows that 29% answered that their capital is 50k - 100k,
IV. Assessment of the respondents on the Impact of Cashless payment with the
operations of Micro Business in San Pedro, Laguna.

Table 6

The Respondent’s Assessment on The Impact of Cashless payment with the

operations of Micro Business
in Pacita Complex, San Pedro, Laguna in terms of Revenue

1.1 Frequency Weighted Verbal

Mean Interpretation

1.1.1 Cashless payment methods have 4.61 Strongly Agree

increased my revenue generation and
opportunities for my business.

1.1.2 The use of cashless payments has 4.17 Agree

improved customer satisfaction in my
business.

1.1.3 Cashless payment practices earn 4.4 Agree

opportunities at online transactions such
as cash-in and cash-outs.

Table 6 presents the assessment of the impact of cashless payment with the
operations of SMEs in Pacita Complex, San Pedro, Laguna in terms of Revenue.
The first row in the table states that the business owners are Strongly Agree with a
GWM of “4.61.” The second-row states that business owners are Agree that
cashless payments have improved their customer satisfaction in their business with
a GWM of “4.17” Along with the last row in the table represents an answer that they
are Agree that cashless payment earns opportunities due to cash-in and cash with
a GWM of “4.4”
 Table 7

The Respondent’s Assessment on The Impact of Cashless payment with the

operations of Micro Business in Pacita Complex, San Pedro, Laguna in terms
of Cash Management

1.2 Frequency Weighted Verbal

Mean Interpretation

1.2.1 As a business owner, online payment 4.4 Agree

transactions are not complicated and can
be easily understood by
consumers/customers.

1.2.2 I often use online transactions in my 3.96 Agree

business and I see no problem if this will
be permanently added as a mode of
payment.

1.2.3 I'm overall confident in using known 4.9 Agree

e-wallets or cashless payments because
of the security measures they provide and
because they are commonly used by
customers.

Table 7 presents the assessment on the impact of cashless payment with the
operations of SMEs in Pacita Complex, San Pedro, Laguna in terms of Cash
Management. The first row in the table states that the respondents are Agree with a
GWM of “4.4” that when cashless payments were implemented, it can be easily
understood by consumers. The second row of the table shows that the GWM of
”3.96” means that they’re Agree that business owners have no problems with
cashless payments to be implemented permanently as their mode of payment. The
last row in the table shows that business owners are Agree with a GWM of “4.9”
that they are confident on using known e-wallets for cashless payments due to the
security measures that an e-wallet provides.
 Table 8

The Respondent’s Assessment on The Impact of Cashless payment with the

operations of Micro Business in Pacita Complex, San Pedro, Laguna in terms
of Cash Security

1.3 Frequency Weighted Verbal

Mean Interpretation

1.3.1 Cash kept in e-wallets are safe in terms of 2.57 Disagree

cash frauds or thefts.

1.3.2 Cashless payment transactions are 2.72 Neither Agree or

ensured to be encrypted and secure while Disagree
sending or receiving payments.

1.3.3 Cashless payments offer better protection 2.27 Disagree

against counterfeit currency compared to
traditional cash transactions.

Table 8 presents the assessment on the impact of cashless payment with the
operations of SMEs in Pacita Complex, San Pedro, Laguna in terms of Cash
Security. The first row in the table shows that business owners are Disagree with a
GWM of “2.57” that keeping cash in e-wallets is safer than physical cash. The
second row indicates that cashless payment transactions are more secure than
paying physical cash where respondents answered Disagree with a weighted mean
of “2.72” The last row in the table shows that cashless payment offers better
security protection against counterfeit currency compared to traditional cash, the
respondents answered Disagree with a weighted mean of “2.27”

III. Is there a significant difference in the assessment of the respondents on the

Impact of Cashless Payment with the operations of Micro Business when they are
grouped according to profile?

