The Effects of Adopting Electronic Payment Systems on the Cash Usage of Individual: the Case of San Pablo City, Laguna

Date

6-2022

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Amelia L. Bello

Committee Member

Luisito C. Abueg Amelia L. Bello Ma. Angeles O. Catelo Agham C. Cuevas

Abstract

This study investigated the effects of adopting electronic payment systems on the cash usage of people in San Pablo City, Laguna. In recent years, there has been a significant increase in the use of e-money (e.g., GCash and PayMaya), debit cards, credit cards, and online banking. Despite this, statistics show that people remain dependent on cash. In this regard, Ordinary Least Square (OLS) regression was employed to verify whether the use of e-payments reduces a person's cash spending on his economic transactions or not. In addition to regression analysis, the researcher presented descriptive statistics to provide an initial discussion on the effects of the socio-demographic characteristics of individuals and the other determinants of cash usage.

It was found that the use of e-money, debit cards, credit cards, and online banking has no significant impact on cash usage. This result implies that users of e-payments still heavily rely on cash. Conversely, expenditure, transaction size, and frequency (i.e., once a month) are found to be positively related to cash usage. These findings suggest that an increase in the average consumption of a person could increase the usage of cash. Second, as the value of the transaction becomes higher, individuals will prefer to use cash over e- payments. Lastly, the less often an individual uses e-payments, the more he uses cash.

Language

English

LC Subject

Electronic payment systems, Cash usage, Multiple linear regression

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2022 E2 R36

Document Type

Thesis

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