Factors Influencing the Acceptance and Engagement in Cashless Transactions of Working Adults

Shanen Lei M.  Angcaya; Sim Bazaleel S.  Cimafranca; Lyka Mae P.  Geocadin; Paula Justine L. Olegario; Robert A.  Borromeo; Reynaldo P.  Abas Jr.; Evely G.  Lintao; Lualhati P. Sausa

Authors

Shanen Lei M. Angcaya Adventist University of the Philippines
Sim Bazaleel S. Cimafranca Adventist University of the Philippines
Lyka Mae P. Geocadin Adventist University of the Philippines
Paula Justine L. Olegario Adventist University of the Philippines
Robert A. Borromeo Adventist University of the Philippines
Reynaldo P. Abas Jr. Adventist University of the Philippines
Evely G. Lintao Adventist University of the Philippines
Lualhati P. Sausa Adventist University of Philippines

Keywords:

cashless transaction, working adults, acceptance, engagement

Abstract

Cashless transactions have evolved over time because of advancements in technology. With this, mobile payments have become increasingly popular. However, it has been noticed that some Filipino working adults have been slow in adopting cashless payment systems. This study aims to identify the underlying factors that influence the acceptance and engagement in cashless transactions of working adults. A quantitative research design was used, and the gathered data from (n=394) respondents underwent statistical analysis, using Pearson correlation, t-test, ANOVA, and regression analysis. The results revealed that all the variables have a significant relationship with acceptance and engagement in cashless transactions. However, only performance expectancy, social influence and lifestyle compatibility significantly predicts the acceptance and engagement in cashless transactions. Recommendations include using available cashless options, staying informed about digital trends, and implementing fraud prevention. Businesses should enhance cashless options, lower costs, and educate users, while digital platforms should advance technology and support financial literacy. Future research should investigate long-term effects and include diverse user experiences.

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Author Biographies

Robert A. Borromeo, Adventist University of the Philippines

Abdul Rais, N. A., Mohd Yusop, N., Sabtu, S. N., & Shamsul Bahrin, N. E. E. (2022). Cashless society in campus: student’s usage and level of awareness. Voice of Academia (VOA), 18(1), 58-66.

Adrian, M. (2018). Is the Philippines ready to go cashless? iMoney.Ph. https://www.imoney.ph/articles/cashless-payment-philippines/

Altin Gumussoy, C., Kaya, A., & Ozlu, E. (2017). Determinants of mobile banking use: An extended TAM with perceived risk, mobility access, compatibility, perceived self-efficacy and subjective norms. Lecture Notes in Management and Industrial Engineering, 225–238. https://doi.org/10.1007/978-3-319-71225-3_20

Babbie, E. (2015). The practice of social research - Standalone Book (14th ed.) [E-book]. Cengage Learning. https://lms.su.edu.pk/download?filename=1606931759-earl-babbie-the-practice-of-social-research-cengage-learning-2014.pdf&lesson=47529

Bhandari, P. (2022a). Correlational research | When & how to use. Scribbr. https://www.scribbr.com/methodology/correlational-research/

Bhandari, P. (2022b). How to calculate standard deviation (Guide) | Formulas & Examples. Scribbr. https://www.scribbr.com/statistics/standard-deviation/

Brody, N. (2018). Opting Out of Social Media: Online Communication Attitudes Mediate the Relationship Between Personality Factors and Facebook Non-Use. Southern Communication Journal, 83(2), 75–88. https://doi.org/10.1080/1041794x.2017.1413415

Channel, M. (2021). Vroom’s Expectancy Theory: How to Motivate Staff and Increase Performance. TSW Training. https://www.tsw.co.uk/blog/leadership-and-management/vrooms-expectancy theory/#:%7E:text=It%20works%20on%20the% 20assumption, will%20be%20to%20achieve%20it.

