On Dabawenyo`s Opinion on the Effects, Benefits and Disadvantages of Using Cashless Payment Platforms

The University of Mindanao Institute of Popular Opinion (UM -IPO) conducted an online survey from December 5 to 25, 2024, gathering 1,550 responses from Dabawenyos in the three districts of Davao City to know their opinion on the effects, benefits, and disadvantages of using cashless payment platforms.

Since the survey was done online, IPO relied heavily on online, pre-defined, targeted social media users who met the inclusion criteria. The survey was disseminated via sponsored ads on two Meta platforms (Facebook and Instagram). Respondents were defined to be at least 18 years old, targeted for contact within the defined geographical radius, have valid/active email addresses, and have utilized any cashless payment platform. The survey was done at a 95% confidence level and a 3% margin of error. Three (3) questions were asked to cover issues such as the nature and frequency of usage, the effect on one's spending behavior, and the benefits and disadvantages of using cashless platforms. 

Based on the survey, 77.4% of the 1,550 respondents disclosed that they use cashless payment platforms. Nine out ten users reported using mobile wallets (Gcash, Maya, etc). Online banking (24.0%) and debit/credit cards (23.83%) were also utilized but to a lesser extent. When asked in terms of usage frequency, 3 out of 10 (34.58%) Dabawenyos used cashless payment platforms several times a week, 3 out of 10 (27.42%) used them rarely, while the rest used them weekly (13.75%), monthly (13.58%) and daily (10.67%). 

 

Table 1. Have you used a cashless payment platform?

Yes120077.4
No35022.6
Total1550100

 

Table 2. Which cashless payment platforms do you use most frequently?*

Mobile Wallets (Gcash, Maya, etc)112593.75
Online Banking28824.00
Credit/Debit Cards28623.83
Other/s181.50

*multiple choice

 Table 3. How often do you use cashless payment platforms?

Daily12810.67
Several times a week41534.58
Weekly16513.75
Monthly16313.58
Rarely32927.42
Total1,200100.0

 

In terms of usage patterns and preferences, 6 out of 10 (64.58%) Dabawenyos used cashless payments for online shopping, 6 out of 10 (57.33%) used for bill payments, 5 out of 10 (47.17%) used them for groceries, and 4 out of 10 (41.67%) used them for dining out. Other notable uses included transportation, tuition fees, and mobile load top-ups. 

 Table 4. What type of purchase do you typically make using cashless payment platforms?

Groceries56647.17
Dining out50041.67
Online shopping77564.58
Bills and utilities68857.33
Transportation1099.08
Other/s363.00
Allowance1747.2
Load Wallet8.67
Food2.17
Games4.33
Tuition5.42

*Multiple choice

 When asked about the impact of cashless payments on spending habits, a divided response was obtained. 4 out of 10 (36.33%) Dabawenyos stated that they spend more due to ease of transactions, while 2 out of 10 (21.42%) indicated that they spend less likely due to better tracking tools; meanwhile, 3 out of 10 (33.02%) saw no impact on their spending behavior and 1 out of 10 (18.83%) was unsure. On the other hand, the primary factors influencing changes in spending habits were convenience (45.58%), impulse buying (19.92%), and promotional discounts (18.42%). 

Table 5.  On the effect of cashless payment platforms to spending behavior

Yes, I spend more.43636.33
Yes, I spend less25721.42
No, it does not affect my spending40133.42
Unsure1068.83

 

Table 6. What do you think are the main reasons for your spending behavior change?

Convenience of making payments54745.58
Ease of tracking spending23419.5
Promotions or discounts offered through cashless platforms22118.42
Impulse buying tendencies23919.92
Other/s383.17

*multiple choice

 Finally, we asked the respondents about the benefits and disadvantages of cashless payment platforms. Regarding benefits, 8 out of 10 (84.50%) Dabawenyos stated that these platforms offer convenience and speed, while 5 out of 10 (52.08%) highlighted the reduced need for physical cash. Additionally, 4 out of 10 (44.33%) agreed that cashless payment platforms enhance expense tracking. On the other hand, respondents also recognized potential disadvantages, with 7 out of 10 (65.83%) Dabawenyos reporting experiencing technical issues or outages. Privacy concerns were raised by 5 out of 10 (50.77%) respondents, while the presence of transaction fees was noted by 5 out of 10 (45.67%). Furthermore, 4 out of 10 (36.83%) acknowledged that these platforms could contribute to increased impulse spending among consumers.

 Table 7. What benefits do you associate with using cashless platforms? 

Convenience and speed101484.50
Better tracking of expenses53244.33
Increased security27022.50
Access to rewards or cashback37531.25
Reduced need of physical cash62552.08
Other/s2.17

*multiple choice

 Table 8. What are the disadvantages of using cashless payment platforms 

Privacy concerns60850.77
Increased impulse spending44236.83
Technical issues or outages79065.83
Fees associated with transactions54845.67
Lack of control over spending34929.08
Other/s433.58

*select all that apply

 Cashless payment platforms have become popular to the Dabawenyos. Because of the new and growing technology, its use has become easy and convenient. While this technology comes with benefits, there may be downsides to it too. So it is always good to be prudent in its use.