Table 9

Significant Difference on the Assessment of the Level of Online Shopping

Platform to the Physical Business

Profile F-value Table Decision Interpretation

Value

Type of 0.56 0.73 Accept Not Significant

Business

Estimated 0.39 1.92 Accept Not Significant

Monthly
Revenue

Frequently 0.50 0.98 Accept Not Significant

used e-wallet

Years in 0.41 1.41 Accept Not Significant

Business
Industry

Capitalization 0.28 2.22 Accept Not Significant

Let us recall that the decision rule for ANOVA is if the computed F-value is
greater than or equal to the table value, we must reject the hypothesis. Table 9
shows the significance difference on the assessment on The Impact of Cashless
Payment with the operations of Micro Business to the respondents when they are
grouped according to profile.

According to Type of Business with F-value of 0.56 and T-value of 0.73, the
decision is to accept the negative hypothesis.

According to Estimated Monthly Revenue with F-value of 0.39 and T-value of 1.92,
the decision is to accept the negative hypothesis.

According to Type of Business with F-value of 0.56 and T-value of 0.73, the
decision is to accept the negative hypothesis.
According to Frequently used e-wallet with F-value of 0.50 and T-value of 0.98, the
decision is to accept the negative hypothesis.

According to Years in Business Industry with F-value of 0.41 and T-value of 1.41,
the decision is to accept the negative hypothesis.

According to Capitalization with F-value of 0.28 and T-value of 2.22, the decision is
to accept the negative hypothesis.

The result of the survey shows, regardless of respondents and their company’s
profile, their assessment on the impact of cashless payment with the operations of
micro business will still be the same.
 CHAPTER 5

SUMMARY, CONCLUSIONS, AND RECOMMENDATION

This chapter represents the summary of findings, conclusions and

recommendations that is relevant to The Impact of Cashless Payment with the
operations of Micro Business in Pacita Complex, San Pedro, Laguna.

Summary

The researchers made use of a descriptive survey method along with a validate
structured questionnaire - which is an instrument used to gather necessary data
information. Simple Random Sampling was used to select participants in the study;
there were 100 participants who were chosen among the businesses in Pacita
Complex, San Pedro Laguna.

The Frequency counts and Percentage distribution were used along with the
weighted mean. In addition, Likert Scale was used to assess the Impact of
Cashless Payment in Pacita Complex, San Pedro, Laguna.

The problems used in the study were the following:

Section 1: Information based on the respondents and its business.

Section 2: Assessment on The Impact of Cashless Payment with the operations of

micro business in Pacita Complex, San Pedro, Laguna in terms of Revenue.

Section 3: Assessment on The Impact of Cashless Payment with the operations of

micro business in Pacita Complex, San Pedro, Laguna in terms of Cash
Management.

Section 4: Assessment on The Impact of Cashless Payment with the operations of

micro business in Pacita Complex, San Pedro, Laguna in terms of Cash Security.
Findings

The following are the findings of the researchers have discovered upon the
assessment of the data acquired from the survey questionnaires conducted from
the respondents:

Personal Profile

The researchers conclude that most types of businesses that are popular
around San Pedro, Laguna were Food & Beverages like karinderya and small
eateries on the streets (street foods) or food stalls, the total data collected from the
respondents’ answers was 36%. While having Sari-sari Store had a total data
collected 53% from the respondents resulting from having Sari-sari Store Business.

In terms of monthly revenue of their business, the highest percentage that the
researchers’ collected data from the respondents was 46% states that their
business had an estimated monthly revenue of Less than PHP 10,000. Meanwhile
collecting 4% of the data for having PHP 10,000 – PHP 50,000 of estimated
revenue. Following 7% of the collected data answered more than PHP 100,000.

Their third profile to be answered in the questionnaire was a frequently used

e-wallet application where in Gcash was mostly used by business owners with a
total of 60% of the data collected from the questionnaires. Second was
Shoppeepay with a total of 17%. Seabank was placed third as frequently used
e-wallet by business owners with a total of 3%, Along with GoTyme with a total
collected data of 5%

The researchers also included the years of operation/how many years the
business owner had been operating its business, the data shows that 11% of the
data stated that their business is only Less than 1 year. While 26% of the data
gathered from the respondents shows that their business has been over 1-3 years.
While 7-10 years represents 47% of the data gathered by the researchers. 16% of
the respondents represent that their business is more than 10 years.