Chawla, D., & Joshi, H. (2020). Role of Mediator in Examining the Influence of Antecedents of Mobile Wallet Adoption on Attitude and Intention. Global Business Review. https://doi.org/10.1177/0972150920924506

Devanesan, J. (2020). The Philippines is going cashless – finally. Tech Wire Asia. https://techwireasia.com/2020/07/digital-payments-are-finally-soaring-in-the-philippines/

Gita-Carlos, R. (2021). PH ready for planned shift to ‘cashless’ society: Palace. Philippine News Agency. https://www.pna.gov.ph/articles/1133093

Graf-Vlachy, L., Buhtz, K., & König, A. (2018). Social influence in technology adoption: taking stock and moving forward. Management Review Quarterly, 68(1), 37–76. https://doi.org/10.1007/s11301-017-0133-3

Habib, S., & Hamadneh, N. N. (2021). Impact of perceived risk on consumers technology acceptance in online grocery adoption amid COVID-19 pandemic. Sustainability, 13(18), 10221. https://doi.org/10.3390/su131810221

Herrero, Á., Pérez, A., & del Bosque, I. R. (2014). Values and lifestyles in the adoption of new technologies applying VALS Scale. Academy of Marketing Studies Journal, 18(2), 37–56.https://www.researchgate.net/publication/287297956_Values_and_lifestyles_in_the_adoption_of_new_technologies_applying_vals_scale

Karahanna, E., Agarwal, R., & Angst, C. M. (2006). Reconceptualizing compatibility beliefs in technology acceptance research. MIS Quarterly, 30(4), 781–804. https://doi.org/10.2307/25148754

Khan, S. U., Liu, X., Khan, I. U., Liu, C., & Rasheed, M. I. (2020). Assessing the investors’ acceptance of electronic stock trading in a developing country. Information Resources Management Journal, 33(1), 59–82. https://doi.org/10.4018/irmj.2020010104

Lake, L. (2019). Perceived risk and how to overcome it. The balance small business. https://www.thebalancesmb.com/what-is-perceived-risk-2295541

Leung, L., & Chen, C. (2017). Extending the theory of planned behavior: A study of lifestyles, contextual factors, mobile viewing habits, TV content interest, and intention to adopt mobile TV. Telematics and Informatics, 34(8), 1638–1649. https://doi.org/10.1016/j.tele.2017.07.010

Merhi, M., Hone, K., & Tarhini, A. (2019). A cross-cultural study of the intention to use mobile banking between Lebanese and British consumers: Extending UTAUT2 with security, privacy and trust. Technology in Society, 59, 101151. https://doi.org/10.1016/j.techsoc.2019.101151

Mujis, D. (2013). Doing quantitative research in education with SPSS (2nd ed.). SAGE Publications Ltd. https://doi.org/10.4135/9781446287989

Mun, Y. P., Khalid, H., & Nadarajah, D. (2017). Millennials’ perception on mobile payment services in Malaysia. Procedia Computer Science, 124, 397–404. https://doi.org/10.1016/j.procs.2017.12.170

Namahoot, K., & Jantasri, V. (2022). Integration of UTAUT model in Thailand cashless payment system adoption: the mediating role of perceived risk and trust. Journal of Science and Technology Policy Management. https://doi.org/10.1108/jstpm-07-2020-0102

Naqvi, M. H. A., Jiang, Y., Miao, M., & Naqvi, M. H. (2020). The effect of social influence, trust, and entertainment value on social media use: Evidence from Pakistan. Cogent Business & Management, 7(1), 1723825. https://doi.org/10.1080/23311975.2020.1723825

Neil. (2022). PHL companies expect growth in cashless payments to continue. BusinessWorld Online. https://www.bworldonline.com/top-stories/2022/11/02/484311/phl-companies-expect-growth-in-cashless-payments-to-continue/

Patil, P., Tamilmani, K., Rana, N. P., & Raghavan, V. (2020). Understanding consumer adoption of mobile payment in India: Extending Meta-UTAUT model with personal innovativeness, anxiety, trust, and grievance redressal. International Journal of Information Management, 54, 102144. https://doi.org/10.1016/j.ijinfomgt.2020.102144

Peng, S., Yang, A., Cao, L., Yu, S., & Xie, D. (2017). Social influence modeling using information theory in mobile social networks. Information Sciences, 379, 146–159. https://doi.org/10.1016/j.ins.2016.08.023

Puasa, S., JiaLe, T., Gazali, H. M., & Ayub, N. (2021). Consumers’ behavioural intention to use e-wallet during the pandemic of COVID-19: applying the unified theory of acceptance and use of technology (UTAUT). Labuan Bulletin of International Business & Finance, 19(2), 64–78. https://jurcon.ums.edu.my/ojums/index.php/lbibf/article/view/2959

Rahadi, R., Nainggolan, Y., Afgani, K., Yusoff, Y., Muhammad, Z., Angelina, C., & Farooq, K. (2020). Conceptual model for cashless society: A literature synthesis. European Journal of Business and Management Research, 5(3). https://doi.org/10.24018/ejbmr.2020.5.3.343

