Factors Affecting BSP Employees’ Preference Among Digital
Payment Channels
Gian Renzo L. Logmao
Bangko Sentral ng Pilipinas
2022
ABSTRACT
The innovation and use of the internet and mobile phones have led to the development of
more payment modes and channels. Despite said developments, until now there is a lack of
research providing analysis of factors affecting the use, adoption, and acceptance of digital
payment methods. This study aims to address this gap by providing an analysis of results
from the data gathered from Bangko Sentral ng Pilipinas (BSP) Employees. The results
highlight that BSP employees largely accepted and adopted the use of digital payment
channels, particularly cashless and digital payment systems such as E-Wallets. Results also
showed that among the factors enumerated in the survey, convenience and ease of payment
are most considered by BSP employees when choosing a digital payment channel for their
transactions. Satisfaction level results also show that there is still room for improvement in
the digital payment
Keywords: Factors, BSP employees, digital payment channels, satisfaction
INTRODUCTION
The Philippines continues to expand its digital adoption. The recent COVID-19 pandemic has
also catalyzed the shift in awareness and has provided the necessary push for more
consumers, businesses and the government, to use digital payments as the country was
compelled to implement necessary health and social-distancing protocols. As the
acceptance and adoption of digital payment channels grow, so do the features of these
systems and applications which are now the factors being considered when choosing a
digital payment channel. The researcher would like to identify what factors are important for
BSP employees to adopt such channels so that developers of digital payment services can
provide better systems.
REVIEW OF RELATED LITERATURE
In the Philippines, cash is still widely used as means of payment. Digital platforms for
payments will find it challenging to be widely used in transactions. The number of unbanked
Filipinos is still high since most still prefer the tangibility of physical money (Raon et al., 2021).
The rise of mobile and internet technology has significantly impacted people’s daily lives and
behavior. Digital payment continues to spread rapidly, gaining more importance. Although
there has been a remarkable increase in the number of empirical studies in recent years, very
few reviews have been conducted in this area. (Sahi et al., 2021) and as the innovation and
development of these payment systems go on, so are the risks involved. Perceived risk can
negatively influence mobile payment users’ perceived trust and customer satisfaction.
Consumers are also concerned with the risk of lost or stolen payment resulting in their
financial loss (Hampshire, 2017). It is important to know how factors or features of these
payment systems affect the preference of users in choosing a channel for their transactions
for the developers of these systems to deliver far better, faster, and secure digital payment
channels.
CONCEPTUAL MAP AND FRAMEWORK
BSP EMPLOYEES
STATEMENT OF THE PROBLEM
The researcher would like to identify the factors that BSP employees consider when
choosing a digital payment channel for their transactions. Specific questions are as follows:
1. How the respondents may be classified:
- Gender
- Generation
- Work experience/Length of service
- Nature of work
- Educational attainment
2. What are the available payment modes in the Philippines?
3. What are the available digital payment channels in the Philippines?
4. What factors do the respondents consider when choosing among the available
digital payment channels in the Philippines?
LIMITATIONS
The researcher focused the scope on BSP employees, particularly in the Office of the
Secretary, Monetary Board (OSMB). For data gathering, a small sample size of 10 out of 24
employees of said office have been chosen to answer the survey questionnaire due to time
constraints.
EXPECTED OUTCOME
BSP employees consider factors such as convenience, ease of payment, and
perceived security when choosing a digital payment channel for their transactions.
METHODOLOGY
The researcher utilized a Descriptive Quantitative Research Design to identify what factors
affect BSP employees’ preference in choosing a digital payment channel.
A survey questionnaire was distributed to 10 respondents in the OSMB, selected through
random sampling and convenience sampling. The questionnaire consists of demographic
questions and scale analysis questions to measure the weight of consideration BSP
employees put on each factor.
RESULTS
Out of the 10 respondents, 40% are 41 to 50 years old and 30% are 31 to 40 years old and 30
years old and below, respectively. In terms of work experience in number of years, 50% have
5 to 10 years of experience, 40% have 15 years, 1 month to 20 years of experience, and 1% have
below 5 years of experience. In educational attainment, 60% have bachelor’s degree while
40% have master’s/graduate degree.
