Volume 9, Issue 11, November – 2024 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Likelihood Success of Mobile Wallets in

Tuguegarao City
1
Cherry Anne N. Gumabay; 2 Maria Visitacion N. Gumabay
1
School of Business Accountancy and Hospitality Management, St. Paul University Philippines Tuguegarao City, Philippines
2
School of Information Technology and Engineering, St. Paul University Philippines Tuguegarao City, Philippines

Abstract:- In the Philippines, the payment of bills, According to CFI Team (November 2022) a mobile
essentials, deliveries, utilities, hospital bills, and tuition fees wallet is a type of virtual wallet that stores credit card
are done through mobile wallets. Gcash and Maya are the numbers, debit card numbers, and loyalty card numbers. It is
commonly used mobile wallets in the Philippines. The accessible through an app installed on a mobile device, such as
researcher made use of the descriptive research design. a smartphone or tablet. Customers use mobile wallets to make
This study is conducted to determine the likelihood success in-store payments, and it is a convenient payment method
of the use of mobile wallet in Tuguegarao City. Results compared to paying with cash or carrying physical credit
showed that majority of business owners, consumers, cards. Mobile wallets are accepted as a method of payment in
students, professionals, and other users drastically adapted stores that are listed with mobile service providers.
mobile wallet for business transactions because of the
convenient services that they provide. Also, government Mobile-payment wallets have become a vital part of the
and private agencies, universities, hospitals, entrepreneurs Southeast Asian consumer landscape, allowing financial
utilized Gcash and Maya to better improve their services access for millions of previously excluded people. As online
for the convenience of their customers. Electric and water spending soared during the COVID-19 pandemic, wallets saw
bills in Tuguegarao are paid through mobile wallet. The a surge in newly registered users. Uptake of this convenient
Overseas Filipino Workers (OFW) Remittances are technology now far outpaces that of credit cards in the
likewise also sent through mobile wallet. Hence, with the region’s emerging markets, thereby revitalizing the pay.
number of users of mobile wallet payments the business McKinsey and Company (May 2022)
owners as well as government agencies can benefit from
the convenient payment services of the mobile wallets for In the study of Sharma, G., & Kulshreshtha, K. (2019)
cashless transactions. m-wallets are used for executing various financial
transactions. In the emerging economies, m-wallets provide a
Keywords:- Mobile Wallet, Cashless Payments, Digital platform to target a large population. In India, m-wallet
Payments. services are growing because of its various advantages.
However, the consumers' liking, disliking and preferences
I. INTRODUCTION keep changing with the passage of time. Factors such as
convenience, safety, complexity, trialability, compatibility,
The coronavirus pandemic outbreak that causes service quality, privacy, availability of information and ease of
lockdowns and work from home have constantly shifted the use were identified.
way people spend and payment of file. Digitization has
brought an extraordinary development in the aftermath of the In the article of First State Community Bank (July 2019)
pandemic. One of the sectors that became popular is the digital digital and mobile wallet usage is on the rise, even
payments. The e-wallets have transformed the world of among consumer groups that are traditionally slower to adopt
payments. The mobile phone has become an imperative device new technologies. According to The Global Payments Report
in which the way people consume digital services has been for Financial Institutions and Merchants, digital wallets made
shaped using mobile phones. There is also a vast demand for up more than 48 percent of global e-commerce transaction
money transfer app as more people need to send money value in 2021 and are projected to reach 52.5 percent of
anywhere, anytime, and everywhere. The two world’s leading transaction value in 2025.
payment application platforms is WeChat and Alipay wherein
it is most likely to expand into other markets.

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Volume 9, Issue 11, November – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

In the article posted at Starista.com, the coronavirus accepting digital money transfers or payments. Its app
pandemic prompted a noticeable shift to digital payments in marketplace GLife also has over 420 merchant partners.
the Philippines. With reduced in-store shopping, Filipino
consumers have turned to mobile wallets and QR payments to At present, Gcash and Maya were the most used mobile
complete their shopping transactions. In fact, the Philippines or digital wallets which was already available in 2004 but
made one of the highest digital payment transactions in most of the Filipinos did not utilize because they find the
Southeast Asia in 2022, next to Indonesia and Thailand. traditional payments more effective and efficient. They also
Remittances from overseas Filipino workers (OFWs) also find mobile wallets registration is time consuming and it
contributed to this as online remittance services allowed requires personal information such as mobile phone, valid ID,
transfers straight to a recipient’s mobile wallet, aside from email address to be able to have an account. Eventually,
cash pickup locations. Filipinos embraced the use of technology through mobile
wallet during pandemic and post pandemic for its features and
In the Philippines Gcash is the first mobile wallet which services offered. The quick swift of this mode of payment is
was launched in 2004 powered by Globe Telecommunications. accepted Nationwide and Tuguegarao City included, thus
In the article posted at ww.globe.com.ph, GCash now has over groceries, food deliveries, shops, utilities, schools, and other
60 million registered users nationwide, marking a milestone related services adapted the said innovation. This study was
with a majority of the country’s adult population using the conducted to determine the likelihood success of mobile wallet
popular e-wallet service. At the same time, GCash now boasts in Tuguegarao City.
of more than five million merchants and social sellers
A. Paradigm of the Study

