The Economics of Digital Payment Adoption of Public Market Vendors in Los Baños, Laguna, 2024

Date

6-2024

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jaymee A. Cabangbang

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

Abstract

This study was conducted to analyze the economics of digital payment adoption of the public market vendors in Los Baños, Laguna. Specifically, it aimed to: identify the public market vendors’ preference in terms of payment method for use in their business and whether the preference of public market vendors aligned with the preference of the consumers; determine the factors associated with the digital payment adoption of public market vendors; assess the capability of market vendors to adopt digital payment including the availability of equipment and other requirements for digital transaction (e.g. smartphone, WIFI connection, etc.); evaluate the effect of digital payment adoption to the economic performance of public market vendors’ stalls; analyze the cost-efficiency of digital payment adoption; and recommend better payment methods for market vendors that can maximize the economic benefits.

Both primary and secondary were used in this study. A total of 113 public market vendors and 30 public market consumers were interviewed. To support the objectives of the study, the analytical tools used were descriptive analysis, chi-square test of independence, adoption capacity level and knowledge level analysis, 5-point Likert scale, heat map, spearman’s rank correlation, partial budget, and cost efficiency analysis.

The result of spearman’s rank correlation shows that the preference of public market vendors and consumers of chicken in terms of perceived usefulness is significant while in terms of perceived ease of use, preference of rice and vegetable vendors and consumers were significant. Moreover, preference of adopters and non-adopters public market vendors show a significant relationship in terms of perceived usefulness. Meanwhile, more than 80 percent of public market vendors and consumers preferred cash as a payment method and less than 20 percent preferred both cash and digital payment, specifically GCash. The chi-square test of independence indicated that socio-economic profile particularly age, stall classification, and monthly income had significant relationship in the adoption decision. Furthermore, there was a significant relationship between adoption capacity level and knowledge level as well as between the actual adoption and capacity and knowledge level of public market vendors. Partial budget analysis result implied a positive gain of PhP 9,176.70 on the monthly income when adopting digital payment. With that, adoption of digital payment is cost-efficient where at every one-peso cost, they could gain PhP 27.07. Despite that, only 34 public market vendors adopted digital payment and non-adopters have constraints in adoption. The top three adoption constraints of public market vendors were the fear of scam/hacking possibility, lack of knowledge, and not technology aware.

Based on the result, it was recommended to enhance and develop digital platforms in a way that was designed for all ages and increased its security. Moreover, the government was recommended to implement extensive intervention towards a cashless society through the enhancement of public market access to digitalization particular to the prominent adoption materials that they need.

Language

English

LC Subject

Markets, Electronic funds transfers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 A14 C36

Notes

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Document Type

Thesis

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