Introduction- Zhiem
In this study, we will present a clear overview by introducing the growing use
of e-wallets among small businesses in the Philippines. We focuses on how
digital payment systems influence business operations and overall
performance, including income, transaction speed, customer convenience,
and customer attraction. We logically move from the general context of
cashless payments to the specific situation of small businesses in Long
Beach, San Agustin, Romblon, making the purpose and scope of the study
easy to understand.
Background of the Study- Zhiem
We have observed how digital payment methods, especially e-wallets, have
made transactions faster and more convenient, particularly during the
pandemic. While these tools are widely used in urban areas of the
Philippines, their adoption in rural communities like Long Beach, San Agustin,
Romblon remains slow. We noticed that many small business owners hesitate
to use e-wallets due to unstable internet connections, security concerns,
transaction fees, and limited digital knowledge. Although some businesses
benefit from faster transactions and improved customer convenience, others
struggle to keep up with digital changes. This gap affects the
competitiveness and growth of small businesses in rural areas. Because of
this, we chose to study how the use or non-use of e-wallets impacts small
business performance. We believe this study is relevant in identifying
challenges and opportunities that can help small business owners adapt to
the growing digital economy.
Theoritical Framework- Marian
Our study is based on the Technology Acceptance Model (TAM) developed by
Davis in 1989. This theory explains why people choose to use or not use new
technology. It is commonly used in studies about digital tools like e-wallets,
so it supports our research well. The Technology Acceptance Model focuses
on two important factors: Perceived Usefulness (PU) and Perceived Ease of
Use (PEOU). Perceived Usefulness (PU) means how much small business
owners believe that using e-wallets is helpful to their business. For example,
e-wallets can make payments faster, more convenient, and more efficient. If
business owners see that e-wallets help improve their daily transactions,
they are more likely to use them. Perceived Ease of Use (PEOU) means how
easy and simple e-wallets are to learn and use. If business owners find e-
wallets easy to understand and do not require much effort, they will feel
more comfortable using them in their business. According to the Technology
Acceptance Model, when e-wallets are useful and easy to use, small business
owners are more willing to accept and use them. Therefore, this theory
supports our study by explaining why small business owners decide to use e-
wallets in their daily transactions.
Conceptual Framework- Leomar
The conceptual framework of the study is logically presented using the
Input–Process–Output (IPO) model and is anchored on the Technology
Acceptance Model (TAM). The input variables include the profile of the
respondents and the key factors of perceived usefulness and perceived ease
of use of e-wallets. These inputs are systematically processed through data
collection using survey questionnaires, followed by tabulation, interpretation,
and analysis of the data. The output variables reflect the results of the
process, such as wider customer reach, increased sales, reduced costs, ease
of use, security, and customer satisfaction. This clear paradigm shows how
the identified variables are related and explains how perceived usefulness
and ease of use influence the adoption of e-wallet payment systems among
small business owners.
Statement of the Problem- Kylla
The general problem of this study is to determine how e-wallet usage affects
the business performance of small businesses in Long Beach, San Agustin,
Romblon. To address this, the study focuses on specific problems. First, it
identifies the profile of the respondents to understand their type of business
and experience in using e-wallets. Second, it examines how e-wallets affect
technology use by measuring perceived usefulness and perceived ease of
use. Third, it determines how e-wallet usage affects business performance in
terms of sales, operational cost, and profit. Lastly, the study examines
whether there is a relationship between e-wallet usage and business
performance. These specific problems help ensure that the study is focused,
measurable, and aligned with the research topic.
Importance of the Study- Kylla
This study is important because it helps us understand the effects of using e-
wallets on small businesses in our community. It shows how e-wallets can
attract more customers, make payments faster, and help businesses grow.
This study can guide small business owners in deciding whether to use
digital payments and can also help local officials improve digital payment
programs in rural areas.
Definition of Terms- Marian
This section defines the key concepts and variables used in our study about
e-wallets among small businesses in Long Beach, San Agustin, Romblon. E-
wallets refer to digital payment applications used by business owners for
cashless transactions. In this study, e-wallets are the main tool for receiving
and sending payments. Business performance is measured through customer
satisfaction and profit. Customer satisfaction refers to how convenient and
fast payments are for customers, while profit refers to improved sales and
smoother cash flow for business owners. Digital payments mean cashless
transactions done using e-wallets, which make payments faster and more
convenient. Lastly, financial inclusion refers to giving small business owners
access to digital financial services, allowing them to participate in cashless
transactions even without traditional banks.
Scope and Delimitations- Ejay
The scope of the study focuses on examining how e-wallets, particularly
GCash, affect the performance of small businesses in Long Beach, San
Agustin, Romblon. The participants include owners of local stores, food stalls,
and bakeries, and the data are gathered through surveys or interviews
covering the past 6 to 12 months. The study is limited only to e-wallet usage
and its effects on small businesses. It does not include other factors such as
marketing strategies, business location, or broader economic conditions, as
these are outside the coverage of the research.
