From Cash to GCash: The Adoption of Digital Payment Systems and Its Perceived Benefits among Partner Merchants in Santo Tomas, Davao Del Norte

Abstract

A digital payment system can be defined as an electronic solution that allows conducting transactions without using cash and, as such, provides convenience, efficiency, and security in business activities. This paper found the strong association between the use of the digital payment system and the perceived benefits by the partner merchants in Santo Tomas, Davao del Norte. The study sample consisted of 130 GCash partner merchants, and the sample was chosen by using the universal sampling method. The research design adopted in this study was the descriptive-correlational research design based on quantitative, non-experimental research approach. The questionnaires included questions asked regarding the level of the digital payment systems adoption and perceived benefits which were measured using adapted and validated questionnaires. Mean and Pearson r were used as the statistical tools. Findings showed that the level of digital payment systems adoption was very high meaning that there were always high levels of adoption amongst the partner merchants in terms of relative advantage, complexity, compatibility, perceived risk, and customer innovativeness. Equally, the rate of perceived benefits was also reported to be very high indicating that benefits in the form of convenience, empowerment, personalization, discreetness, better deal, discretion, and assortment had been observed to be very high. Also, a strong, statistically significant relationship was found between the two variables (r = 0.844, p < 0.001). This suggests that higher levels of adoption are associated with greater perceived benefits among merchants. However, findings are interpreted within the limitations of correlational research. The survey had a conclusion that the implementation of the digital payment system, especially GCash, was crucial in the improvement of the operational effectiveness, accuracy of transactions and financial control among the partner merchants.