USAGE OF E-WALLET AMONG AMBULANT VENDORS IN DAVAO CITY

Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [115] USAGE OF E-WALLET AMONG AMBULANT VENDORS IN DAVAO CITY Gaudencio G. Abellanosa Professor VI, College of Development Management, University of Southeastern Philippines, Philippines Alreich Bryan S. Bustillo Shinnen Johann N. Cahandig Lyneth Joy A. Dorado Brenda Lotte R. Oberio Graduate Students, College of Development Management, University of Southeastern Philippines, Philippines ABSTRACT Digital financial technologies are continually being adopted in greater amounts such as business practices even among the smallest and informal vendors. This study provides the views of ambulant vendors in Davao City regarding the advantages, difficulties, and the overall situation related to e-wallets adoption in marketplaces. A total of 150 vendors participated in a survey consisting of 30 statements about convenience, security, financial management, and usage-related constraints. Data were analyzed using EFA to define the underlying dimensions influencing e-wallet adoption. The KMO test for measuring the sampling adequacy and Bartlett’s Test of Sphericity present 0.929 and χ² = 6095.810, p < .001, respectively, which indicate the appropriateness of the dataset for factor analysis. Two (2) factors were retained, explaining 78% of the total variance. The first factor refers to Positive Adoption and Usage, wherein the belief of vendors is that e-wallet is convenient, saves them time, is secure, and contributes to better customer engagement and more sales. The second factor pertains to Barrier and Challenges because very high costs of data, lack of technical knowledge, unstable internet service, and patronization of cash impede full usability. With this result, it would mean that though ambulant vendors are aware of the benefits they can derive from e-wallet, structural and technical constraints are still there. This calls for specific targeted interventions through training, digital literacy programs, and better conditions of digital infrastructure that would drive wider adoption with greater equity in access to financial services. These are useful parameters upon which appropriate changes or modifications may be made by policymakers, financial institutions, and LGUs themselves to improve the involvement of micro-enterprise establishments in the emergent digital economy. Keywords: e-wallet adoption, digital payments, ambulant vendors, financial inclusion, Davao City INTRODUCTION In Southeast Asia, there has been tremendous growth in the use of digital payment technologies, particularly within the Philippines. There has been a sharp rise in the usage of e-wallets since the onset of COVID-19. As stated by the Bangko Sentral ng Pilipinas, the percentage of digital retail payments made in 2022 was 42.1% and has continued to rise into 2023, primarily as a result of mobile wallets. This means that both formal and informal businesses, including street vendors who traditionally accept only cash payments, now have access to new opportunities as a result of increased usage of digital payment technologies. As mobile or street-based retailers operating in the public markets, street corners, and sidewalks, ambulant vendors also play a very important economic role in the informal economy of the Philippines. Innovations in mobile payments could further enhance the poor and marginalized population's financial inclusivity, a fact corroborated by researchers (Devi et al., 2025). E-wallets could also significantly reduce the risks in cash handling, operationalize business operations more rationally, and increase customer access, particularly among the younger generation of buyers who are savvier with technology (Mew, 2021). Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [116] The digital financial tools sector still struggles with many micro-entrepreneurs because of structural and perceptual barriers, yet this group of workers is still growing. Low digital literacy, for instance, is one of these barriers, which makes it hard for people to use mobile payment systems; the high transaction costs that are imposed on these people further reduce their already small profit margin; and the poor internet signal that affects the speed of the transactions are some of the examples of those limitations. Breaches of security leading to identity theft, and general fraud are still among the main worries (Irianto, 2025; Jimenez et al., 2024). It is possible that different categories of informal workers will have different perceptions about these obstacles and, hence, the main goal of this research is to enrich the existing literature with its exclusive insights into how these factors are differently impacting the operations, decision-making, and buying habits of street vendors who are working in highly entrepreneurial but often under-resourced conditions. This