The Study of the Effectiveness of Cashless Payment Method in the Philippine Supermarket

Through Consumer Satisfaction

Emmanuel J. Dotong
Lyceum of the Philippines University - Manila

Abstract

Cashless payment method has been an alternative transaction in the retail industry. The
objective of the study was to determine the level of satisfaction, main advantage, usage, and
preference of consumers in using cashless payment method in the selected supermarkets in Metro
Manila. In addition, it aimed to provide a comparative and correlational analysis of variables to
determine their significant differences and relationships. The researcher used a self – administered
survey questionnaire and gathered the data through mall – intercept inside the three (3) selected
supermarkets. The researcher used quantitative method as a research design utilizing descriptive
statistics.

The findings revealed that consumers are satisfied in using cashless payment methods in
the supermarket in terms of cashless security, cashless convenience, and sales promotion. Based
on the consumer perception, greater security is the main advantage of cashless transaction having
the gift card/ check as the most used and most preferred cashless payment method. Study showed
that there is a significant difference between the security satisfaction of male respondents to that
of female respondence as well as the age groups for millennials vs gen x in terms of sales
promotion satisfaction. In addition, findings suggest that the correlation among the consumer
satisfaction variables (cashless security, cashless convenience, and sales promotion) has positive
significance to the overall consumer satisfaction.

Key Words: Cashless Transaction, Supermarket Payment Method, Consumer Satisfaction

Introduction

In a business to consumer (B2C) transactions, there are two (2) ways or modes a consumer
can use to pay for their bills: the cash payment and the cashless payment method. A cash payment
method is the conventional way of paying your bills wherein a consumer is using an actual money
or cash to create a transaction in exchange for goods or services. On the other hand, cashless
payment or cashless transaction is an alternative way of paying your bills in the supermarket. The
use of the alternative method which is the non – cash transactions continue to grow due to emerging
technological advancement. In the study of World Payment Report as cited by Yu (2017), the
global cashless transaction volumes grew over 11.2% reaching US$ 433.1 Billion from year 2014
– 2015. In the Philippines, the usage of cashless payment also rose for the past decades. Cashless
payment is one of the options that consumers used in purchasing goods in the grocery or
supermarket. While people are getting comfortable with cashless payments, some technical issues
are holding back many consumers from embracing the newer platforms. These can be found on
several studies that using cashless payment as a method for a transaction has several disadvantages.
Some of the studies, on the other hand, propose that there are more advantages in using cashless
payment as a method in lieu of using cash. Waiting for the serpentine queues at any cashpoint or
ATMs in malls is really time consuming and deteriorates the concept of accessibility and
convenience. With a limited time to purchase and cash in hand, most people are rushing to cashless
transactions.

Having a cashless transaction in an economy does not necessarily mean shortage of cash
rather it indicates a culture of people settling transactions digitally. In a modern economy, money
moves electronically, hence, the spread of digital payment culture along with the expansion of
infrastructure facilities is needed to achieve the goal of business. (Ramya, Sivaskthi, & Nandhini,
2017) One of the most common cashless transactions in the Philippines is found in retail industry.
This is evident to the country because it has the three (3) of the biggest mall in the world.
(Touropia.com, 2017) Shopping is one of the necessary activities for consumers as they need to
satisfy their physiological needs such as food and clothing. More often than not, this activity helps
consumers to walk around shops or stores, relax, and have fun in looking for something they want
or need. However, shopping can also irritate consumer especially if they are not satisfied with their
experience.

Consumer Satisfaction plays an important role for businesses because it can be a

performance indicator to measure customer loyalty that leads to the potential return on sales. In
addition, by satisfying consumers, it can help you attract new customers in a competitive business
environment. Kotler (2006) defined consumer satisfaction as “person’s feeling of pleasure or
disappointment which resulted from comparing a product’s perceived performance or outcome
against his/ her expectations” The satisfaction of the consumer varies primarily based on the
person’s experience consuming the product or service. Other researches regarding customer
experience (Verhoef, et al.) recognizes the importance of past customer experiences, service
interfaces, store environments, and store brands which validates the importance of the extended
3P’s of Kotler which is the people, physical evidence, and process.