Lastly the researchers concluded that in capitalization, less than 10k was
chosen by other business owners with a total of 13%. While most of the data states
that 56% states that their capital was 10k-50k, along with the 50k-100k capital with
a total of 29%.
Assessment of Revenue

The respondents’ assessment on the impact of cashless payment with the

operations of micro business in pacita complex, san pedro laguna in terms of
revenue shows that in terms of revenue generation and that cashless payments
adds more opportunities to businesses, the GWM was 3.83 states that it is under
“Agree” scale, while cashless payments improves customer satisfaction had a
general weighted mean of 3.14 states that it is under “Neither Agree or Disagree”
scale. While cashless payment earns opportunities at online transactions such as
cash-in and cash-outs had the general weighted mean of 3.7 under the scale of
“Neither Agree or Disagree” scale.

Assessment of Cash Management

The respondents’ assessment on the impact of cashless payment with the

operations of micro business in pacita complex, san pedro laguna in terms of Cash
Management shows that online transactions can be easily understood by
consumers, the GWM was 4.8 which means “Agree.” While in terms of permanently
implementing cashless payment as a mode of payment in their business shows that
the GWM was 4.1 means “Agree.” While cashless payment can be frequently used
by business owners because it provides better security that physical cash shows
that the GWM was 4.12 means that the result is “Agree.”

Assessment of Cash Security

The respondents’ assessment on the impact of cashless payment with the

operations of micro business in pacita complex, san pedro laguna in terms of Cash
Security shows that cash kept in e-wallets are safer, the GWM was 2.44 means that
the result is “Disagree.” Along with the statement that cashless payment is more
encrypted and ensured to be safer to send and receive cash online shows that the
GWM was 2.36 means that the result is “Disagree.” While cashless payments offer
more security for counterfeit money that physical cash interprets that the GWM was
2.17 means that the results are “Disagree.”
Conclusions

Based on the findings of the study, the following conclusions are made.

Personal Profile

The researchers conclude that most of the businesses choose a type of

business that involves food and sari-sari stores because having a food business is
more popular in San Pedro, Laguna. As for the results stated on the tables, this
type of business involves what consumers commonly engaged with, likely for
example service type of business-like phone repairs or salon only had a fewer date
to have a few customers.

As for the estimated monthly revenue of the respondents’ businesses most of

the data collected was that Less than PHP 10,000 was their estimated monthly
revenue, meanwhile others stated that it was more than PHP 10,000 – PHP 50,000
where in its possible to have monthly revenue for businesses who had been in the
business industry for a long time.

We also concluded on the data of the most frequently used e-wallets of the
business owners as their mode of payment, most answers which collected the data
was Gcash since this application was always used in terms of online shopping or
online purchases. Second was Paymaya / Maya e-wallet application where it's also
used like the Gcash application. While Seabank application was ranked third as the
most used e-wallet application on their business, as for the results of Shopeepay
and GoTyme was the least used by the business owners.

The results shown on the years of each business in the business industry
explains that how long they had an experience selling or how many years they had
been operating their business, the results stated that the majority of the
respondents said that they had their business for at least 4 – 6 years. While other
respondents answered 1 – 3 years with a total data collected of 26%, Less than a
year had a total of 11%, 7-10 years had 5% data collected, and for more than 10
years for a total of 16%.

The results were concluded where their capital for starting a business was less
than 10k for the data collected of 13%, as for the majority of most of the
respondents their starting capital when they started their business was 10k – 50k
for the total data collected of 58%. Some of the respondents answered 50k – 100k
for 29%.
Revenue

The researchers conclude that the assessment underscores the significant

positive impact of cashless payments on revenue generation, customer satisfaction,
and the creation of new growth opportunities for Micro Business in Pacita Complex.

Cash Management

The researchers conclude that the assessment indicates positive consumer

understanding of cashless payments, mixed views on the permanent adoption of
cashless methods, and a strong trust in the security measures of e-wallets among
Micro Business in Pacita Complex.

Cash Security

The researchers conclude that the assessment highlights a mixed perception

among Micro Business owners in Pacita Complex regarding the security aspects of
cashless payments. While some view e-wallets as safer than physical cash, there
are concerns about the security of cashless transactions and the protection against
counterfeit currency.