Fig. 1. Age/Generation
0%
30%
40%
30%
61 and up
51-60 yo
41-50 yo
31-40 yo
30 and below
Fig. 2. Work Experience
10%0%
40%
50%
0%
More than 20 years
15 years, 1 month-20 years
10 years, 1 month-15 years
5-10 years
Below 5 years
Fig. 3. Educational Attainment
0%
40%
60%
Doctorate/
Postgraduate
Master's/Graduate
Bachelor's Degree
Undergraduate/
Vocational
In preferred payment mode, cashless/digital payment ranked first among listed payment
modes. While E-wallets ranked first in the preferred digital payment channel. Among the
factors considered, convenience ranked first among other factors.
FIG. 4. PREFERRED PAYMENT MODES
Cash
30%
Checks 0%
70%
20%
Gift Checks/Vouchers 0%
0%
40%
30%
30%
40%
Over-the-Counter Bank/Non-bank 0% 10%
30%
20%
10%
Cashless/Digital Payment
0%
0%
40%
70%
20%
0%
10% 0%
Others 0%
0%
10%
Rank 1
20%
Rank 2
30%
Rank 3
40%
50%
Rank 4
Rank 5
60%
70%
80%
90%
100%
Rank 6
RANKING:
1. Cashless/Digital Payment
2. Cash
3. Gift Checks/Vouchers and Over-the-Counter Bank/Non-Bank
4. Checks
FIG. 5. PREFERRED DIGITAL PAYMENT CHANNEL
E-wallets
50%
Credit/Debit/…0%
40%
Online Bank Transfer and Wire Transfer
40%
30%
40%
ATM
10%
10%
10% 0%
10%
10% 0%
30%
20%
20%
50%
Cryptocurrency 0%
0%
0%
80%
0%
Others 0%
0%
Rank 1
10%
Rank 2
20%
Rank 3
RANKING:
1. E-Wallets
2. Credit/Debit/Virtual Cash
3. Online Bank Transfer/Wire Transfer
4. ATM
5. Cryprocurrency
30%
40%
Rank 4
50%
Rank 5
60%
Rank 6
70%
80%
90%
100%
FIG. 6. PREFERRED DIGITAL PAYMENT CHANNEL
E-wallets 10%
0%
Credit/Debit/… 10%
Online Bank Transfer and Wire Transfer
30%
20%
30%
ATM
40%
50%
30%
40%
0%
Rank 1
Rank 2
Rank 3
10%
Rank 4
Rank 5
10%
0%
30%
40%
40%
40%
0%
30%
20%
Rank 6
30%
40%
Rank 1
50%
Rank 2
60%
Rank 3
10%
0%
30%
10%
30%
0% 20% 0%
10%10% 20%
40%
Others 0% 10% 0%
50%
10%10%10%
0%
50%
Cryptocurrency 0%
0%
10%
0%
20% 0%
50%
0%
80%
0%
40%
0%
70%
Rank 4
80%
90%
Rank 5
100%
Rank 6
RANKING:
1. Convenience
2. Perceived ease of payment
3. Perceived speed
4. Perceived security
5. Traceability
6. Anonymity
In satisfaction levels, 50% are satisfied with the current digital payments systems available
while 40% are very satisfied and 10% are moderately satisfied.
SATISFACTION LEVEL
60%
50%
50%
40%
40%
30%
20%
10%
10%
0%
0%
0%
Very satisfied
Moderately satisfied
Less satisfied
Not satisfied
Satisfied
DISCUSSION AND CONCLUSION
Based on data gathered and processed, most BSP employees use cashless/digital payment
modes for transactions and their preferred channel is through e-wallets. Convenience is the
factor most considered by BSP employees when choosing a digital payment channel for their
transactions. There is interconnectedness in the results as they can be related because the
main business model of payment systems is to provide convenience for its users.
RECOMMENDATIONS
There is still lack of research on topics related to digital payment channels with it being a
new service in the financial system. Further research can be done on the security aspect of
said payment systems because as technology develops rapidly, so are the risks involved in
the system.