Fig 1. Paradigm of the Study

The research paradigm illustrates the direction of the  The Input.

study. In this study, the researcher utilizes the Input-Process- The input of the study contains the problems and
Output paradigm. challenges encountered by the participants using the mobile
wallets.
As shown in Figure 1, the Input-Process-Output
framework illustrates a schematic presentation of the inputs  The Process.
(i.e., data and/or requirements) that will be analyzed, The process of conducting this study consists of two (2)
processed, and used in the results of the study. phases. The first phase involves the analysis of the problems
and challenges encountered by participants in using mobile

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Volume 9, Issue 11, November – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

wallets. The second phase will involve the assessment of the  Tuition fee
of the utilization of mobile wallets by the participants.  Hospital bill

 The Output.  What do the participants recommend to improve the

The output of the study is to the determine the likelihood services and features of mobile wallet app?
success of mobile wallets in Tuguegarao City.
II. METHODOLOGY
B. Statement of Problem
The study aimed to determine the likelihood of success A. Research Design
of Mobile Wallets in Tuguegarao City. This study employed a mix method using qualitative
approach using descriptive research design to gather necessary
Specifically, the study will seek to answer the following: information to ascertain the likelihood success of mobile
 What are the problems and challenges encountered by the wallet in Tuguegarao City. The researcher used descriptive
participants using the mobile wallets methods to collect information about the participants, the
extent of utilization of mobile wallets, and problems and
 To what extent did the participants utilize the Mobile challenges encountered by the participants in using mobile
Wallets with respect to: wallets.
 Food Purchase
 Online Shopping B. Participants of the Study
 Utility bill Participants of the study are students, professionals,
 Telephone bill entrepreneurs, and other users of the mobile wallets, the
 Credit Cards bill participants random sampling was used to determine the
 Government agencies that requires payment services number of participants.

Table 1: Participants of the study

Percentage
Participant No.

Students 18 36%
Professionals 14 28%
Entrepreneurs/Business Owners 10 20%
Other Users 8 16%
TOTAL 50 100%

C. Instrumentation  The initial conduct of this study was initiated through a

To ensure that the data required in the conduct of the letter of permission to the participants of the study to seek
study correct, sufficient, and appropriate, researchers used the their approval to participate in this research.
following:  After obtaining the approval, the researcher scheduled an
individual interview using any available technology
The interview guide was used in collecting the data  The gathering of data and information relative to this study
required on the problems and challenges encountered by the from the different participants was done through an
participants in using mobile payment. informed consent form. The form includes the purpose of
the research, and possible risk benefits, as well as
In addition, the researcher used a questionnaire through confidentiality of their responses for participating in this
google forms to gather relevant data of the mobile wallet research work.
utilization.  The researcher prepared guide questions for use during the
interview, and asked probing questions related to
D. Data Collection and Analysis likelihood success of mobile wallets in Tuguegarao City.
 Data Gathering Procedure  Data Analysis
To achieve the objectives of this study, the researcher The data analysis would provide for proper data
went through the following series of steps: treatment to minimize bias in the research findings and
conclusions. The researcher extracted data using data analysis
tools.

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Volume 9, Issue 11, November – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

The different participants of this study who would  Thematic analysis. This was used by the researcher to
provide feedbacks were used to stimulate qualitative research closely examine the data from interview transcripts to
validity. The participants' feedbacks and the researchers' identify common topics, ideas, and patterns of meaning
interpretations and conclusions would provide useful that come up repeatedly.
verification, insights and challenges in this study.  Weighted mean. This was used to determine the utilization
of mobile wallets by the participants. The Likert scale
The following data analysis were used. below was used to describe the means obtained in this
 Data would be thematically analyzed where notes, themes study
and categories will be extracted.