Ridhwan, N., & Purwanto, E. (2020). The Unified Theory Acceptance and Use of Technology in the Industrial Internet of Things Era: A Conceptual Framework. KnE Social Sciences. https://doi.org/10.18502/kss.v4i14.7917

Setyanto, R. P., & Sunarjo, W. A. (2021). Will cashless payment become consumer’s transaction habit in the “new normal” era? TRIKONOMIKA, 20(1), 47–53. https://doi.org/10.23969/trikonomika.v20i1.3418

Setyanto, R. P., & Sunarjo, W. A. (2021). Will cashless payment become consumer’s transaction habit in the “New Normal” Era ? 20(1), 47–53.

Sharma, J. K., & Kurien, D. (2017). Perceived risk in E-commerce: A demographic perspective. NMIMS Management Review, 34(1), 31–57. https://management-review.nmims.edu/wp-content/uploads/2017/april/perceived-risk-in-e-commerce-a-demographic-perspective-jitendra-k-sharma-daisy-kurien.pdf

Shaw, N., & Sergueeva, K. (2019). The non-monetary benefits of mobile commerce: Extending UTAUT2 with perceived value. International Journal of Information Management, 45, 44–55. https://doi.org/10.1016/j.ijinfomgt.2018.10.024

Statista Research Department. (2022, May 20). Leading payment method in the Philippines 2021. Statista. https://www.statista.com/statistics/1246268/payment-methods-philippines/#:%7E:text=According%20to%20a%202020%20survey,percent%20of%20the%20respondents%2C%20respectively.

The rise of the Philippine cashless economy. (2021). Businessworld online. https://www.bworldonline.com/opinion/2021/10/19/404655/the-rise-of-the-philippine-cashless-economy/

Villanueva, J. (2022). PH digital transactions to grow despite challenges: BSP chief. Philippine News Agency. https://www.pna.gov.ph/articles/1166236

Wei, M., Luh, Y., Huang, Y. & Chang, Y.. (2021). Young generation’s mobile payment adoption behavior: Analysis based on an extended UTAUT Model. Journal of Theoretical and Applied Electronic Commerce Research. 16. 618-636. https://doi.org/10.3390/jtaer16040037

Wei, R. (2006). Lifestyles and new media: adoption and use of wireless communication technologies in China. New Media & Society, 8(6), 991–1008. https://doi.org/10.1177/1461444806069879

Wong, S., Wong, S., & Wong, S. (2023). Reasons why Filipinos are embracing cashless payment options. M2.0 Communications Inc. - Public Relations Firm. https://m2comms.com/2023/02/28/reasons-why-filipinos-are-embracing-cashless-payment-options/

Yang, M., Mamun, A. A., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Cashless transactions: A study on intention and adoption of e-Wallets. Sustainability, 13(2), 831. https://doi.org/10.3390/su13020831

Lualhati P. Sausa, Adventist University of Philippines

Lualhati Parulan Sausa, is a registered nurse and a licensed professional teacher, with Bachelor of Science in Secretarial Administration and Bachelor of Science in Nursing, MBA and PhD in Business Management degrees. She already served as administrative secretary to the AUP president, Office Administration department chair, College of Business dean, and Graduate Business Department (MBA and PhD in Commerce programs) chair. Currently, she is a full-time professor at the College of Business of AUP.

References

Abdul Rais, N. A., Mohd Yusop, N., Sabtu, S. N., & Shamsul Bahrin, N. E. E. (2022). Cashless society in campus: student’s usage and level of awareness. Voice of Academia (VOA), 18(1), 58-66.

Adrian, M. (2018). Is the Philippines ready to go cashless? iMoney.Ph. https://www.imoney.ph/articles/cashless-payment-philippines/

Altin Gumussoy, C., Kaya, A., & Ozlu, E. (2017). Determinants of mobile banking use: An extended TAM with perceived risk, mobility access, compatibility, perceived self-efficacy and subjective norms. Lecture Notes in Management and Industrial Engineering, 225–238. https://doi.org/10.1007/978-3-319-71225-3_20

Babbie, E. (2015). The practice of social research - Standalone Book (14th ed.) [E-book]. Cengage Learning. https://lms.su.edu.pk/download?filename=1606931759-earl-babbie-the-practice-of-social-research-cengage-learning-2014.pdf&lesson=47529