REFERENCES
Raon et al., (2021). Adoption of E-Payment Systems in the Philippines
Sahi et al. (2021). The Evolving Research of Customer Adoption of Digital Payment: Learning
from Content and Statistical Analysis of the Literature
Hampshire, C. (2017). A mixed methods empirical exploration of UK consumer perceptions of
trust, risk and usefulness of mobile payments.
APPENDICES
Survey Questionnaire
Digital Payment Satisfaction Questionnaire
This questionnaire is designed to learn about your preference and satisfaction in the digital payment system.
Please answer the questions by ticking (for multiple choice) or numbering (for ranking). There is no right or wrong
answer and this is for research exercise only.
Q1. Gender: ___ Male ___ Female
___ Prefer not to say
Q2. Age:
___ 30 and below
___ 31-40 yo
___ 41-50yo
___51-60 yo
___ 61 and up
Q3. Work Experience:
___ below 5yrs
___ 5-10yrs
___ 10yrs,1mo-15yrs
__15yrs,1mo -20yrs
___ more than 20yrs
Q4. Nature of Work:
___ related to Finance/Economy
___ not related to Finance/Economy
Q5. Educational Attainment:
___ Undergraduate/Vocational
___ Bachelor’s Degree
___ Masters/Graduate
___ Doctorate/Postgraduate
Q6. Rank the payment modes according to your preference
___ Cash
___ Checks
___ Gift Checks/Vouchers
___ Over-the-counter Bank/Non-Bank
___ Cashless/Digital Payment
___ Others (specify)__________
Q7. Rank the digital payment channels according to your preference
___
E-wallets (i.e. GCash, PayMaya, PayMongo, Paypal)
___
Credit/Debit/Virtual Cash Cards (i.e. Visa, MasterCard)
___
Online Bank Transfer and Wire Transfer
___
ATM (i.e. Bancnet)
___
Cryptocurrency
___
Others (specify) _____________
Q8. Rank the factors why you are using digital payment channels
___ Perceived Security
___ Perceived Speed
___ Perceived Ease of Payment
___ Convenience
___ Anonymity
___ Traceability
Q9. How satisfied are you with the Digital Payment System?
___ Very Satisfied
___ Satisfied
___ Moderately Satisfied
___ Less Satisfied
___ Not Satisfied
Survey Results
Demographics:
Gender
Nature of Work
Related to
7
finance/economy
Not related to
3
finance/economy
10
3
Male
7
Female
10
Age
Educational Attainment
Doctorate/
Postgraduate
0
61 and up
0
51-60 yo
41-50 yo
Master's/Graduate
Bachelor's Degree
4
Undergraduate/
Vocational
3
31-40 yo
30 and below
3
Work Experience
0
15 years, 1
month-20 years
4
10 years, 1
month-15 years
5-10 years
Below 5 years
0
5
1
10
Preferences:
Payment Modes
Cash
Checks
Gift checks/
vouchers
Over-the-counter bank/
non-bank
Cashless/
digital payment
Others
Digital Payment Channels
4
6
0
10
10
More than 20
years
0
Average
1.70
3.70
Ranking
2
5
3.50
3
3.50
3
1.40
1
0
Average
Ranking
E-wallets
Credit/debit/virtual cash
Online bank transfer/wire
transfer
ATM
Cryptocurrency
Others
Factors
Perceived security
Perceived speed
Perceived ease of payment
Convenience
Anonymity
Traceability
Satisfaction Level
Very satisfied
Satisfied
Moderately satisfied
Less satisfied
Not satisfied
1.6
2.1
1
2
2.3
3
2.9
4
0
4
