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The Impact of Gcash on Increasing

Digital Transactions for Local Food Businesses

In partial fulfillment of the subject Science, Technology, and Society

(GESCIE+)

Submitted By:

Del Rosario, Charles Raven B.

Guevarra, Dan Cedrick O.

Llanto, Neekah L.

Quian, Anna Marie P.

Uranza, Earth John F.

Glen B. Millar, CRS, MAEd

April 2025

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Table of Contents

Abstract............................................................................................................................................3

Introduction..................................................................................................................................... 3

Objectives.........................................................................................................................................5

Statement of the Problem............................................................................................................... 5

Rationale.......................................................................................................................................... 6

Local Literature.............................................................................................................................. 7

Foreign Literature...........................................................................................................................8

Methodology.................................................................................................................................... 9

Research Design......................................................................................................................... 9

Participants of the Study.............................................................................................................9

Data Gathering Instrument....................................................................................................... 10

Data Gathering Procedure........................................................................................................ 10

Data Analysis............................................................................................................................11

Significance of the Study...............................................................................................................11

Timeline..........................................................................................................................................14

References:.....................................................................................................................................16

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Abstract

This research aims to assess the impact of GCash, a leading mobile wallet in the Philippines,

on the increasing adoption of digital transactions among local food businesses. As the shift

toward cashless payment systems continues to grow, particularly in response to evolving

consumer preferences and digital innovation, this study investigates how GCash influences

transaction volume, frequency, and consumer behavior. It also explores the operational challenges

experienced by small food enterprises in integrating GCash into their business practices.

The study will utilize a quantitative descriptive research design, targeting local food business

owners in Tanauan City who have been using GCash for at least three months. Data will be

collected using a structured questionnaire composed primarily of Likert-scale items adapted from

existing validated studies. These items will measure perceptions of convenience, transaction

efficiency, customer preferences, and common challenges such as system glitches and transaction

fees. Responses will be analyzed using descriptive statistics, including frequency, percentage,

mean, and standard deviation.

By focusing on the practical experiences of microentrepreneurs, the study seeks to provide

evidence-based insights into the effectiveness and limitations of digital payment platforms like

GCash. The findings are expected to inform local business strategies, enhance consumer

transaction experiences, and support policymakers and fintech developers in improving digital

payment systems for small-scale enterprises.

Introduction

The rapid advancement of financial technology has significantly transformed how businesses

and consumers engage in economic transactions. In the Philippines, mobile wallet platforms have

grown in popularity due to their convenience, speed, and accessibility. Among these platforms,

GCash has emerged as a leading digital payment tool, especially during the COVID-19 pandemic,

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which accelerated the transition toward cashless systems. As a leading mobile wallet application

in the Philippines, GCash enables users to conduct cashless transactions for bills, goods, services,

and even international money transfers (Globe, 2024) While large retailers and corporations

quickly adopted digital payment solutions, small-scale businesses, such as local food vendors, are

gradually integrating mobile wallets into their operations. Digital payments have proven to be

a successful invention in several industrialized nations because of their enormous savings in

terms of time, effort, and money (Alkhowaiter, 2022)

Local food businesses—ranging from carinderias and food stalls to small

restaurants—represent a vital part of the Philippine economy. However, their capacity to adapt to

digital financial tools remains uncertain due to technical limitations, consumer adaptability, and

operational concerns. Although GCash has been widely adopted, the extent of its impact on

business performance, customer behavior, and transaction processes among these enterprises has

not been fully explored. Promotion of digital payment options may have a considerable effect on

consumer behavioral intention, which precedes their actual use of this system (Chaveesuk et al.,

2021).

This study aims to assess the impact of GCash on the increasing adoption of digital

transactions among local food businesses. Specifically, it seeks to examine (1) the extent of

GCash usage in terms of transaction volume and frequency, (2) how it influences consumer

purchasing behavior, and (3) the challenges encountered in its adoption. The researchers utilize a

structured questionnaire to gather data from selected food business owners in Tanauan City.

By understanding the practical experiences of local entrepreneurs, this research intends to

offer insights that can inform digital payment strategies, improve financial technology platforms,

and guide policy development for inclusive digital transformation in the small business sector.

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Objectives
This study aims to assess the impact of GCash on the increasing adoption of digital

transactions among local food businesses. It explores how GCash has facilitated the growth of

cashless payments by analyzing transaction volume and frequency among small food enterprises.

