Exploring the Barriers of Non-Full Adoption of Cashless Payments among Retail Stores in Digos City: An Exploratory Factor Analysis
DOI:
https://doi.org/10.54536/ajbmi.v1i1.8669Keywords:
banking and government support limitations, cost-related and operational limitations, lack of training and customer preference, non-full adoption of cashless payments, barriers of cashless payment, retail stores, exploratory factor analysisAbstract
The rise in digital transactions has promoted the use of cashless payment systems. However, many retail outlets have not yet fully adopted, due to a variety of operational and institutional issues. This study was designed to identify the obstacles faced by retail stores in the non-full adoption of cashless payments and to formulate a factor structure to account for these obstacles in Digos City, Davao del Sur. The researcher used Exploratory Factor Analysis (EFA) to identify the dimensions that affect non-full adoption. A structured survey questionnaire was used to gather data from 258 retail owners/managers, and the data were analyzed using maximum-likelihood extraction (varimax rotation). Although six factors initially had eigenvalues greater than 1, a three-factor solution was retained after factor refinement based on the interpretability and coherence of the resulting factors. The findings revealed three significant factors affecting non-full adoption: Cost-Related and Operational Limitations, Banking and Government Support Limitations, and Lack of Training and Customer Preference.Among these, Cost-Related and Operational Limitations were the most influential factors, underscoring the impact of transaction fees, infrastructure costs, and system maintenance. There are also fewer financial institutions and government support, customer preferences, and inadequate staff training in the use of cashless payment methods that contribute to the partial adoption of cashless payment modes. The study concludes that despite the growing presence of cashless technologies, several barriers continue to hinder their full implementation in retail settings.
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Copyright (c) 2026 Claire Joy Delima, Althea Jenen Pecundo, Jhannen Mae Cabahug, Kathlene Mae Geloca (Author)
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