Table 2. Likert Scale to Determine the Utilization of Mobile Wallets

Scale Mean Range Descriptive Interpretation
4 3.25 – 4.0 Always
3 2.50 – 3.24 Sometimes
2 1.75 – 2.49 Rarely
1 1.00 – 1.74 Never

III. RESULTS  Sync Mobile Banking

GCash and Maya require debit cards sync in the app to
A. Problems and Challenges Encountered by the Participants ensure fast cash in and convenience as well the the users will
using the Mobile Wallets enjoy the other payments categories available, the concern of
Through the interviews conducted, the researcher the participants is “ Paano po kung mahack nila ang personal
identified the problems and challenges encountered by the account ko di wala na po maiiwan sa banko ko po.”
participants as follows:
 Real Time Posting of Payments
 Internet Connectivity The purpose of accessing a mobile wallet is for your
According to the participants Internet Connectivity is the convenience and for the interest of time, however the
common problem of the participants because the mobile wallet participants encountered non-real time posting of payment.
is dependent on internet connection. “Di ko naman po “Gaya po nung nagbayad po ako ng electric bill namin
magagamit ang GCash kapag wala pong internet connection o successful naman sa notification pero nung dumating ang
data.” They can not make transactions on the available sunod na billing may outstanding balance pa rin po sya.” The
services of GCash or Maya if they do not have internet mobile wallets here the Philippines are powered by Instapay
access.The participants are sometimes hesitant to use the and PesoNet a third-party service, if said parties were not able
mobile wallets because all information like email address, a to post real time the payments as well as the wire transfers, the
scan of valid ID as well as photo is required to activate your mobile wallets do not normally inform the users. The user
account, not all can provide the required information to be needs to validate and coordinate with the third-party if the
able to create an account. “Di po ako maalam sa computer transactions were posted or not, hence, refund will be
kaya di ko po alam mga hinahanap bago ako magkaroon processed.
pinapagawa ko na lang po sa mga anak ko.”
 Impulsive Online Shopper
 Data Protection Online shopping has been a trend now specially on the
The data protection is one of the biggest risk particularly tip of your fingers you can do shopping. “Nagiging habit na
among mobile networks though this is regulated by the Act tuloy ang kakashoping online dahil mabilis at mas madali
10173 or the Data Privacy Act of 2012 (DPA) but there are mamili.” Thus, all of the participants become an impulsive
still hackers who are clever in getting payment information on buyer.
transmission of payment because mobile wallets are in the
form of encryption. “ Ang problema po kung mawala po ang
cellphone ko, anduon po ang GCash ko po kahit my one time
pin po pagmagaling po ang maghack makukuha po lahat ng
information ko. This is the common problem the participants
shared.

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Volume 9, Issue 11, November – 2024 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165

B. Extent of Utilization of Mobile Wallet

Table 3: Utilization Results of Mobile Wallet

Utilization Mean Descriptive Interpretation
Food Purchase 3.92 Always
Online Shopping 3.82 Always
Utilities bill 3.54 Always
Telephone bill 3.26 Always
Credit Cards bill 2.26 Rarely
Government agencies that require payment services 2.76 Sometimes
Tuition fee 2.50 Sometimes
Hospital bill 1.74 Never
Overall Mean 2.98 Sometimes

The assessment summary on the utilization of mobile REFERENCES

wallets is presented in Table 3.
[1]. Gupta, R. K. (2022). Adoption of mobile wallet services:
As seen on the table, the results show that food purchase, an empirical analysis. International Journal of
online shopping, utilities bill, telephone bills which are all Intellectual Property Management, 12(3), 341-353.
characterized as “always” have a means ranging from 3.26 to [2]. Sharma, G., & Kulshreshtha, K. (2019). Mobile Wallet
3.92. Of the four (4) areas of utilization, food purchase has Adoption in India: An Analysis. IUP Journal of Bank
the highest category mean of 3.92. Government agencies that Management, 18(1).
require payment services has a category mean of 2.76 and [3]. Retrieved from https://usa.kaspersky.com/resource-
Tuition fee has a category mean of 2.50 which is both center/threats/is-your-ewallet-safe , November 20,2022
descriptively interpreted as “sometimes”, while credit card bill [4]. Retrieved from
payment has a category mean of 2.26 which is descriptively https://corporatefinanceinstitute.com/resources/valuation/
interpreted as “rarely”. Whereas hospital bill with a category mobile-wallet/, November 25, 2022
means of 1.74 with a descriptive interpretation of “never”. The [5]. Retrieved from
overall mean of 2.98 is generally regarded as “sometimes”. https://www.netsolutions.com/insights/essential-features-for-
This implies that the utilization of the mobile wallet is likely building-popular-mobile-wallet-app/, November 30, 2022
successful in Tuguegarao City. [6]. Retrieved from
.(https://www.statista.com/topics/9799/digital-payments-
C. The Following Recommendations Made by the in-the-philippines/#topicHeader__wrapper), December
Participants: 02, 2022
 Other establishments such hospitals, universities,
restaurants, and bookstores should consider mobile wallets
for payment of bills.
 Mobiles wallets should also be available in wearable
devices and appliances that are internet ready.
 Mobile wallets may consider syncing with credit cards.
 Mobile wallets developers may also consider users with
special needs to keep track with updates and development
of technology on cashless transactions.

IV. CONCLUSION

Based on the results of this study, the following

conclusions were drawn.

The result of the study show that the utilization of mobile

wallet is likely successful in Tuguegarao City. Moreover,
business establishment slowly adapts the implementation of
cashless transactions.

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