In business, the most important thing is to meet or exceed customers’ expectation if not
earning a profit. One of the challenges the retail industry experience is the long queuing and slow
transactions in their cashier area. In fact, up until year 2013, all retail financial transactions in the
Philippines are being done using cash payment method, creating inefficiencies and leakages in the
country’s economy, as cited by the central bank of the country. (Montecillo, 2013) For a couple of
decades in the retail industry, the introduction of department stores, supermarkets, and regional
malls among others were all revolutionary. However, (Peyton, 2012) argues that the development
of the industry through innovation of their products and services is slow if not constant. Sometime
in the three years of last recession, the retail industry innovations have been focused on the new
smartphone and tablet devices that are facilitating a whole new way of shopping. With this regard,
one of the innovations of the retail sector is the cashless payment transaction for the supermarket
and other retail establishments.

Paul & Friday (2012) defined cashless transactions as an economic setting wherein goods
and services are transacted without using of cash. These means that a consumer can create a
transaction without using actual money in exchange for goods or services through cashless
payment such as checks, credit and debit card, e-cash, bitcoin, gift card, and checks among other
methods. With the opportunity to increase the consumer loyalty of the retail sector, the cashless
method was introduced in different supermarkets. For the past few years, different companies such
as telcos, banks, fintech startups, financial services, and offline-to-online (O2O) firms have rolled
out their e-wallets in the Philippines tailor fit mostly for the country’s unbanked population of 72.9
million or 69 per cent of 105.7 million Filipinos. (Noda, 2018)

In terms of cash security, some of the developed countries and poorer communities have
places where “cash crimes,” such as mugging, rubbing, and holdups are most ubiquitous. (Armey,
Lipow, & Webb, 2014) With this regard, the industrialized process in developed countries in terms
of electronic financial transactions could prove to be an innovative and transformative way of
transacting in different business sectors in a developing country to avoid such crimes. While the
phrase “Cash is King” has always been the rule of thumb in transactions, the innovation towards
transactions says otherwise.

According to Armey (2014), using cashless payment has numerous advantages. Unlike
traditional cash transaction, cashless payments discourage robbery and other cash-related crimes.”
Due to the liquidity and transactional anonymity of cash, consumers carrying cash are vulnerable
to street crime. Adopting cashless payments can even decrease robbery crime percentage in the
area, minimize the potential threat of robbery, kidnapping, monetary fraud, and others. Gao (2000)
also added that in e-cash, one of the types of cashless transaction, has several advantages such as
reducing transaction process time, process cost, and cash distribution costs among others. The
elimination of charges in the transaction can help not just the retail sector but also for the
convenience of the consumers. In addition, the cashless payment particularly the digital payments
go well beyond convenience. The Digital payments or e – payment improves consumer spending
and economic development not just in the developed countries but also for developing countries.
(Aguirre, 2017).

Furthermore, Kasavana (2016) emphasized that “cash payments have eluded a significant
segment of the self-service industry” not to mention that most consumers that are driven by reward
programs and convenience have shifted from cash to cashless payments. Despite the several
advantages of the cashless payment in the supermarket, it is undeniable that there are also some
disadvantages in the said method.

Thomas (2010) describes card payments as “emotionally more inert than cash” payment.
When having a transaction using card-based payment in supermarkets, customers are mandated to
swipe their cards in a terminal; a device used for swiping the card for the transaction. This process
could affect the queuing in the supermarket making the customers feeling satisfied or unsatisfied.
Moreover, the mode of payment does not only affect how much is spent but also the type of
purchase the customer buys. He also emphasized that the credit card payment, one of the cashless
mode of payment increases the incidence of unhealthy, unplanned, and indulgent food purchases.
However, (Bagchi & Block, 2011) argued that cash payment increases the food purchase of the
customers because impulsive buying of food purchases provides an instant affective fix to the pain
caused by parting with cash.