way, the study will not only expand the knowledge base on micro-entrepreneurs but also help in encouraging the growth of this sector of the economy and thus making them more digital-friendly. OBJECTIVES This study aims to achieve the following: 1) Identify the underlying factors of adopting the e-wallet usage among ambulant vendors in selected marketplaces in the city; and 2) Develop a framework that discusses the adoption of e-wallet among ambulant vendors in Davao City. METHODOLOGY Quantitative research methods were utilized by the researchers, specifically the Exploratory Factor Analysis (EFA). A survey questionnaire was employed to collect data for this study which consists of 30 statements. The Likert scale was used to obtain the perceptions and attitudes of the respondents. The 30-item questionnaire was formulated by the researchers and given validation by the instructor of this course. Additionally, the researchers utilized a purposive sampling technique to determine the respondents which helped in attaining the objectives of this paper. A total of one hundred fifty (150) respondents particularly, ambulant vendors in selected markets within the city were identified to provide data for this study. This study was also conducted within Davao City as part of the course’s requirement. The data gathering was conducted in selected marketplaces within the city. Data analysis was done using the Statistical Package for the Social Sciences software. Analysis began with preliminary analyses, such as the examination of variable correlations and sampling adequacy by the KaiserMeyer-Olkin measure and Bartlett's Test of Sphericity. Following the assurance of data adequacy, Exploratory Factor Analysis was conducted using the extraction method of Principal Component Analysis with varimax rotation to identify the underlying factors that influence e-wallet usage among ambulant vendors. The EFA factor loadings were interpreted to identify and name the main constructs that best described response patterns. Finally, the researcher conducted a descriptive analysis to summarize the data on central tendencies, response distribution, and general trends in vendor perceptions and experiences relative to e-wallet adoption. RESULTS AND DISCUSSION This chapter presents the result of the exploratory factor analysis as well as the interpretation and analysis of the respective results. Tables were used to illustrate findings of the study and the discussion and interpretation of tabular and graphical data were made for easy understanding Sampling Adequacy Requirement. To ensure that the construct is suitable for factor analysis, two sets were conducted: the KaiserMeyerOlkin Measure (KMO) of Sampling Adequacy and Barlett’s test of sphericity. Table 1 shows that the KMO value is 0.929 and this indicates excellent sampling adequacy, and with an approximate chi square of 6095.8 and a p value of 0.000 confirms that factor analysis is appropriate, while Bartlett’s Test of Sphericity (χ² = 6095.810, p < .001) confirmed significant correlations among items, validating factor extraction. Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .929 Bartlett's Test of Sphericity Approx. Chi-Square 6095.8 10 df 435 Sig. 0.000 Table 1. KMO and Bartlett’s Test of Sphericity Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [117] Based on the preliminary analysis, it shows that the items in the tool are appropriate and sufficient for factor extraction and therefore prepared for the factor analysis. Total Variance Explained. Table 2 displays the dimensions extracted along with their corresponding initial Eigenvalues, percentage of the total variance, and cumulative percentage. The criteria used resulted in two dimensions being obtained. Further various techniques of factor analysis begin by identifying a group of factors from a given dataset. These factors are typically orthogonal and arranged on order of how much variance of the original data they account for. Usually only few factors are deemed useful for further analysis, while the others are considered irrelevant or noise, possibly due to the measurement errors (Abdi, 2013). Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings Total % of Variance Cumulativ e % Total % of Variance Cumulativ e % Total % of Variance Cumulativ e % 1 16.177 53.924 53.924 16.177 53.924 53.924 15.708 52.359 52.359 2 6.117 20.389 74.313 6.117 20.389 74.313 6.298 20.994 73.354 3 1.195 3.983 78.296 1.195 3.983 78.296 1.483 4.942 78.296 Extraction Method: Principal Component Analysis. Table 2. Total Variance Explained Table 2 shows the Total Variance Explained, indicating the contribution of each component to the total information in the dataset. According to this table, the highest contribution belongs to the first component with an eigenvalue of 16.177, which explains 53.924 percent of the total variance. This means that over half