Bhandari, P. (2022a). Correlational research | When & how to use. Scribbr. https://www.scribbr.com/methodology/correlational-research/

Bhandari, P. (2022b). How to calculate standard deviation (Guide) | Formulas & Examples. Scribbr. https://www.scribbr.com/statistics/standard-deviation/

Brody, N. (2018). Opting Out of Social Media: Online Communication Attitudes Mediate the Relationship Between Personality Factors and Facebook Non-Use. Southern Communication Journal, 83(2), 75–88. https://doi.org/10.1080/1041794x.2017.1413415

Channel, M. (2021). Vroom’s Expectancy Theory: How to Motivate Staff and Increase Performance. TSW Training. https://www.tsw.co.uk/blog/leadership-and-management/vrooms-expectancy theory/#:%7E:text=It%20works%20on%20the% 20assumption, will%20be%20to%20achieve%20it.

Chawla, D., & Joshi, H. (2020). Role of Mediator in Examining the Influence of Antecedents of Mobile Wallet Adoption on Attitude and Intention. Global Business Review. https://doi.org/10.1177/0972150920924506

Devanesan, J. (2020). The Philippines is going cashless – finally. Tech Wire Asia. https://techwireasia.com/2020/07/digital-payments-are-finally-soaring-in-the-philippines/

Gita-Carlos, R. (2021). PH ready for planned shift to ‘cashless’ society: Palace. Philippine News Agency. https://www.pna.gov.ph/articles/1133093

Graf-Vlachy, L., Buhtz, K., & König, A. (2018). Social influence in technology adoption: taking stock and moving forward. Management Review Quarterly, 68(1), 37–76. https://doi.org/10.1007/s11301-017-0133-3

Habib, S., & Hamadneh, N. N. (2021). Impact of perceived risk on consumers technology acceptance in online grocery adoption amid COVID-19 pandemic. Sustainability, 13(18), 10221. https://doi.org/10.3390/su131810221

Herrero, Á., Pérez, A., & del Bosque, I. R. (2014). Values and lifestyles in the adoption of new technologies applying VALS Scale. Academy of Marketing Studies Journal, 18(2), 37–56.https://www.researchgate.net/publication/287297956_Values_and_lifestyles_in_the_adoption_of_new_technologies_applying_vals_scale

Karahanna, E., Agarwal, R., & Angst, C. M. (2006). Reconceptualizing compatibility beliefs in technology acceptance research. MIS Quarterly, 30(4), 781–804. https://doi.org/10.2307/25148754

Khan, S. U., Liu, X., Khan, I. U., Liu, C., & Rasheed, M. I. (2020). Assessing the investors’ acceptance of electronic stock trading in a developing country. Information Resources Management Journal, 33(1), 59–82. https://doi.org/10.4018/irmj.2020010104

Lake, L. (2019). Perceived risk and how to overcome it. The balance small business. https://www.thebalancesmb.com/what-is-perceived-risk-2295541

Leung, L., & Chen, C. (2017). Extending the theory of planned behavior: A study of lifestyles, contextual factors, mobile viewing habits, TV content interest, and intention to adopt mobile TV. Telematics and Informatics, 34(8), 1638–1649. https://doi.org/10.1016/j.tele.2017.07.010

Merhi, M., Hone, K., & Tarhini, A. (2019). A cross-cultural study of the intention to use mobile banking between Lebanese and British consumers: Extending UTAUT2 with security, privacy and trust. Technology in Society, 59, 101151. https://doi.org/10.1016/j.techsoc.2019.101151

Mujis, D. (2013). Doing quantitative research in education with SPSS (2nd ed.). SAGE Publications Ltd. https://doi.org/10.4135/9781446287989

Mun, Y. P., Khalid, H., & Nadarajah, D. (2017). Millennials’ perception on mobile payment services in Malaysia. Procedia Computer Science, 124, 397–404. https://doi.org/10.1016/j.procs.2017.12.170

Namahoot, K., & Jantasri, V. (2022). Integration of UTAUT model in Thailand cashless payment system adoption: the mediating role of perceived risk and trust. Journal of Science and Technology Policy Management. https://doi.org/10.1108/jstpm-07-2020-0102

Naqvi, M. H. A., Jiang, Y., Miao, M., & Naqvi, M. H. (2020). The effect of social influence, trust, and entertainment value on social media use: Evidence from Pakistan. Cogent Business & Management, 7(1), 1723825. https://doi.org/10.1080/23311975.2020.1723825