Additionally, it examines the influence of GCash on consumer purchasing behavior, particularly

in terms of convenience, payment preferences, and spending patterns. The study also identifies

the challenges faced by local food businesses in adopting GCash, including technical limitations,

transaction costs, and customer adaptability. Through this research, the study seeks to provide

insights into the role of digital payment platforms in enhancing financial transactions within the

local food industry.

Statement of the Problem

The rapid adoption of digital payment platforms has transformed the way businesses operate,

particularly in the local food industry. As one of the leading mobile wallets in the Philippines,

GCash has enabled small food businesses to transition toward cashless transactions. However, the

extent of its impact on transaction volume, consumer behavior, and business operations remains

unclear. Thus, this study aims to address the following questions:

●​ To what extent has GCash contributed to the growth of cashless transactions among local

food businesses in terms of transaction volume and frequency?

●​ How does the use of GCash influence consumer purchasing behavior, particularly in

terms of convenience, payment preferences, and spending patterns?

●​ What challenges do local food businesses encounter in adopting GCash, including

technical limitations, transaction costs, and customer adaptability?

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By answering these questions, the study seeks to provide a deeper understanding of the role of

GCash in enhancing digital transactions for local food businesses while identifying areas for

improvement in its adoption and implementation.

Rationale

Due to the rapidly evolving landscape of financial technology in the Philippines, researchers

have observed a growing frequency of mobile payment platforms in everyday transactions,

particularly within the food industry, which has traditionally operated on cash-based systems. The

transition toward cashless payments represents a significant shift in how businesses operate and

how consumers interact with these establishments. The study focuses specifically on GCash stems

from its position as one of the leading mobile wallets in the Philippines, with widespread

adoption across various demographics. The platform's integration into local food businesses

presents a unique opportunity to examine how digital payment solutions are reshaping traditional

commerce models in a sector that directly impacts daily consumer experiences.

This research is particularly timely as the Philippines continues to push toward greater

financial inclusion and digital transformation. Local food businesses, which form a significant

part of the country's economic landscape, are at a critical juncture where embracing digital

payment solutions may determine their competitiveness and sustainability. This study will seek to

contribute meaningful insights that can guide business owners, payment platform developers, and

policymakers in creating more effective strategies for digital payment adoption within the local

food sector.

Moreover, assessing GCash's contribution to the growth of cashless transactions aligns with

the researchers' interest in quantifying the actual economic impact of digital payment adoption.

By analyzing transaction volume and frequency, the study aims to provide concrete evidence of

how GCash has influenced business operations, revenue streams for local food enterprises, and to

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fill the knowledge gap regarding the practical implications of digital payment adoption in

small-scale food enterprises, thereby supporting the ongoing evolution. Also, this study aims to

contribute to a comprehensive understanding of GCash's role in fostering digital transactions in

the local food sector and relevant insights for stakeholders looking to capitalize on the digital

change in financial transactions.

Local Literature

GCash has emerged as a pivotal digital payment tool for microentrepreneurs and local food

business owners in the Philippines. Its intuitive interface, fast transaction processing, and secure

system have enabled small vendors, market stall owners, and carinderia operators to streamline

daily operations, reduce reliance on cash handling, and increase sales (Pueblos et al., 2023). The

platform’s additional features—such as savings, loans, and salary disbursement—have also

promoted financial inclusion among small enterprises.

The rising adoption of mobile wallets like GCash is largely influenced by the growing use of

smartphones, consumer demand for convenience, and support from government initiatives

promoting financial technology (Susilo & Dizon, 2023). These tools have helped many small

business owners expand their reach and improve customer service by offering flexible payment

options.

However, challenges remain. Some businesses report technical issues, unstable internet

connections that affect daily operations. According to Cacas et al. (2022), factors such as ease of

use, social influence, and financial incentives play a critical role in shaping user behavior toward

mobile wallet adoption, particularly among older demographics like Generation X. These insights

suggest that while many embrace digital payments, adoption may vary based on age, access to

technology, and level of digital literacy.

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Despite these barriers, surveys indicate a high level of consumer awareness and willingness to

use contactless payments. Data from the Bangko Sentral ng Pilipinas and the Visa Consumer

Attitudes Study show that Filipino consumers are increasingly recognizing the benefits of digital

platforms, which positions GCash as a major force in modernizing payment systems and

empowering local food businesses (Zoleta, 2021; Visa, 2019).