5
Average
2.6
2.4
2.1
1.9
4.4
Ranking
4
3
2
1
6
4.1
5
Votes
Ranking
4
5
1
0
0
2
3
1
DATA CODING AND TABULATION
R
Numerical Values
Meaning
Respondent
G
Gender
A
Age
Codes
WE
Work Experience
NW
Nature of Work
EA
Educational Attainment
PM1
Cash
PM2
Checks
PM3
Gift Checks/Vouchers
PM4
PM5
Over-the-counter
bank/Non-bank
Cashless/Digital
Payment
PM6
Others
DP1
E- Wallets
DP2
DP3
DP4
Credit/Debit/Virtual
Cash Cards
Online Bank Transfer
and Wire Transfer
ATM
0
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
1
2
3
4
5
Male
Female
Prefer not to
say
61 and up
51-60 yo
41-50 yo
31-40 yo
30 and below
More than 20 yrs
15 yrs, 1mo-20 yrs
10 yrs,1mo -15
yrs
5-10 yrs
Below 5
years
Related to
finance/Economy
Not related to
finance/economy
Doctorate/Postgraduate
Master's/Graduate
Bachelor's
Degree
Undergraduate/vocational
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
DP5
Cryptocurrency
DP6
Others
F1
Perceived Security
F2
Perceived Speed
F3
Perceived Ease of
Payment
F4
Convenience
F5
Anonimity
F6
Traceability
S1
Satisfaction Level
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
No
Answer
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Very satisfied
Satisfied
Moderately
satisfied
Less satisfied
Not satisfied
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
Rank
6
R
1
2
3
4
5
6
7
8
9
10
R
1
2
3
4
5
6
7
8
9
10
G
1
2
1
1
2
2
2
2
2
2
A
3
4
5
5
5
4
3
3
4
3
DP1
2
2
1
2
1
3
2
1
1
1
DP2
0
0
2
3
2
2
4
3
2
3
WE
2
2
4
4
5
4
2
2
4
4
DP3
1
1
3
4
3
1
1
2
3
4
NW
1
1
1
1
1
1
2
2
2
1
DP4
0
3
4
1
4
4
3
4
4
2
EA
3
2
3
3
3
2
2
2
3
3
DP5
0
0
5
5
5
5
5
5
5
5
PM1
1
2
2
1
2
2
2
2
1
2
DP6
0
0
0
0
0
0
0
0
0
0
PM2
0
4
5
4
4
4
3
5
5
3
PM3
0
3
4
5
3
3
4
4
4
5
PM4
0
5
3
2
5
5
5
3
3
4
PM5
2
1
1
3
1
1
1
1
2
1
PM6
0
0
0
0
0
0
0
0
0
0
R
1
2
3
4
5
6
7
8
9
10
F1
0
0
1
3
3
4
4
3
4
4
F2
0
3
2
4
1
3
3
2
3
3
F3
0
2
3
5
4
2
1
1
1
2
F4
1
1
4
1
2
1
2
4
2
1
F5
0
0
6
6
5
6
6
5
5
5
F6
0
0
5
2
6
5
5
6
6
6
S1
1
2
2
2
1
1
2
1
3
2
Over-theCounter
Bank/Nonbank
Cashless/Digital
Payment
Others
Rank
Cash
Checks
Gift
Checks/Vouchers
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
30%
70%
0%
0%
0%
0%
0%
0%
20%
40%
30%
0%
0%
0%
30%
40%
20%
0%
0%
10%
30%
10%
40%
0%
70%
20%
10%
0%
0%
0%
0%
0%
0%
0%
0%
0%
TOTALS 100%
90%
90%
90%
100%
0%
Rank
Ewallets
Credit/Debit/
Virtual Cash
Cards
Online
Bank
Transfer
and
Wire
Transfer
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
50%
40%
10%
0%
0%
0%
0%
40%
30%
10%
0%
0%
40%
10%
30%
20%
0%
0%
10%
10%
20%
50%
0%
0%
0%
0%
0%
0%
80%
0%
0%
0%
0%
0%
0%
0%
TOTALS
100%
80%
100%
90%
80%
0%
Rank
Perceived
Security
Perceived
Speed
Perceived
Ease of
Payment
Convenience
Anonymity
Traceability
Rank 1
Rank 2
Rank 3
Rank 4
Rank 5
Rank 6
10%
0%
30%
40%
0%
0%
10%
20%
50%
10%
0%
0%
30%
30%
10%
10%
10%
0%
50%
30%
0%
20%
0%
0%
0%
0%
0%
0%
40%
40%
0%
10%
0%
0%
30%
40%
TOTALS
80%
90%
90%
100%
80%
80%
ATM
Cryptocurrency
Others
Satisfaction Level
Percentage
Very satisfied
Satisfied
Moderately
satisfied
Less satisfied
Not satisfied
40%
50%
TOTALS
100%
10%
0%
0%