The inconsistent findings suggest that mode of payment is one of the factors that affect not
only on physical dimensions but also in terms of the emotional and mental aspect the consumer
experiences. One of the problems the consumer encounters is the security of cashless payments in
the supermarket, which is the card fraud. Recently, the European Central Bank (ECB) reported
that the value of card fraud increased by 14.8% in 2012. (European Central Bank, 2014) However,
in the United States, the Better than Cash Alliance and the Cashless Battlefield shows that the US
government agencies are highly satisfied with the efficiency and effectiveness of e – payment
technologies as a medium of payment to improve the public safety in a skeptic and dangerous
places. (Armey, Lipow, & Webb, 2014)

In the Philippines, the cashless transactions have incrementally increased because of the
trends nowadays in terms of e-commerce in the millennial generation. Due to this, the Bangko
Sentral ng Pilipinas (BSP), the Central Bank of the Philippines initiated a program in partnership
with the private corporation and government agencies to further evolve the cashless payment
solutions. (Nair, 2016) Despite the efforts of the government, the prevailing preference for cash
over cashless transactions particularly the electronic payments in the Philippines does not reflect
the country’s reputation as one of the world’s leaders in the creation of innovative applications for
the use of electronic platforms. (Montecillo, 2013) For this reason, the researchers aimed to
determine the level of satisfaction, main advantage, usage, and preference of consumers in using
cashless payment method in the selected supermarkets in Metro Manila. In addition, it aimed to
provide a comparative and correlational analysis of variables to determine their significant
differences and relationships.
Research Methodology

Quantitative method in a form of descriptive research was used as the research design to
describe the effectiveness of cashless payment through consumer satisfaction. A self –
administered survey questionnaire was used as a research instrument to gather the four hundred
(400) respondents as a sample population that was computed through the G power software. In
terms of data gathering procedure, respondents are determined through purposive sampling using
mall – intercept in the selected supermarkets. The researchers employed a desk review of existing
journals, reports, and relevant case studies for the research and performed basic statistical analysis
in all the data gathered.

Research Instrument and Validation, and Ethical Considerations

To identify the degree of satisfaction of the customers in a cashless payment method, the
researchers conducted a survey on customer perceptions and experience on the relevant topics
according to the pre-set questionnaire. The respondents’ demographic profile such as gender, age,
and profession, and cashless payment attributes were the variables included in the pre-set
questionnaire for profiling. The questionnaire was validated through a pre-test given to thirty (30)
selected customers who frequently buys in the selected supermarket to identify the flaws of the
survey questionnaire. Moreover, final questionnaire was also validated by industry practitioner for
further improvement. The locale of the study was in Metro Manila in three (3) selected
supermarkets which will not be named for confidentiality and privacy purposes.

Sample Population and Data Gathering Procedures

The sample population was determined through Slovin’s formula and was gathered through
purposive sampling using mall – intercept. The responses to the questionnaire were collected from
January to March 2017 and distributed to 400 customers in selected supermarkets located in Metro
Manila. The MS Excel software was used as a tool for tabulation of raw data while the IBM SPSS
Software was used to test the hypothesis.
Statistical Treatment of Data

