Readiness of MSEs for Mobile Cashless Payment: An Emerging Market City in the Philippines

This research attempts to gauge the technological readiness (TR) and adoption readiness (AR) for mobile cashless payments (MCP) among micro and small enterprises (MSEs) in the city of San Fernando, La Union, Philippines. Data were collected using a researcher-made questionnaire that was administered personally to the owners or managers of 81 MSEs in the drugstore and grocery sectors that have been operational for at least 5 years. The data collected were analyzed using descriptive correlational and causal-comparative analyses to establish insights on TR and AR of MSEs' overall readiness. Although MSEs have a more positive attitude to adoption readiness, in particular to mobile payment regulations, uncertainty regarding customer acceptance and traditional practices slow down adoption. The study found a significant relationship between TR and AR, demonstrating the complexity of the interplay of factors that drive mobile payment adoption. It was also found that there is no significant difference in the overall readiness of MSEs in terms of business type, however, a significant difference is observed in terms of business size. This demand for targeted interventions beyond infrastructure development is echoed in skills development, public awareness campaigns, and the creation of business environment that is technology embracing. This research bridges the notable literature gap on the exploration of the city’s mobile payment adoption.