of the data's variability is captured by the first component. The second component increases the explained variance by 20.389 percent for a cumulative of 74.313 percent, while the third adds 3.983 percent for a total of 78.296 percent explained. The important thing to note here is that only the first three components have eigenvalues greater than 1, which follows Kaiser's criterion on the number of components worth retaining in the analysis. This finding is supported by the results of the rotation, as the rotated sums of squared loadings still show these three components capture most of the meaningful variance, with slight adjustments to improve clarity and interpretability. In sum, the result in Table 2 reflects that the most significant patterns in the dataset are contained in the first three components, thus suitable for further analysis and discussion in succeeding sections. Figure 1. Scree Plot Rotated Component Matrix with 30 Attributes. The result of the Rotated Component Matrix provided a three-factor solution for the 30 attributes of e-wallet usage in Davao City among ambulant vendors. Following PCA with Varimax rotation, the items naturally fell into three coherent dimensions, each representing a different facet of vendors' perception toward e-wallet adoption. Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [118] Since each statement showed loading values that were acceptable in at least one component, the analysis retained all 30 items. Though a few items had minor cross-loading, their highest loading still belonged to their corresponding factor. No items were removed based on low commonalities since all the variables met the minimum threshold for inclusion Rotated Component Matrix with Grouped Attributes Perceived Benefits. Table 2 presents a rotated matrix with grouped attributes under the theme Perceived Benefits with 19 items. These factors are associated with the following items such as It eliminates the risk of receiving counterfeit money from customers, with the factor loading of (0.937); I can easily pay my suppliers or other bills directly from my e-wallet, with the factor loading of (0.934); I no longer need to spend time sorting, counting, and securing large amounts of small bills and coins with the factor loading of (0.933); I can attract younger, tech-savvy customers by accepting e-wallets with the factor loading of (0.926); Receiving payments directly into my account allows me to pack up and leave my vending location more quickly and safely with the factor loading of (0.925); E-wallet transactions are faster than cash transactions with the factor loading of (0.919); It is easier to provide exact change to customers with e-wallets with the factor loading of (0.911); It helps me build trust with a wider customer base, as transactions are transparent and recorded with the factor loading of (0.91); It is more hygienic than handling physical cash with the factor loading of (0.906); The QR code for payment acts as a simple and professional-looking brand identifier for my stall with the factor loading of (0.906); I can easily accept payments from customers who do not carry cash with the factor loading of (0.895); The ability to use the app in my local language makes it easy for me to adopt with the factor loading of (0.892); It helps me keep a better digital record of my sales with the factor loading of (0.891); Customers tend to spend more when using e-wallets compared to cash with the factor loading of (0.878); Accepting e-wallets helps me attract more customers with the factor loading of (0.877); My money is secure in the app even if my physical belongings are lost or stolen with the factor loading of (0.875); Using E-wallet reduces the risk of losing money to theft with the factor loading of (0.875); Using E-wallet is more convenient for me as a vendor with the factor loading of (0.872); Accepting e-wallets has directly increased my overall sales revenue with the factor loading of (0.857). Dimension Item Attributes Factor Score Perceived Benefits 18 It eliminates the risk of receiving counterfeit money from customers. 0.937 9 I can easily pay my suppliers or other bills directly from my e-wallet. 0.934 12 I no longer need to spend time sorting, counting, and securing large amounts of small bills and coins. 0.933 7 I can attract younger, tech-savvy customers by accepting e-wallets. 0.926 16 Receiving payments directly into my account allows me to pack up and leave my vending location more quickly and safely. 0.925 2 E-wallet transactions are faster than cash transactions. 0.919 10 It is easier to provide exact change to customers with e-wallets. 0.911 15 It helps me build trust with a wider customer base, as transactions are transparent and recorded. 0.91 6 It is more hygienic than handling physical cash. 0.906 19 The QR code for payment acts as a simple and professional-looking brand identifier for my stall. 