The researcher used basic statistical treatment to determine the level of satisfaction and
effectiveness of cashless payment method to the consumers. Mean was used by the researchers to
determine the level of satisfaction of the respondents in terms of cashless security, cashless
convenience, and cashless rewards. The result gathered in the survey questionnaire was analyzed
through its frequency distribution, range, percentage, and through ranking. In addition, the
researchers utilized the Likert scale to identify the range and interpretation of each result. The
descriptive equivalent used for the study was computed based on the recommended 5-point scale
range which is 1.00 – 1.80 as Strongly Disagree (Very Dissatisfied), 1.81 – 2.60 as Disagree
(Dissatisfied), 2.61 – 3.40 as Neutral, 3.41 – 4.20 as Agree (Satisfied) and 4.21 – 5.00 as Strongly
Agree (Very Satisfied) For the comparative and correlation of variables, the researcher used T test
Independent means, Analysis of variance (ANOVA) for identifying the significant differences
between consumer satisfaction and demographic profile of the respondents. Chi – square method
was use for the correlation of nominal data and Pearson R. for the correlation of consumer
satisfaction.
Objectives and Hypothesis
The objective of the study was to determine the level of satisfaction, main advantage,
usage, and preference of consumers in using cashless payment method in the selected supermarkets
in Metro Manila. In addition, it aimed to provide a comparative and correlation of variable to
identify the significant differences and relationship among the different variables.

In pursuance of the above objectives, the following hypotheses were formulated for
testing:

H01: There is no significant relationship among the cashless security, cashless convenience, and
sales promotion to consumer satisfaction
H02: There is no significant difference between consumer satisfaction and the gender of the
respondents
H03: There is no significant difference between consumer satisfaction and the age group of the
respondents
H04: There is no significant difference between consumer satisfaction and the employment status
of the respondents
H05: There is no significant difference between consumer satisfaction and the visited supermarket
of the respondents
H06: There is no significant relationship among the main advantages in using cashless payment to
the level of satisfaction of consumers
H06: There is no significant relationship between the mode of payment to the level of satisfaction
of consumers
Results and Discussion

Demographics Variables Frequency Percent

Gender Male 203 50.75
Female 197 49.25
Age Group Below 25 years old 186 46.50
26 - 35 years old 147 36.75
36 – 45 years old 48 12.00
Above 46 years old 19 4.75
Student 81 20.25
Employment Private Sector Employee 178 44.50
Status Public Sector Employee 92 23.00
Self – Employed 37 9.25
Others 12 3.00
Visited Supermarket A 103 25.75
Supermarket Supermarket B 124 31.00
Supermarket C 173 43.25
Table 1: Demographic Profile of the Respondents

Table 1 shows that the gender of the respondents is almost divided equally with a 50.75%
male and 49.25% female which composed of 400 respondents. Majority of the respondents’ age
are ranging from 25 years old and below and 26-35 years old with 46.50% for the former and
36.75% for the latter age group. Most of the respondents are working in the private sector that
composed of 44.50% of the population. Majority of the respondents are gathered from
Supermarket C having 43.25% of the total respondents.

Variables Mean Descriptive Interpretation

Equivalent
Cashless Security 3.97 Agree Satisfied
Assurance of Money Security 4.00 Agree Satisfied
Assurance of Purchase Security 4.00 Agree Satisfied
Assurance of Account Security 3.90 Agree Satisfied
Cashless Convenience 3.81 Agree Satisfied
Minimize Time Consumption 3.89 Agree Satisfied
No need to carry Money 3.82 Agree Satisfied
As mode of Payment Alternative 3.71 Agree Satisfied
Sales Promotion 3.97 Agree Satisfied
Discounts and Rebates 4.00 Agree Satisfied
Reward Points 3.98 Agree Satisfied
Freebies 3.92 Agree Satisfied
Overall Evaluation 3.91 Agree Satisfied

Overall Consumer Satisfaction Security Cashless Sales Promotion

Satisfaction Convenience
Pearson
1 .493** .365**
Correlation
Cashless Security
Sig. (2-tailed) .000 .000
N 400 400 400
Pearson
.493** 1 .274**
Correlation
Cashless Convenience
Sig. (2-tailed) .000 .000
N 400 400 400
Pearson
.365** .274** 1
Correlation
Sales Promotion
Sig. (2-tailed) .000 .000
N 400 400 400
**. Correlation is significant at the 0.01 level (2-tailed).
Table 2: Level of Consumer Satisfaction on Cashless Payment Method

