The Financial Risks of Cashless Payment Methods Among SMEs in Nagcarlan Laguna: A Basis for a Proposed Financial Security Campaign

• Author(s): Capistrano, Rovic P. ; Macatuay, Joan Dane C. ; Paruan, Ashly Marie T.; Rosario, Genalyn C.; Alano, Kaye V. ; Araw, Mary Ann Joy M.; Darang, Angelalyn L.; Meraña, Monica Anne ; Nazario, Katleen A.; Velante, Zyriel Anne; Dr. Norayda M. Dimaculangan
• Paper ID: 1705763
• Page: 150-162
• Published Date: 09-05-2024
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 7 Issue 11 May-2024

Abstract

Numerous books, articles, and research have been written about the effects of cashless payments on customer behavior. However, fewer research has been done to evaluate how the aforementioned payment method affects a company's financial risks. This study aimed to determine the relationship between business profile and financial risks of cashless payment methods among Small and Medium Enterprises in Nagcarlan, Laguna. The study also investigated the relationship between the business profile of SMEs and the financial risks of cashless payment methods. A descriptive-correlational method of research in a quantitative design was used to determine correlation between variables. The instrument was validated through a Cronbach alpha, resulted in 0.90, 0.73 and 0.72 which indicates a good and acceptable index of reliability. Survey questionnaires served as a tool to draw facts about the relationship between business profile and financial risks in the SMEs. Based on the research findings, most of the business profiles (years of operation, number of employees, and monthly income) does not correlate to the financial risks of using cashless payment methods, particularly fraudulent transactions and liquidity risks. Hence, only the type of cashless payment methods correlates to the financial risks of cashless payment methods. The researchers proposed an action plan primarily focused on various campaign that will serve as an awareness to the small and medium enterprises. The study will provide valuable insights for small and medium-sized enterprises and serve as the basis for strategies to reduce the financial risks associated with cashless payment methods. This research opens avenues for future research by conducting an analysis on a particular cashless payment method regarding its weaknesses and cyber security aspects to use as a basis for creating strong security measures.

Keywords

SMEs, financial risks, cashless payment methods, financial security, business profile, years of operation, number of employees, estimated income, gcash, paymaya, bank transfer, paypal, debit cards, fraudulent transactions, security risk, liquidity risk

Citations

IRE Journals:
Capistrano, Rovic P. , Macatuay, Joan Dane C. , Paruan, Ashly Marie T.; Rosario, Genalyn C.; Alano, Kaye V. , Araw, Mary Ann Joy M.; Darang, Angelalyn L.; Meraña, Monica Anne , Nazario, Katleen A.; Velante, Zyriel Anne; Dr. Norayda M. Dimaculangan "The Financial Risks of Cashless Payment Methods Among SMEs in Nagcarlan Laguna: A Basis for a Proposed Financial Security Campaign" Iconic Research And Engineering Journals Volume 7 Issue 11 2024 Page 150-162

IEEE:
Capistrano, Rovic P. , Macatuay, Joan Dane C. , Paruan, Ashly Marie T.; Rosario, Genalyn C.; Alano, Kaye V. , Araw, Mary Ann Joy M.; Darang, Angelalyn L.; Meraña, Monica Anne , Nazario, Katleen A.; Velante, Zyriel Anne; Dr. Norayda M. Dimaculangan "The Financial Risks of Cashless Payment Methods Among SMEs in Nagcarlan Laguna: A Basis for a Proposed Financial Security Campaign" Iconic Research And Engineering Journals, 7(11)