Effect of Online Payment in Life of Consumers

In Partial Fulfilment of the Requirements

Group 1

Ashley Russell D. Cabaral

Hazel Mae C. Manzano

Lorraine M. Barroga

Joven D. Vicencio

Jade C. De Asis

VIVIAN S. RAMOS

Research Teacher

September 2023
 CHAPTER I

THE PROBLEM AND IT’S BACKGROUND

Introduction

Money was a very large function in every life. As the function of money as a

means of payment in economic transactions, money is inseparable from the process of

economic transactions. In addition, money can also be said as an important indicator in a

country's economy. This is because all economic activities namely production,

distribution, and consumption are closely related to money. The role of money in the

economy cannot be doubted because money can facilitate the economic activities of the

society. Mobile technology has become increasingly common in today’s everyday life.

However, mobile payment is surprisingly not among the frequently used mobile services,

although technologically advanced solutions exist. Apparently, there is still a lack of

acceptance of mobile payment services among consumers. In the past few years, many

corporations have been focusing on introducing more e-payment services, as enterprises

involved in payment and communication technologies attempt to solve people’s everyday

challenges and perceive it as a viable economic opportunity.

Electronic money is a non-cash payment instrument that can make life easier.

Unfortunately, there are still many people who do not understand the function and

method of using this payment instrument. One of the things that cause the public to still

not use electronic money is because people assume that electronic money is the same as

other types of cards such as debit or credit cards, even though it is clearly different.

Electronic money can be used without using a PIN or other personal identification, while
debit cards and credit cards still use the pin input system in transactions. This is clearly

different from e-money which is certainly much easier and more practical to use

(Agbaeze, 2017; Jaminyasa, 2017). The development of e-money is able to create a trend

of less-cash society, which is a public behavior that uses non-cash transactions by

utilizing the conveniences offered by these transaction tools (Waspada, 2012).

The fast advancement of communications, mobile technologies, and the

proliferation of mobile devices has increased the importance of mobile payment (m-

payment) services for users (Baptista and Oliveira, 2015). Although m-payment presents

convenience, ubiquity, and time-saving for consumers, it is not always readily accepted

or used by consumers. Such a payment system can be deployed to operate in numerous

areas: for e.g. public transport payment, shopping, e-tickets, banking, healthcare and

collection of loyalty points.

The use of technology in online payments has grown rapidly, and every country

has a system of online payment platforms (Javad, 2022; Siagian, 2022). An E-wallet is a

transaction that is used to make transactions using a smartphone or computer as a

substitute for a card (Chalik & Faturohman, 2022). E-wallet payment is defined as a

cashless payment with a digital system in online business trading or e-commerce to

increase the country's competitiveness and make it easier for the community (Yang,

2021). Digitalization allows customers to have new ways of making existing payments

and transactions. Electronic services owned by consumers can easily make online

payments and increase consumer confidence in getting products (Li, 2020). An E-wallet

is an electronic service that can store data and funds that can be used as a means of

payment without using a card (Foster, 2022). E-wallets are currently easy for millennials
to use in making payments online, as well as getting rewards in the form of cashback and

points (Pertiwi, 2020).

Statement of the Problem

General Problem:

This study aims to determine the effect of online payment in life of consumers.

Specifically, it aims to answer the following question:

1. What is the demographic profile of the consumers in the terms of:

1.1 Age

1.2 Sex

1.3 Section

2. How consumers' lives are made easier by using online payment?

3. What are the positive and negative effects of online payment in fasters

transaction?

4. What are the benefits of using online payment on consumer’s lives?

Significance of the Study

The study of the effect of online payments in the lives of consumers is a topic of

significant interest and importance in today's digital age. Online payments have become

increasingly prevalent in recent years, and their impact on consumers can be understood

from various perspectives:

Convenience and Efficiency. Online payments offer a level of convenience that

traditional payment methods often can't match. Consumers can make transactions from
the comfort of their homes or while on the go, without the need for physical cash or

checks.

Global Accessibility. Online payments break down geographical barriers. Consumers

can make purchases from anywhere in the world, enabling access to a wider range of

products and services.

Financial Inclusion. Online payments can improve financial inclusion by providing

access to banking and financial services for those who may not have had it before.

Impact on Consumer Behavior. The ease of online payments can influence consumer

behavior. It can lead to changes in purchasing patterns, such as more frequent, smaller

transactions, or an increase in impulse purchases.

Technological Literacy and Adoption. Understanding and using online payment

systems can contribute to technological literacy. As digital transactions become more

prevalent, being proficient in online payments is becoming an important life skill.

Sudirman, I. W. (2019). Influence factor of consumers interest on using E-money.

Lai, P. C. "Design and Security impact on consumers' intention to use single platform E-
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