Neil. (2022). PHL companies expect growth in cashless payments to continue. BusinessWorld Online. https://www.bworldonline.com/top-stories/2022/11/02/484311/phl-companies-expect-growth-in-cashless-payments-to-continue/

Patil, P., Tamilmani, K., Rana, N. P., & Raghavan, V. (2020). Understanding consumer adoption of mobile payment in India: Extending Meta-UTAUT model with personal innovativeness, anxiety, trust, and grievance redressal. International Journal of Information Management, 54,

https://doi.org/10.1016/j.ijinfomgt.2020.102144

Peng, S., Yang, A., Cao, L., Yu, S., & Xie, D. (2017). Social influence modeling using information theory in mobile social networks. Information Sciences, 379, 146–159. https://doi.org/10.1016/j.ins.2016.08.023

Puasa, S., JiaLe, T., Gazali, H. M., & Ayub, N. (2021). Consumers’ behavioural intention to use e-wallet during the pandemic of COVID-19: applying the unified theory of acceptance and use of technology (UTAUT). Labuan Bulletin of International Business & Finance, 19(2), 64–78. https://jurcon.ums.edu.my/ojums/index.php/lbibf/article/view/2959

Rahadi, R., Nainggolan, Y., Afgani, K., Yusoff, Y., Muhammad, Z., Angelina, C., & Farooq, K. (2020). Conceptual model for cashless society: A literature synthesis. European Journal of Business and Management Research, 5(3). https://doi.org/10.24018/ejbmr.2020.5.3.343

Ridhwan, N., & Purwanto, E. (2020). The Unified Theory Acceptance and Use of Technology in the Industrial Internet of Things Era: A Conceptual Framework. KnE Social Sciences. https://doi.org/10.18502/kss.v4i14.7917

Setyanto, R. P., & Sunarjo, W. A. (2021). Will cashless payment become consumer’s transaction habit in the “new normal” era? TRIKONOMIKA, 20(1), 47–53. https://doi.org/10.23969/trikonomika.v20i1.3418

Setyanto, R. P., & Sunarjo, W. A. (2021). Will cashless payment become consumer’s transaction habit in the “New Normal” Era ? 20(1), 47–53.

Sharma, J. K., & Kurien, D. (2017). Perceived risk in E-commerce: A demographic perspective. NMIMS Management Review, 34(1), 31–57. https://management-review.nmims.edu/wp-content/uploads/2017/april/perceived-risk-in-e-commerce-a-demographic-perspective-jitendra-k-sharma-daisy-kurien.pdf

Shaw, N., & Sergueeva, K. (2019). The non-monetary benefits of mobile commerce: Extending UTAUT2 with perceived value. International Journal of Information Management, 45, 44–55. https://doi.org/10.1016/j.ijinfomgt.2018.10.024

Statista Research Department. (2022, May 20). Leading payment method in the Philippines 2021. Statista. https://www.statista.com/statistics/1246268/payment-methods-philippines/#:%7E:text=According%20to%20a%202020%20survey,percent%20of%20the%20respondents%2C%20respectively.

The rise of the Philippine cashless economy. (2021). Businessworld online. https://www.bworldonline.com/opinion/2021/10/19/404655/the-rise-of-the-philippine-cashless-economy/

Villanueva, J. (2022). PH digital transactions to grow despite challenges: BSP chief. Philippine News Agency. https://www.pna.gov.ph/articles/1166236

Wei, M., Luh, Y., Huang, Y. & Chang, Y.. (2021). Young generation’s mobile payment adoption behavior: Analysis based on an extended UTAUT Model. Journal of Theoretical and Applied Electronic Commerce Research. 16. 618-636. https://doi.org/10.3390/jtaer16040037

Wei, R. (2006). Lifestyles and new media: adoption and use of wireless communication technologies in China. New Media & Society, 8(6), 991–1008. https://doi.org/10.1177/1461444806069879

Wong, S., Wong, S., & Wong, S. (2023). Reasons why Filipinos are embracing cashless payment options. M2.0 Communications Inc. - Public Relations Firm. https://m2comms.com/2023/02/28/reasons-why-filipinos-are-embracing-cashless-payment-options/

Yang, M., Mamun, A. A., Mohiuddin, M., Nawi, N. C., & Zainol, N. R. (2021). Cashless transactions: A study on intention and adoption of e-Wallets. Sustainability, 13(2), 831. https://doi.org/10.3390/su13020831