The Effect of Payment Transparency in Monetary Donations of Individuals using Mobile Wallets VS Cash

Date

7-2024

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Jefferson A. Arapoc

Committee Member

Ma. Nova R. Nguyen, Gideon P. Carnaje, Ma. Angeles O. Catelo

Request Access

For non-UP researchers, requests for access to this material may be directed to the CEM Library at cemlibrary.uplb@up.edu.ph or to the UKDR administrator at uscs-mainlib.uplb@up.edu.ph

Abstract

This study investigates the effect of payment transparency on charitable giving behavior. Payment transparency is the salience of a payment method in physical form and determinable amount compared to cash. While moral and social incentives also play a role in charitable giving, this study specifically focuses on the impact of payment method transparency on economic incentives. Literature on other payment methods such as credit cards and debit cards have suggested that transparency does have an influence on spending and charitable giving. Wherein less transparent payment methods lessen the perceived pain of losing money, which leads to greater donations. However, this study proposes to apply such logic onto mobile wallets (i.e., GCash) in the Philippine setting through a quasi- laboratory experiment. Participants played a captcha game to earn money and then were asked if they wanted to donate a portion of it to charity. Contrary to expectations, donations were not significantly higher when using the less transparent mobile wallet compared to cash. However, the study found a positive correlation between earnings and donation amounts, suggesting that individuals give more when they perceive themselves as having more money. Additionally, older participants donated more, while all donors exhibited a slight disinclination to donate their full earnings, suggesting a natural disincentive to donate.

Language

English

LC Subject

Electronic funds transfers

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2024 E2 O86

Notes

Viewing access to electronic resources is restricted solely to UP Gmail accounts. Any access and share requests from external organizations and personal email accounts will be promptly declined.

Document Type

Thesis

Link to Full Text

Share

COinS