Research Method and Techniques to be Used- Zhiem
This study employed a descriptive quantitative, non-experimental research
design. It is appropriate because the study aims to describe and measure
SME owners’ perceptions of e-wallet usefulness without manipulating
variables or introducing treatments. Data were gathered at a single point in
time using a survey questionnaire with a Likert scale, making the design
suitable for quantifying opinions and experiences. The use of purposive
sampling ensured that only SME owners with actual e-wallet experience were
included, while descriptive statistics (frequency, percentage, weighted mean)
allowed for an objective and systematic analysis of perceptions regarding e-
wallet use.
Research Locale and Time of the Study- Leomar
This study was conducted in Mahabangbaybay, San Agustin, Romblon, an
area known for its active local businesses and frequent visitors. The site was
chosen because many small business owners in the area use e-wallets as
their primary mode of payment, making it suitable for examining the impact
of mobile payment systems on small business performance. The participants
were selected small business owners in Mahabangbaybay who actively use
e-wallets. A purposive sampling method was used to ensure that
respondents had relevant experience with digital payments. Data were
collected on October 20, 2025, through structured surveys and interviews.
The entire research process was carried out from October to November 2025
to ensure the reliability and validity of the study’s findings.
Population and Samples of Study- Ejay
This study involves small and medium enterprise (SME) owners in
Mahabangbaybay, San Agustin, Romblon who use or are familiar with e-
wallet services. Simple random sampling is used to select participants. When
the population is limited, all SME owners are include
Research Instrument- Kylla
The data in this study is collected through a self-made structured survey
questionnaire. This questionnaire is based on the Technology Acceptance
Model by Davis. It focuses on how useful and how easy e-wallets are to use
for small business owners. This helps us measure their acceptance and
experience in using digital payment systems.
Data Gathering- Marian
This study uses a quantitative descriptive research design. This design is
appropriate because it allows the researchers to collect numerical data and
describe how SME business owners in Mahabangbaybay, San Agustin,
Romblon perceive the usefulness of e-wallets such as GCash and Maya. The
main research instrument is a questionnaire, which is divided into three
parts. The first part gathers the demographic profile of the respondents, such
as age, gender, and type of business. The second part measures the level of
perceived usefulness of e-wallets, focusing on convenience, security, and
profit increase. The third part determines the respondents’ overall perception
of using e-wallets in their business operations. For data analysis, the study
uses descriptive statistical tools. Frequency and percentage are used to
summarize the demographic profile of the respondents. Weighted mean is
used to analyze the level of perceived usefulness and overall perception of e-
wallet usage. These statistical tools are appropriate because they help
present the data clearly, make results easy to understand, and support
accurate interpretation of the findings.
RRL
RRL This chapter discusses the related literature that supports our study
about the adoption of e-wallets, particularly GCash, among MSMEs. The
literature is organized based on the key variables of the Technology
Acceptance Model or TAM, namely Perceived Usefulness and Perceived Ease
of Use, which were proposed by Davis in 1989. Perceived Usefulness
Perceived Usefulness refers to how users believe that using an e-wallet
improves their business performance. According to Davis (1989), when users
see a technology as helpful, efficient, and beneficial, they are more likely to
adopt and continue using it. Perceived Ease of Use Perceived Ease of Use
refers to how easy it is for users to learn and operate an e-wallet system,
such as GCash (Davis, 1989). Studies show that simplicity and convenience
increase user confidence and satisfaction (Lacap, 2022). When the
application has easy navigation and fast processing, users tend to use it
more frequently. This ease of use also strengthens customer loyalty, as both
business owners and customers find the system reliable and user-friendly.
Convenience E-wallets provide faster transactions, shorter waiting time, and
fewer errors. They also simplify record-keeping, enable real-time monitoring,
and reduce cash-handling risks, allowing MSMEs to operate more efficiently.
Degree of Security Security is another important factor influencing e-wallet
adoption. According to Camia and Ignacio (2023), users are more likely to
continue using and recommending e-wallets when they trust the system.
Strong data privacy measures, fraud prevention systems, and secure
infrastructures build long-term confidence among users. This sense of
security encourages MSMEs to rely on e-wallets for daily transactions.
Increase in Sales Studies show that e-wallets help increase sales. For
example, GCash recorded a 700% growth in digital transactions (Globe
Telecom, 2023), showing that MSMEs using e-wallets benefit from higher
sales and better customer satisfaction due to faster and more convenient
payments. In summary, the reviewed literature shows that e-wallet adoption
among MSMEs is strongly influenced by perceived usefulness, ease of use,
convenience, security, and profit increase. These factors support the
relevance of the Technology Acceptance Model and justify the variables used
in our study.