Foreign Literature

The global shift to digital payment platforms has significantly transformed financial

transactions and consumer behavior, particularly during and after the COVID-19 pandemic. In

countries like Indonesia, mobile wallets such as OVO, DANA, and GoPay experienced rapid

growth, with OVO alone reporting a 267% increase in transactions during lockdown periods

(Raza et al., 2021). This surge highlights how mobile payment platforms can thrive in emerging

economies with high mobile penetration and evolving financial infrastructures, much like the

Philippine setting.

Research on mobile electronic payment systems (M-EPS) emphasizes that user preferences

are influenced by three primary factors: security, ease of use, and transaction costs. These factors

shape not only consumer trust but also the decision to adopt cashless payments in daily business

activities. Tounekti et al. (2019) observed that when these elements are well-integrated, they

significantly enhance digital transaction efficiency and user satisfaction.

Security remains a major concern for users of digital financial platforms across the globe.

Patra et al. (2022) emphasized the integration of artificial intelligence, biometric verification, and

big data analytics in enhancing the safety of mobile payments. These advanced technologies help

detect fraud, protect user identities, and maintain system integrity—critical for both consumer

confidence and sustainable platform adoption.

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Moreover, the rise of digital wallets has not only changed how people pay but also how entire

economies function. Lokhande (2025) described how online payment systems—from basic credit

cards to decentralized finance (DeFi) and central bank digital currencies—have revolutionized the

speed, accessibility, and security of transactions. These innovations have empowered small

businesses by expanding access to financial services and digital marketplaces.

Cashless payments are also associated with broader social and economic benefits. Armey et

al. (2015) and Aguirre (2017) argue that digital payment systems reduce the risks of theft,

monetary fraud, and street crime. They further suggest that the adoption of e-payment systems

contributes to economic development not only in developed nations but also in developing

countries by promoting transparency and increasing formal financial participation.

Methodology

Research Design

This study utilized a quantitative descriptive research design to examine the impact of

GCash on the increasing digital transactions of local food businesses. This design is appropriate

for obtaining measurable and statistical data that reflect the frequency, trends, and perceptions of

business owners regarding the use of GCash as a digital payment platform. By gathering

numerical data through online surveys, the researchers aimed to quantify the relationship between

GCashA usage and its influence on transaction volume, consumer purchasing behavior, and

operational challenges.

Participants of the Study

The participants of the study were local food business owners operating within Tanauan City.

A total of 50 respondents were selected using purposive sampling, targeting business owners who

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have integrated GCash as one of their payment methods. These included owners of carinderias,

food stalls, small restaurants, coffee shops, and mobile food vendors. The inclusion criteria

required that participants had been using GCash in their business operations for at least three

months to ensure familiarity and relevance.

Data Gathering Instrument

The researchers plan to use a structured survey questionnaire as the primary data collection

tool for this study. The questionnaire will be adapted from existing studies related to digital

payment systems and mobile wallet usage, specifically instruments that have been previously

validated in similar contexts. Relevant questions from the study of Najib & Fahma (2020), will

serve as a foundation. The instrument will be carefully revised to ensure alignment with the

specific objectives and variables of this research, which focuses on GCash usage among local

food business owners.

The adapted questionnaire will be modified to fit the local context and tailored to address the

three main areas of the study: (1) the extent and frequency of GCash usage, (2) its impact on

consumer purchasing behavior, and (3) the challenges faced in adopting the platform. Items will

use a five-point Likert scale ranging from "Strongly Disagree" (1) to "Strongly Agree" (5) to

allow for measurable and comparable responses.

Data Gathering Procedure

The data-gathering process began after securing approval from the research adviser. The

researchers identified and selected participants using purposive sampling, specifically targeting

local food business owners who were active users of GCash in their operations. Participants were

approached either in person or online, depending on their availability and preference. Each

participant was provided with an informed consent form, which explained the purpose of the

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study, ensured confidentiality, and emphasized their right to withdraw at any time without

consequence.

The primary instrument used in the study was a structured questionnaire composed mainly of

Likert-scale items. These items measured the extent of GCash usage, its perceived benefits and

impact on business operations, consumer behavior, and the challenges experienced in digital

transactions. Respondents rated each item on a five-point scale, ranging from "Strongly Disagree"

(1) to "Strongly Agree" (5), allowing a better understanding of their perceptions and experiences.

The questionnaires were distributed via Google Forms. The researchers ensured the completeness

and validity of each response before proceeding with the analysis.