0.906 13 I can easily accept payments from customers who do not carry cash. 0.895 14 The ability to use the app in my local language makes it easy for me to adopt. 0.892 5 It helps me keep a better digital record of my sales. 0.891 8 Customers tend to spend more when using e-wallets compared to cash. 0.878 1 Accepting e-wallets helps me attract more customers. 0.877 Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [119] 11 My money is secure in the app even if my physical belongings are lost or stolen. 0.875 4 Using E-wallet reduces the risk of losing money to theft. 0.875 3 Using E-wallet is more convenient for me as a vendor. 0.872 17 Accepting e-wallets has directly increased my overall sales revenue. 0.857 Table 2. Rotated Component Matrix of Perceived Benefits Attributes Ambulant vendors offer their customers better and faster service, handle payments safely, greatly reduce cash handling, expose themselves to much lower counterfeit risks, and significantly decrease the risk of theft. The second benefit of using an e-wallet is related to convenience. All benefits related to convenience, such as quicker transactions, the ability to provide change easily, and an increase in the number of customers served via e-wallets, are so closely tied to security that it is impossible to separate them. At a higher level, these operational benefits relate to broader business outcomes, including the attraction of technology-friendly customers, enhanced credibility of the vendor through transparent transactions, and overall sales revenue increase. All these items together show very effectively that perceived benefits are not isolated, stand-alone features but an integrated value system wherein efficiency supports customer trust, which in turn drives better customer reach and business growth. Consistently high factor loadings affirm this cohesive perception among vendors that ewallet usage enhances several dimensions of their vending activities all at once. The existing literature has consistently demonstrated the positive effects of electronic wallet technology on micro and small enterprises. According to numerous studies, electronic wallet technology increases financial security by reducing the risks associated with physical cash handling and also increases transaction transparency through a documented transaction history. Kumar & Bansal (2023), Rahman, Abdul Chibinda & Mendy (2021). In addition, it has been shown that the increased preferences for cashless transactions resulted in increased levels of customer satisfaction and increased consumer spending patterns by providing consumers with greater ease and less friction in the payment process. Hapsari & Wibowo (2022). There is a continuing trend from earlier studies regarding digital payment methods improving operational efficiency and performance within business. Wei, Luz & Livio (2022), and Mew (2021). The current research findings support this and demonstrate that the perceived advantages of using e-wallets for ambulatory vendors in Davao City represent larger-scale trends where e-wallets enhance operational efficiencies, improve customer engagement, and assist businesses in being sustainable. Barriers and Concerns. Table 3 presents a rotated matrix with grouped attributes under the theme "Barriers and Concerns," comprising 10 items. These factors are associated with the following items such as The instability of internet connection in my area is a problem with the factor loading of (0.787); Withdrawing cash from my e-wallet is inconvenient or costly, with the factor loading of (0.784); I am worried about the security of my money and potential fraud with the factor loading of (0.757); I lack the knowledge on how to use the e-wallet app for my business with the factor loading of (0.753); The cost of data/ mobile internet to process transactions is too high with the factor loading of (0.75); I am concerned about making a mistake (e.g., entering wrong amount, sending to wrong person) with the factor loading of (0.735); I am concerned about transaction fees and costs with the factor loading of (0.718); Managing my earnings is simpler as everything is digital. I am not confident in my ability to troubleshoot problems during a transaction (e.g., failed payment) with the factor loading of (0.716); My customers prefer to pay in cash with the factor loading of (0.716); I prefer cash because it gives me immediate and full control over my money without any intermediary with the factor loading of (0.705). Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [120] Dimension Item Attributes Factor Score Barriers and Concerns 27 The instability of internet connection in my area is a problem. 0.787 24 Withdrawing cash from my e-wallet is inconvenient or costly. 0.784 28 I am worried about the security of my money and potential fraud. 0.757 25 I lack the knowledge on how to use the e-wallet app for my business. 