THE ADOPTION OF DIGITAL PAYMENT TRANSACTION OF MICRO BUSINESS IN NORTH CALOOCAN CITY

Abstract

This study examines the adoption of digital payment transactions in microbusinesses in North Caloocan City, highlighting both the benefits and challenges associated with this technological shift. The research explores how digital payments impact business operations, financial management, and customer transactions. It also evaluates the level of digital payment adoption among micro business owners and identifies factors that influence their decision to transition from traditional cash-based systems. By analyzing the advantages, such as increased efficiency and convenience, alongside the potential drawbacks, including security concerns and transaction fees, this study aims to provide insights into the role of digital payments in the growth and sustainability of microbusinesses in North Caloocan City. The study utilized a quantitative-descriptive research design to assess the adoption of digital payment transactions among microbusinesses in North Caloocan City. A census sampling technique was employed, ensuring that only microbusiness owners within the area were selected as participants. To analyze the collected data, statistical tools such as ranking, percentage and frequency distribution, weighted mean, and standard deviation were used. These methods allowed for a comprehensive interpretation of the survey results, providing valuable insights into the level of digital payment adoption, business owners’ perceptions, and the overall impact on their operations. The majority of microbusiness owners recognized the adoption of digital payment transactions as a significant factor in business growth and operational efficiency. They believed that digital payments streamline transactions, making payment processes more convenient and accessible. However, concerns were raised regarding security risks, transaction fees, and potential technical challenges that could arise. Despite these apprehensions, there was a strong consensus on the positive impact of digital payments on business development and sustainability. Business owners acknowledged that digital payment systems help them adapt to evolving market trends, enhance customer transaction experiences, and strengthen financial resilience—especially during economic disruptions like the COVID-19 pandemic. The study concludes that analyzing the adoption of digital payment transactions among microbusinesses in North Caloocan City has offered valuable insights into prevailing trends, benefits, and challenges. The findings highlight the need for targeted support, including educational initiatives, training programs, and accessible resources to enhance awareness of digital payment solutions. Additionally, improving internet connectivity, implementing risk mitigation measures, and strengthening security protocols are essential steps to empower micro businesses. By addressing these concerns, business owners can fully leverage digital transactions, fostering growth, efficiency, and long-term sustainability in an increasingly digital economy.