Table 2 describes the level of satisfaction of the respondents in terms of security,

convenience, and rewards of the cashless transactions. The table shows that all variables (Cashless
Security, Cashless Convenience, and Sales Promotion) have the same response which is agree with
an interpretation as satisfied. The assurance of money security and assurance of purchase security
was the highest among the variables in cashless security satisfaction. Rana (2017) supports that
despite the potential security issues and potential delays in the payment process of a cashless
payment method, it is still an effective strategy for security purposes and convenience of the
consumers. However, the results for the study contradicts Rana as the respondents perceived
cashless transaction as time – saving since it has the highest mean for the cashless convenience
variable. In terms of cashless rewards, the discounts and rebates are the main reason for the
satisfaction of the respondents.

Analyzing the correlation of the variables, results shows that there is a significant
relationship among the consumer satisfaction variables and consumer satisfaction. With r-value of
.493, there is a Moderate Positive Significant Correlation between Security Satisfaction and
Convenience. With r-value of .365, there is a Low Positive Significant Correlation between
Security Satisfaction and Sales Promotion. With r-value of .274, there is a Low Positive Significant
Correlation between Convenience and Sales Promotion. Hence, the null hypothesis rejected.

Demographics Variables Frequency Percent

Male 203 50.75
Gender Female 197 49.25
Total 400 100.00

Consumer Satisfaction Sum of df Mean F Sig.

Squares Square
Cashless Between Groups 2.905 1 2.905 4.060 .045
Security Within Groups 284.792 398 .716
Total 287.698 399
Cashless Between Groups .655 1 .655 .947 .331
Convenience Within Groups 274.985 398 .691
Total 275.640 399
Sales Promotion Between Groups 1.240 1 1.240 2.685 .102
Within Groups 183.758 398 .462
Total 184.997 399
***VICS: Male (Mean 4.23) > Female (Mean 4.06)
Table 3: Significant Difference of Consumer Satisfaction to Gender

Table 3 was analyzed through Analysis of Variance (ANOVA) in terms of consumer

satisfaction to gender. This shows that the cashless security satisfaction for Male (Mean 4.23) is >
Female (Mean 4.06) which means that there is a significant difference between the security
satisfaction of male respondents to that of female respondents. Hence, the null hypothesis is
rejected.
Demographics Variables Frequency Percent
Age Group Below 25 years old 186 46.50
26 - 35 years old 147 36.75
36 – 45 years old 48 12.00
Above 46 years old 19 4.75
Total 400 100.00

Consumer Satisfaction Sum of df Mean F Sig.

Squares Square
Cashless Between Groups 2.523 3 .841 1.168 .322
Security Within Groups 285.175 396 .720
Total 287.698 399
Cashless Between Groups 2.655 3 .885 1.284 .279
Convenience Within Groups 272.985 396 .689
Total 275.640 399
Sales Between Groups 4.708 3 1.569 3.447 .017
Promotion Within Groups 180.289 396 .455
Total 184.998 399
***VISP: 26 to 35 versus 36 to 45 with p-value of 0.033

Table 4: Significance Difference of Consumer Satisfaction to Age Group

Based on the statistical analysis, the null hypothesis is rejected. Table 4 suggest that there
is a significant difference between the respondents within 26 – 35 years old and 36 – 45 years old
in terms of sales promotion satisfaction with p – value of 0.003. According to the definition of
Millennial Marketing in the report of Fromm (2016), people that are born from 1979 to 1995 are
part Millennial generation while people born from 1964 – 1978 are part Gen X generation. The
generation gap of the two (2) age groups have different preference, personality, and behavior
among others. Hence, the difference between the satisfaction of the 2 groups varies due to
generation preference in terms of sales promotion.
 Demographics Variables Frequency Percent
Student 81 20.25
Employment Private Sector Employee 178 44.50
Status Public Sector Employee 92 23.00
Self – Employed 37 9.25
Others 12 3.00
Total 400 100.00

Consumer Satisfaction Sum of df Mean F Sig.

