E-payment adoption and financial performance of local food establishments: A correlational study

Abstract

Generally, this study determined the adoption of e-payments (e-payments) and its effect
on the financial performance of local food establishments in Laoag City, Ilocos Norte,
Philippines.

Using a descriptive-correlational research design, data were collected from 22 local
food establishments through a structured survey questionnaire and analyzed using
statistical tools such as frequency and percentage, weighted mean, Mann–Whitney U
test , Spearman’s rho, , and Pearson-r correlation.

Findings revealed that most local food establishments in Laoag City are sole
proprietorships, relatively young, and operating with varied capitalization and sales
levels. Credit and debit cards were the most commonly used e-payment channels,
followed by GCash and bank transfers. The extent of e-payment effects was rated high,
with perceived usefulness emerging as the strongest dimension, followed by ease of use
and effects on revenues. Challenges were found to be moderately serious, primarily
involving unstable internet connections and system errors. The level of financial
performance was also rated high, indicating that e-payment adoption contributes
positively to sales, profitability, and return on investment. Correlation results showed
no significant relationship between business profile and e-payment effects. However, a
significant negative relationship was found between e-payment effects and challenges.
Likewise, business profile showed no significant relationship with challenges. The
extent of e-payment effects demonstrated a significant positive relationship with
financial performance, while challenges were negatively related to financial
performance.

The study concluded that the adoption of e-payments among local food establishments
in Laoag City is effective and yields a high level of financial performance. It
underscores the importance of improving internet stability, system reliability, and
digital literacy to further enhance operational efficiency and customer satisfaction.
It is recommended that food establishment owners strengthen e-payment
implementation, e-payment providers improve system support, and government
agencies promote digital infrastructure development. Future researchers may explore epayment adoption in other sectors and investigate its long-term impacts on business
growth and customer loyalty