A Narrative Inquiry on The Perceptions of the Customers Regarding E-Wallet Utilization

A Narrative Inquiry on The Perceptions of the Customers Regarding E-Wallet Utilization

 Ezra F. Taclas

University of the Immaculate Conception, Philippines

DOI: https://dx.doi.org/10.47772/IJRISS.2024.801060

Received: 31 December 2023; Accepted: 03 January 2024; Published: 02 February 2024

ABSTRACT

The purpose of this study is to identify consumer concerns against the use of e-wallets in  Zamboanga City businesses and develop the best solutions to these issues. Discover new insights to share and educate other consumers, businesses, and small businesses. The researcher sought to produce results that would help reduce customer ignorance when using e-wallets.  The researcher chose phenomenology to analyze and understand complex issues, behaviors, and experiences by examining participants’ views, motivations, and meanings related to in-store transaction e-wallet activities.  Overall, descriptive qualitative research helps explore complex social phenomena, provides rich and thorough data, and provides a deep understanding of people’s perspectives and experiences.  Participants’ views on e-wallets reveal a variety of perspectives, balancing appreciation of their practicality with concerns about possible technical errors and security issues.  Participants’ concerns about e-wallet fees represent an important part of the uptake of digital payments. To build trust and drive adoption, it is important to balance convenience and security, ensure internet reliability, and consider the impact of fees on large e-wallet purchases.  Transparency, increased security, and user education are key to increasing the adoption of digital wallets. The findings on a balanced understanding of the use of e-wallets explore the factors that cause their resistance and identify the obstacles faced by e-wallets.

Key Words: digital payment, e-wallet, Zamboanga City, Philippines

INTRODUCTION

Consumers are increasingly using e-wallet applications to replace traditional payment methods (Bezhovski, 2016). A consumer does not need to carry money or a credit card when using an E-wallet. It allows users to make purchases more conveniently (Chelvarayan, 2022). Prior studies by Yap and Ng (2019) claimed that accessibility, personal privacy, and cultural pressure are factors that influence people to use an e-wallet application. Consumers think that an e-wallet adds a lot of convenience to their lives because technology allows them to complete tasks more quickly and conveniently.

In the national setting, e-commerce in the Philippines was identified as a growing business trend due to the widespread adoption of mobile technologies, particularly among young users (Vicente, 2014). Despite its growing popularity and acquiescence in the country, it was not resistant to common issues (Polloso, 2019). According to Segovia (2016), despite its rapid growth in the Philippines, e-commerce was lagging. One of the causes was a lack of infrastructure establishment, which commonly involved internet connectivity, electronic payments, the regulatory system, and logistical support. Internet issues were also identified as impediments to the further development of e-commerce in the Philippines. These internet issues included slow but expensive internet connections, internet hoaxes, a lack of internet connectivity, and internet hacking (Diangson, 2014).

Toral (2016) also stated that delivery delays were affecting the Philippines’ e-wallet industry. Various dissatisfied customers arose as a result of the distressing delivery delays caused by traffic, weather, and, most importantly, a scarcity of courier providers. Another issue confronting the Philippines’ e-wallet sector was reliability. Domingo (2017) reported that trust issues were impeding the development and growth of the country’s electronic commerce because people’s trust was still low. Most Filipinos were afraid of being duped or scammed by online shopping sites, which made them skeptical of electronic commerce. All whilst, problems arose in the local context, behind this expanding market. These issues include the slow internet connection that internet users have to contend with (Marcelo, 2018).

The technological advancement known as virtual money has grown significantly during the last few years. A digital wallet, often known as an “e-wallet,” has served as the best representation of this development. It is a contactless payment system that enables users to use their smartphones to make purchases at payment terminals. E-wallet applications are starting to replace traditional payment methods among consumers, it enables clients to engage in financial trading (Qasim, 2012). For frequent internet consumers, the form might be challenging to complete. Sending order forms with the same information on each. An e-wallet’s primary goal is to facilitate paperless financial transactions. It is not essential to repeat type payment card information and addresses for each product they purchase. It would be appreciated by the customers if this data could be handled automatically (Aparna, 2021).