Squares Square
Cashless Security Between Groups 8.430 4 2.108 2.981 .019
Within Groups 279.267 395 .707
Total 287.698 399
Cashless Between Groups 3.459 4 .865 1.255 .287
Convenience
Within Groups 272.181 395 .689
Total 275.640 399
Sales Promotion Between Groups 7.071 4 1.768 3.924 .004
Within Groups 177.927 395 .450
Total 184.998 399
***VISP: Public Sector Employee versus Others with p-value of 0.023
Table 5: Significance difference of Consumer Satisfaction to Employment Status

Based on the statistical analysis, the null hypothesis for table 5 is rejected. The findings
showed that there is a significant difference between the public sector employee to others
(unemployed) in terms of the sales promotion satisfaction. Hence, the null hypothesis is rejected.
 Demographics Variables Frequency Percent
Visited Supermarket A 103 25.75
Supermarket Supermarket B 124 31.00
Supermarket C 173 43.25
Total 400 100.00

Consumer Satisfaction Sum of df Mean F Sig.

Squares Square
Cashless Between Groups 4.827 2 2.413 3.38 .035
Security 7
Within Groups 282.871 397 .713
Total 287.698 399
Cashless Between Groups .533 2 .267 .385 .681
Convenience Within Groups 275.107 397 .693
Total 275.640 399
Sales Between Groups 14.491 2 7.245 16.8 .000
Promotion 70
Within Groups 170.507 397 .429
Total 184.998 399
*** VISS: Supermarket 2 versus Supermarket 3 with p-value .035
VISP: Supermarket 1 versus Supermarket 3 with p-value .002
VISP: Supermarket 2 versus Supermarket 3 with p-value .000

Table 6: Significance difference of Consumer Satisfaction to the Visited Supermarket

Based on the result, table shows that there is a significant difference among the different
supermarkets in terms of sales promotion satisfaction (Supermarket A versus Supermarket C with
p-value .002; Supermarket B versus Supermarket C with p-value .000) and cashless security
(Supermarket B versus Supermarket C with p-value 0.35) The said differences is evident due to
the differences of market segments of the supermarkets.
 Frequency Percent Valid Cumulative Rank
Percent Percent
Valid Greater Security 221 55.3 55.3 74.5 1st
Time Saving 102 25.5 25.5 100.0 2nd
Cash Discounts 43 10.8 10.8 10.8 3rd
Ease of Use 34 8.5 8.5 19.3 4th
Total 400 100.0 100.0

Table 7: Main Advantage of Using Cashless Payment Method (Consumer Perception)

The table 7 suggest that the greater security is the main advantage of using cashless
payment method for transactions in the supermarket followed by time saving and cash discounts.
According to (Rehman, Coughlan, & Halim, 2012) Secure transactions are the hall mark of any
cashless payment system. Customers are looking for more secure modes of settlement on day to
day business transactions which validates the main benefit of using cashless payment method in
the supermarkets.

Frequency Percent Valid Cumulative Rank

Percent Percent
Valid Gift Card/ Check 154 38.5 38.5 100.0 1st
Credit Card 95 23.8 23.8 23.8 2nd
Debit Card 83 20.8 20.8 44.5 3rd
Mobile Wallet/ 68 17.0 17.0 61.5 4th
E-Wallet
Total 400 100.0 100.0

Table 8: Most Used Mode of Payment

Based on the results above, the gift card/check is the most used cashless payment methods
of the consumers followed by credit card and debit card. Gift Cards according to the Incentive Gift
Card Council (n.d.), explains that using gift card is a guilt – free spending. Consumers don’t feel
guilty treating themselves when using gift cards since it is specifically used to purchase a certain
goods. In addition, Eioba (2006) emphasized that consumers will pay less attention to sales and
they tend to spend more than what they have on the card. Retailers notice that consumers will
spend the whole amount on the card and have a small balance of $2 or $3 left on it. Chances are,
shoppers will never use the card again and this works to the retailer's advantage.
 Variables Rank
Gift Card/ Check 1st
Credit Card 2nd
Stored Value Loyalty Card 3rd
Debit Card 4th
Mobile Wallet/ 5th
E-Wallet
Table 9: Most Preferred Cashless Payment by Consumers