0.753 21 The cost of data/ mobile internet to process transactions is too high. 0.75 23 I am concerned about making a mistake (e.g., entering wrong amount, sending to wrong person). 0.735 29 I am concerned about transaction fees and costs. 0.718 22 Managing my earnings is simpler as everything is digital. I am not confident in my ability to troubleshoot problems during a transaction (e.g., failed payment). 0.716 26 My customers prefer to pay in cash. 0.716 20 I prefer cash because it gives me immediate and full control over my money without any intermediary. 0.705 Table 3. Rotated Component Matrix of Barriers and Concerns Attributes A second major determinant termed as Barriers and Concerns displays the problems that are hindering the ewallet technology. It pinpoints the major points of the problem, like the high prices of mobile data, withdrawing cash getting inconvenient or being charged fees for it, lack of digital literacy among the people, and fear of making mistakes during the transaction. These matters relate to the results of earlier studies, which say that micro-entrepreneurs usually face cognitive, financial, and logistical barriers while adopting digital financial services (Jimenez et al., 2024; Irianto, 2025). These findings are in accordance with previous findings showing there are multiple dimensions to barriers being faced by micro-entrepreneurs wanting to use digital financial services. For example, according to Jimenez et al., the lack of reliable internet and the high cost of internet access remain the main structural impediments to this access for low and middle-income communities (2024). Similarly, Irianto notes that low levels of digital literacy, fears of making errors with transaction processing, and concerns regarding fraud contribute to the low levels of intention amongst small-scale vendors to adopt e-wallets (2025). The literature indicates that consumer preference for the use of cash and behavior of customers impact the ways informal sector workers adopt digital financial services (Lauer & Lyman, 2023; Arif & Rahman, 2022). Thus, similar to what is discussed here, the current findings indicate that barriers to adopting e-wallets are not only technical but also related to economic constraints, gaps in skills, and a long-established cultural reliance on cash. ACKNOWLEDGEMENT We extend our deepest gratitude to the respondents, particularly the ambulant vendors in Davao City, whose participation and cooperation greatly contributed to the success of this research. We also thank Dr. Gaudencio Abellanosa of College of Development Management – Graduate School, University of Southeastern Philippines, for his valuable assistance and constructive comments that significantly enhanced this manuscript. Our heartfelt appreciation as well goes to our families for their unwavering support and inspiration throughout the research process. Above all, we give thanks to God for His guidance and blessings that made this work possible. CONCLUSION The study, in its closing remarks, stated that despite the presence of various advantages of mobile wallets like faster transactions, greater convenience for customers, improved efficiency, and security, the mobile vendors in Davao City still have to deal with a number of obstacles before they could fully embrace e-wallets. Among these hurdles are cost of mobile data and withdrawal fees, limited tech knowledge, and ongoing troubles with networks and devices. This situation of digital financial services is analogous to the global ones where the latter Volume-09 Issue 12, December -2025 ISSN: 2456-9348 Impact Factor: 8.232 International Journal of Engineering Technology Research & Management (IJETRM) https://ijetrm.com/ IJETRM (http://ijetrm.com/) [121] claim high potential but are restricted by social, economic, and infrastructural challenges faced in the informal sector. The factor analysis revealed (EFA) two (2) set of factors that show that the views of vendor mobility concerning the adoption of mobile payments form themes that are both significant and coherent and are in line with those found in similar studies. The findings point out that e-wallets have a great potential to change the way vendors do business and that it would speed up the process of bringing in the unbanked customers but their adoption would require deep-rooted and guided support to get around the challenges that such a user group encounter. Especially in the Philippine context where market customers are physically equivalent to money when buying goods from the market and the process of learning how to operate cell phones and online apps is time-andmoney-consuming. REFERENCES [1] Bangko Sentral ng Pilipinas. (2023). Status of Digital Payments Transformation Roadmap. BSP. [2] Devi, R. S., Chatterjee, S., & Singh, R. (2025). 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