Recommendations

The respondents have varying opinions on the use of payment methods. Some
believe that cashless payments are preferable as they offer safety for money, can
be used for earning, and are convenient. On the other hand, others argue that using
cash on hand is also beneficial.
 BIBLIOGRAPHIES

Online Sources

Chelvarayan, A., Yeo, S. F., Yi, H. H., & Hashim, H. (2022, June 21). E-wallet: A
study on cashless transactions among university students. F1000Research.
https://f1000research.com/articles/11-687
Jain, V., & Jain, P. J. (2018, January 30). Oman’s banking sector approach to Fatca.
2017.
https://www.researchgate.net/publication/322790123_Oman’s_Banking_Sector_Ap
proach_to_FATCA_2017
Jain, V., & Jain, P. J. (2018, January 30). Oman’s banking sector approach to Fatca.
2017.
https://www.researchgate.net/publication/322790123_Oman’s_Banking_Sector_Ap
proach_to_FATCA_2017
Tee, H.-H., & Ong, H.-B. (2016, April 7). Cashless payment and economic growth -
financial innovation. SpringerOpen.
https://jfin-swufe.springeropen.com/articles/10.1186/s40854-016-0023-z
Thakor, A. V. (2019, February 27). Fintech and banking. SSRN.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3332550
 APPENDICES

APPENDIX 1

SURVEY QUESTIONNAIRE

PART I: DEMOGRAPHIC PROFILE

Direction: Kindly provide your appropriate answers to the following. (Please do

not leave any blank):

Type of Business:
☐ Food and Beverages (e.g. Karinderya, Food Stalls) ☐ Services
☐ Sari-sari Store
☐ Retail

Estimated monthly revenue:

☐ Less than PHP 10,000
☐ PHP 10,000 – PHP 50,000
☐ More than PHP 100,000

Frequently used e-wallet applications for Online Payments:

☐ Gcash ☐ Shopeepay
☐ Paymaya / Maya ☐ GoTyme
☐ Seabank

How many years have you been in the business industry?

☐ Less than 1 year ☐ 7-10 Years
☐ 1-3 Years ☐ More than 10 years
☐ 4-6 Years

Capitalization:
☐ Less than 10k
☐ 10k-50k
☐ 50k-100k
PART II: ASSESSMENT OF THE EFFECTS OF CASHLESS PAYMENT TO SMEs
ACCORDING TO THE FOLLOWING CRITERIA.

Directions: Please refer to the following scale as a frame of references and check
the appropriate column that corresponds to your rating.
5 - Strongly Agree 4 - Agree 3 - Neither Agree or Disagree 2 - Disagree 1 - Strongly Disagree
1. REVENUE 5 4 3 2 1

Cashless payment methods have

increased my revenue generation and
opportunities for my business.

The use of cashless payments has

improved customer satisfaction in my
business.

Cashless payment practices earn

opportunities at online transactions such
as cash-in and cash-outs.

PART III: OPPORTUNITIES ON USING CASHLESS PAYMENT

Directions: Please refer to the following scale as a frame of references and check
the appropriate column that corresponds to your rating.
5 - Strongly Agree 4 - Agree 3 - Neither Agree or Disagree 2 - Disagree 1 - Strongly Disagree
2. CASH MANAGEMENT 5 4 3 2 1

As a business owner, online payment

transactions are not complicated and
can be easily understood by
consumers/customers.

I often use online transactions in my

business and I see no problem if this will
be permanently added as a mode of
payment.

I'm overall confident in using known

e-wallets or cashless payments
because of the security measures they
provide and because they are
commonly used by customers.

PART IV: THE IMPACT OF USING CASHLESS PAYMENTS

 Directions: Please refer to the following scale as a frame of references and check
the appropriate column that corresponds to your rating.
5 - Always, 4 - Often, 3 - Sometimes, 2 - Rarely, 1 - Never
1. CASH SECURITY 5 4 3 2 1

Cash kept in e-wallets are safe in terms

of cash frauds or thefts.

Cashless payment transactions are

ensured to be encrypted and secure
while sending or receiving payments.