Data Analysis

Once the data had been gathered, the responses were encoded into a spreadsheet and

analyzed using descriptive statistical methods. Microsoft Excel was used to compute the

frequency, percentage, mean, and standard deviation of each item. These statistical tools helped

identify trends, average responses, and the general attitudes of local food business owners toward

GCash usage. The researchers analyzed the data by grouping similar variables to interpret how

GCash influenced transaction frequency, customer preferences, and operational efficiency. The

use of Likert-scale responses enabled the researchers to quantify the degree of agreement among

participants and draw meaningful conclusions about the role of GCash in enhancing digital

transactions within the local food sector.

Significance of the Study

This study is important because it looks at how local restaurants handle digital payments

using GCash, a widely used mobile wallet in the Philippines. It is more crucial than ever to

understand how mobile payment apps change how businesses and customers behave in the

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Philippines, where technology is growing more advanced. This study looks at how often

consumers use GCash, how it affects their purchases, and what issues business owners have with

it. The results give many significant groups useful information:

Local Food Business Owners

The study highlights the benefits and challenges of using GCash in daily operations for small

and local food enterprises. According to the study's conclusions, they can enhance their offerings

by processing transactions more quickly, using less cash, and attracting more customers who

prefer digital payments. The study also identifies common problems like technical difficulties, a

lack of training, or a bad internet connection, which aids business owners in knowing what has to

be improved to make better use of digital technologies.

GCash Developers and Service Providers

The findings of the research give developers direct feedback about users' sentiments,

especially small business owners. It allows them to enhance the GCash platform by making it

easier to use, fixing problems, and adding features that are advantageous to businesses. These

changes can make users happier, build trust, and create loyalty for business clients.

Customers

From the customers' perspective, the study illustrates how convenient and effective it is to

pay with GCash when purchasing food and other products from local vendors. It describes how

electronic payment systems can make shopping more convenient through faster, more secure, and

more convenient payment options. These results can assist businesses and app developers in

providing what customers need.

Government and Policymakers

This research aligns with the government initiatives in advancing financial inclusion and

digitalization of micro, small, and medium-scale businesses (MSMEs). Policymaking,

infrastructural development, and public programs promoting the utilization of digital wallets can

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be guided by the findings of this research. This can lead to deepening local economies and

expanding financial services, particularly in rural or less developed areas.

Students

This study is relevant to students, particularly those pursuing business, marketing,

information technology, or entrepreneurship. It demonstrates to them how digital payment

systems operate in the real world and makes them realize how technology can be used to improve

business processes. The information from this study can be used to assist with school

assignments, business planning, or future careers in digital business and innovation.

FAITH Colleges

This research assists FAITH Colleges in fulfilling its mission of equipping students for work

and facilitating research for local and national development. This research contributes to the

academic material of the school by offering material for class teaching, research presentations,

and community activities. This research also indicates FAITH Colleges' commitment to the

development of new thinking, digitalization, and small business growth in the local community.

Future Researchers

Lastly, this study is a good platform for other studies on digital payment systems, fintech,

mobile wallet usage, and small business management. It offers data, insights, and real-life

scenarios that other researchers can use to further study, compare, or conduct case studies. This

research provides useful and timely insights on how GCash facilitates digital payment expansion

in the Filipino food sector. The findings serve to benefit many individuals, such as business

owners, developers, students, and schools like FAITH Colleges. They also assist in understanding

how technology can aid in economic growth and digital preparedness.

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Timeline

Table 1. Timeline

The table outlines an 8-week research schedule with an additional final week dedicated to

submission and presentation preparation. The process began on February 7 with topic approval,

where the researcher consulted an adviser to finalize the research title. From February 10 to 14,

research planning took place, involving outlining objectives, defining the scope, and conducting

background reading. During February 17 to 21, the introduction was written, including the

objectives, problem statement, and rationale. The period from March 3 to 7 focused on gathering

and writing both local and foreign literature. By March 24 to 28, the researcher completed the

"Significance of the Study" section. In the week of April 7 to 11, the methodology and timeline

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sections were completed—specifically, the methodology on April 9 and the timeline on April 10.

April 14 to 18 was devoted to revising all sections based on feedback and updating references.

From April 28 to May 2, the abstract was written after the full paper was finalized. Lastly, the

final week, from May 5 to 9, was allocated for final proofreading, submission of the completed

research paper, and preparation for defense or class presentation.

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