Implications of digital payments on market appreciation of MSMEs in Naga City

Digital payments are transforming the economic landscape of the Philippines, yet their effects on local economies, especially micro, small, and medium enterprises (MSMEs), are still under-researched. This study investigates the influence of digital payment systems on consumer behavior, spending power, and perceptions of MSMEs in Naga City. Using a descriptive-correlational research approach, the researchers surveyed 100 MSME consumers to identify factors affecting digital payment adoption. The findings indicate that demographic factors such as age, education, and income significantly influence the adoption of digital payments, with awareness also playing a crucial role in purchasing decisions. A notable relationship between digital payment adoption and consumer purchasing behavior across demographic segments was established. In response, the study proposes the "Empowering Digital Transactions" initiative, aimed at enhancing digital payment adoption over one year. This initiative includes a marketing strategy to increase awareness, provide incentives, and prepare businesses for effective digital transactions, fostering sustainable growth for both MSMEs and consumers in Naga City.