Respondents were asked to rank their most preferred cashless payment method in the
supermarket: 1 as the most preferred and 5 as the least preferred. Table 5 shows that the most
preferred cashless payment method is still through gift card or gift check followed by credit card.
Although credit card was ranked 2nd in the study, NXGEN (2016) claims that credit cards are
becoming the most common payment method. Consumers who use credit card as cashless payment
spend more than if they were paying with cash. Stored value loyalty card placed 3rd as most
preferred transaction due to its trend and rewards. A stored value loyalty card is a reward card of
establishments that can be loaded and served as alternative cash. In the Philippines, there are no
data of Stored Value Loyalty Card in retail stores but rather a regular loyalty/reward card that
cannot be loaded. Furinto (2011) emphasized that loyalty cards attract consumers through the
rewards system in a form of real cash, bonus points, vouchers, and rebates among other rewards.
Conclusion and Recommendation

Cashless as a mode of payment in the Philippine supermarket particularly in Metro Manila

provides satisfaction to consumers from different age groups, employment status, and gender. With
the result of satisfactory in terms of cashless transactions, supermarkets need to improve more the
quality of service they provide to their consumers. Findings revealed that males are more satisfied
in terms of cashless security transaction than female consumers, hence, supermarkets should create
a strategy to convince the consumers that cashless payment method is safe. It is also important to
note that the rewards from the cashless transactions specifically the discounts and rebates provides
the highest satisfactory rating among the sales promotion. Given this fact, it is highly
recommended to the supermarkets to create a better sales promotion strategy relating to cashless
transactions.

Based on the result, there is a significant difference between the sales promotion
satisfaction of millennial consumer to gen x consumer. Given this fact, supermarkets should create
sales promotion strategies based on their segmented target market. In addition, results claimed that
there is a significant difference between the public sector employee to unemployed consumers in
terms of sales promotion satisfaction. The said fact creates opportunity for future researchers to
determine the buying behavior of public sector employees in terms of using cashless payment
method. Cashless transactions nowadays, provides better transparency, scalability, and
accountability. Based on the respondent’s perception, the main advantage of cashless payment
method is the greater security while the most used cashless payment method is the gift card.
Moreover, the most preferred cashless payment method by the respondents is still gift card/check
followed by credit card. These means that the agencies providing gift card/check to consumers
should continue and improve their marketing strategy to maximize the usage of gift card/ check in
the Philippine supermarket. As noted in the study, it revealed that the 3rd most preferred cashless
payment method by consumers is stored value loyalty card. In the Philippine supermarket, the
players do not have any stored value loyalty cards programs in the status quo as compared to food
and beverage industry, hence, it is recommended to initiate and create a stored value loyalty card
programs in the supermarkets to further attract the current consumers to purchase store value
loyalty cards which can result to brand loyalty. In addition, the financial firms particularly the
banks should also create a move in developing a better promotional strategy in terms of credit card
rewards since credit card is the second most preferred cashless payment method in the
supermarkets.

