Assessing the Adoption of Cashless Payment System for Household Utilities – A Case among Selected Barangays in Albuera, Leyte, Philippines

The adoption of cashless payment systems for household utilities faces significant challenges, hindering efficient and modern financial transactions. This study assesses the adoption of cashless payment systems for household utilities in the municipality of Albuera, Leyte, Philippines. The research aimed to determine the factors influencing the adoption of cashless payment system among the residents. Utilizing a sample size of 246 participants, the study employs preference analysis and logit regression for statistical analysis, to evaluate responses from a 5-point Likert scale and open-ended questions. Stata was used for the descriptive statistics, preference analysis and regression analysis, while Smart PLS 4 facilitated the confirmatory factor analysis for the latent variables. The key findings reveal that effort expectancy, performance expectancy, social influence, and perceived risk significantly impact the adoption of cashless payment systems. Conversely, demographic variables such as age, gender, education level, income, as well as the past experience, internet access, and facilitating conditions do not show a significant effect. These highlights the critical factors that utility services, e-wallet providers and policymakers should consider to enhance the adoption of cashless payment methods in Albuera, Leyte. This study contributes to the broader understanding of technology adoption in the context of essential household utilities.