Cashless payments offer better

protection against counterfeit currency
compared to traditional cash
transactions.
 CURRICULUM VITAE

PERSONAL BACKGROUND

Name: Marivic D. Cribe

Date of Birth: October 4, 2006
Place of Birth: San Pedro, Laguna
Age: 17
Civil Status: Single
Home Address: 13 Tanguile St., Phase 2, Block 2, Lot 2A

EDUCATIONAL BACKGROUND

Level School Year

Elementary Pacita Complex 1, Elementary School 2011-2017

Secondary Pacita Complex National High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Whesley Rozz Casuga

Date of Birth: December 19, 2005
Place of Birth: San Pedro, Laguna
Age: 18
Civil Status: Single
Home Address: 13 Tanguile St., Phase 2, Block 2, Lot 2A

EDUCATIONAL BACKGROUND

Level School Year

Elementary San Vicente Elementary School 2011-2017

Secondary Pacita Complex National High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Aaron T. Comia

Date of Birth: February 24, 2005
Place of Birth: San Pedro, Laguna
Age: 19
Civil Status: Single
Home Address: Southville 3A, San Pedro, Laguna

EDUCATIONAL BACKGROUND

Level School Year

Elementary Southville 3a Elementary School 2012-2017

Secondary Sampaguita National High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Krisha Mae Coronado

Date of Birth: October 9, 2006
Place of Birth: San Pedro, Laguna
Age: 17
Civil Status: Single
Home Address: Blk 2 lot 30, Athens st, Villa Olympia 1

EDUCATIONAL BACKGROUND

Level School Year

Elementary Chrysanthemum Elementary School 2012-2017

Secondary Pacita Complex National High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Kate Ashley Dujeñas

Date of Birth: October 27, 2005
Place of Birth: Caluan, Laguna
Age: 18
Civil Status: Single
Home Address: Sitio Kingsfarm, San Antonio

EDUCATIONAL BACKGROUND

Level School Year

Elementary Southville 3a Elementary School 2012-2017

Secondary Sampaguita National High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Jessa May Pialago

Date of Birth: January 30, 2006
Place of Birth: Dumaguete
Age: 18
Civil Status: Single
Home Address: San Roque, San Pedro, Laguna

EDUCATIONAL BACKGROUND

Level School Year

Elementary Pio Makahig Memorial High School 2012-2017

Secondary San Pedro Relocation Center 2017-2022

National High School

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Jirlie Anne B. Mariñas

Date of Birth: September 26, 2006
Place of Birth: Muntinlupa
Age: 17
Civil Status: Single
Home Address: Blk 58, Lot 16, Camia St. Southfairway
Homes, Landayan

EDUCATIONAL BACKGROUND

Level School Year

Elementary Creative Star Monterssori Inc. 2012-2017

Secondary San Pedro Relocation National 2017-2022

High School

Tertiary Colegio De San Pedro (CDSP) Present

PERSONAL BACKGROUND

Name: Jaicel Hon C. Ocbina

Date of Birth: July 19, 2004
Place of Birth: Silang, Cavite
Age: 19
Civil Status: Single
Home Address: Afp Housing, Zone 1, Bulihan,
Silang, Cavite

EDUCATIONAL BACKGROUND

Level School Year

Elementary Bagong Buhay Elementary School 2012-2017

Secondary Casa Del Ñiño Science High School 2017-2022

Tertiary Colegio De San Pedro (CDSP) Present

Hypothesis Test

In the overall tests of hypothesis, The researchers firmly analyzed that there is
no significance between the impact of cashless payment with the operations of
micro business in terms of revenue, cash management, and cash security when
they are grouped according to type of business, estimated monthly revenue,
frequently used e-wallet application, years in business industry, and capitalization,
thereby indicating the acceptance of the hypothesis formulated in this study.

Recommendations

The following are the recommendations by the researchers to the impact of

cashless payment with the operation of micro business in Pacita Complex, San
Pedro, Laguna.

The respondents have varying opinions on the use of payment methods. Some
believe that cashless payments are preferable as they offer safety for money, can
be used for earning, and are convenient. On the other hand, others argue that using
cash on hand is also beneficial.