In the Philippines, the adoption of cashless payment transactions is picking up at a furious

pace. While the cashless transaction in the Philippine supermarket meets the satisfaction of the
consumers, it is still recommended to further improve the security process, ease of use, and
promotional strategy of the supermarkets to satisfy the consumers beyond their expectations.
Furthermore, this bold move will compel more merchants to accept cashless payment methods in
the near future.
References:

Aguirre, Z. (2017). Going Cashless. The Manila Times. Manila: The Manila Times. Retrieved
December 7, 2017, from http://www.manilatimes.net/going-cashless/360413/
Armey, L., Lipow, J., & Webb, N. (2014). The Impact of Electronic Financial Payments on
Crime. Information Economics and Policy.
Bagchi, R., & Block, L. (2011). Chocolate Cake Please! Why Do Consumers Indulge More
When It Feels More Expensive? Journal of Public Policy & Marketing.
eioba. (2006). Gift Cards: The Advantages and Disadvantages. Retrieved from
http://www.eioba.com: http://www.eioba.com/a/5s1/gift-cards-the-advantages-and-
disadvantages
European Central Bank. (2014). Third Report of Card Fraud. European Central Bank.
Fromm, J. (2016). Generation at a Glance. Retrieved from Millennial Marketing:
http://www.millennialmarketing.com/2017/09/6-defining-characteristics-of-boomers-gen-
x-and-millennials-you-need-to-know/
Furinto, A. (2011, December). Price or Privilege? Customer Perception on Loyalty Programs.
ASEAN Marketing Journal, Volume III, 81.
Gao, J. (2000, May). Electronic Cash Payment Protocols and Systems. Electronic Cash Payment
Protocols and Systems. (S. J. University, Ed.) Computer, Information, & Systems
Engineering.
Kasavana, M. (2016). Innovative Cashless Solutions: Influencing an Industry's Tipping point.
The Journal of Hospitality Financial Management.
Kotler, P. &. (2006). Marketing Management. Prentice-Hall.
Montecillo, P. (2013). 98% of Retail Transactions in PH Done in Cash. Philippine Daily
Inquirer. Inquirer.net. Retrieved November 4, 2017, from
http://business.inquirer.net/138427/98-of-retail-transactions-in-ph-done-in-cash
Nair, V. (2016). Eschewing Cash: The Challenges of Cashless Transactions in the Philippines.
Journal of Southeast Asian Economies.
Noda, T. (2018). 17 E-Wallets in The Philippines You Should Know. Fintechnews.sg. Retrieved
from http://fintechnews.sg/26724/philippines/e-wallets-in-the-philippines/
NXGEN. (2016). Advantages and Disadvantages of DIfferent Payment Types. Retrieved from
https://us.nxgen.com/: https://us.nxgen.com/advantages-and-disadvantages-of-different-
payment-types/
Paul, & Friday. (2012). Nigeria's Cashless Economy: The Imperatives. International Journal for
Management and Business Studies, 31-36.
Peyton. (2012). Shopping: A Whole New Meaning. TIAA-CREF Global Real Estate, Strategy &
Research.
Ramya, N., Sivaskthi, D., & Nandhini, M. (2017). Cashless transaction: Modes, Advantages and
Disadvantages. International Journal of Applied Research. Retrieved from
www.allresearchjournal.com
Rana, R. (2017). Study of Consumer Perception of Digital. Journal of Internet Banking and
Commerce, 22(3). Retrieved from http://www.icommercecentral.com/open-access/study-
of-consumer-perception-of-digital-payment-mode.pdf
Rehman, S., Coughlan, J., & Halim, Z. (2012). Usability Based Reliable and Cashless Payment.
International Journal of Innovative Computing, Information and Control, 8(4), 2747-
2759. Retrieved from http://www.ijicic.org/ijicic-10-10073.pdf
Thomas, M. D. (2010). How Credit Card Payments Increase. Journal of Consumer Research,
Inc.
Touropia.com. (2017). 10 Largest Malls in the World. Retrieved from www.touropia.com:
https://www.touropia.com/largest-malls-in-the-world/
Verhoef, P., Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M., & Schlesingerd, L. (n.d.).
Customer Experience Creation: Determinants, Dynamics and Management Strategies.
Journal of Retailing, 85(1). Retrieved December 12, 2017, from
http://www.sciencedirect.com/science/article/pii/S0022435908000845?via%3Dihub
Yu, D. (2017). China Pushes Global Growth in Non - Cash Transactions. The Asset.