Factors Affecting the Likelihood of Adopting Mobile Money by Microentrepreneurs: A Case of Grameen Pilipinas Microfinance Inc.

Date

6-2025

Degree

Bachelor of Science in Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Maria Luisa G. Valera

Committee Member

Divine Krizza P. Cruz, Gideon P. Carnaje, Ma. Angeles O. Catelo

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Abstract

Mobile money adoption has become increasingly relevant in the Philippines, yet its usagefor business purposes among microentrepreneurs remains uneven. This study investigates how mobile money, particularly GCash, is used across business types, identifies key barriers to adoption, and examines the factors that influence the likelihood of adoption among microentrepreneurs affiliated with Grameen Pilipinas Microfinance Inc. Using data from a survey of 150 microentrepreneurs, the study employed descriptive statistics and a probit regression model to analyze the factors affecting the likelihood of adopting mobile money. Results show that mobile money is primarily used in retail businesses, especially for receiving customer payments and paying utility bills. Non-retail businesses, in contrast, continue to rely more on traditional cash-based methods, suggesting differing operational demands and digital readiness across business types. Barriers to adoption were also determined. The most commonly reported constraint was the lack of trust in mobile platforms, followed by high transaction fees, insufficient agent float, poor connectivity, and limited agent availability. These structural and trust-based concerns were key impediments to broader adoption. The marginal effects from the probit regression showed that capital and years of business experience significantly influence adoption. Microentrepreneurs with higher capital were more likely to adopt, while those with longer experience were less likely possibly due to habitual reliance on traditional practices. These findings highlight the roles of both operational context and structural barriers in shaping mobile money adoption.

Language

English

LC Subject

Entrepreneurship—Philippines, Digital currency—Economic aspects, Microfinance

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 E2 R34

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Document Type

Thesis

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