However, where some areas are starting to see an uptick in success with certain locations beginning to experience an upsurge in success as well. Likewise, a study on  According to a recent study by Rolfe (2019), “Mobile wallets are still in early development in most countries The Adoption of E-Wallets on its Current Trends and Future Outlook by Al-Alawi (2021), findings show evidence that there is a high rate of people who intend to use e-Wallets, however, it solely considered the results and implications of the practical factors from the perspective of the consumer, ignoring the technical considerations from the service provider’s point of view that may also have an impact on the degree of adoption.

Hence, due to limited studies on consumers’ predicaments relative to their resistance to the utilization of E-wallets. The researcher intended to learn about the views and insights of consumers who resist e-wallets based on the customers’ shopping experiences in-store. The researcher wished to concentrate on the E-wallet’s convenience, and trustworthiness to the consumer. Furthermore, the researcher intended to produce results that may be useful in reducing the cluelessness of customers using E-wallets. The researcher also hoped to assist in-store business owners in developing beneficial strategies and techniques that will increase their sales using e-payment systems for their customer’s in-store purchases.

The purpose of this phenomenological study was to describe and understand the predicament of consumers relative to their resistance to the utilization of e-wallet for in-store purchases. The study aimed to identify the concerns of consumers who resist using e-wallets in business establishments in the city of Zamboanga to formulate the best solutions for these problems. Likewise, it hoped to discover new insights to share and enlighten other consumers, business establishments, SMEs, lawmakers, and to Zamboanga City’s local government itself.

METHODOLOGY.

This study is descriptive-qualitative research through phenomenological approach. True to many phenomenological studies, to describe and provide straightforward descriptions of experiences and perceptions of the participants, especially in settings where little is known about the matter being investigated (Sandelowski, 2010).

Descriptive qualitative research generates data that describe the ‘who, what, and where of events or experiences’ from a subjective perspective (Kim et al., 2017). This research methodology is most compatible conceptually with constructionism and critical theories that employ interpretative and naturalistic methodologies (Lincoln et al., 2017). The researcher chose phenomenology in order to analyze and comprehend the complicated issues, behaviors, and experiences by examining participants’ views, motives, and meanings attached to their activities about e-Wallets for in-store transactions.

This study involved 17 shoppers who are resistant users of E-wallets for in-store purchases using snowball sampling to reach the widest possible participants by referral particularly adult shoppers of selected department stores in selected malls in the City of Zamboanga. This population is hard to find because their activities are both private and undetermined. The data was gathered from them through an in-depth interview to effectively get primary data about the perceptions of customers on the resistance to e-wallets in Zamboanga City.

One of the advantages of this method is that it provides an excellent opportunity to gather precise data about what people believe and their motivations. If the researcher is well experienced, asking the right questions can help him/her collect /extract meaningful data. If they should need more information, the researcher should ask follow-up questions that will help them collect more information. The in-depth interview will be conducted face to face, which will give a better opportunity to read the respondents’ body language and match the responses.

Then, the participants’ responses were transcribed for the data analysis. The recordings were transcribed verbatim before data analysis could begin. The researcher also maintained a folder of “field notes” to complement audio recorded interviews. According to Alase (2016), the researcher shall provide a secure and reliable security system for all files collected and delete them after being transcribed to protect the participants. Analyzing the data then follows as it undergoes interpretation and will be presented in the following chapters.

In analyzing the data, it was subjected to phenomenological analysis and employed a combination of established techniques by qualitative research experts. In this section, the researcher used thematic analysis. In the writings of Maguire, M & Delahunt, B (2017) the thematic analysis is the process of identifying patterns or themes within qualitative data. Thematic analysis is a common approach for qualitative research as it provides simple interpretable and brief assimilations of emergent themes and patterns contained in the data for interpretation. Familiarization of data, generation of codes, themes searching, themes review, defining themes and making a report are among of the steps in thematic analysis.

In familiarization of data, the researcher thoroughly listened and read the transcripts and recordings and engaged into transcription for me to be familiarized and will give me deeper understanding about the aspects of the data gathered. After which, the analyst identified the initial codes that delivered significance and interest. Then codes were generated. The next step was theming. This involved interpretative analysis together with the identified codes. The data was sorted in accordance with major themes considering its relationship with the codes, sub-themes and themes.

The researcher employed several ethical considerations to ensure reliability of the study. Ethical aspects of the study were observed by implementing the following measures: the participants were informed of the extent, nature, and made sure that the participation in the interview was voluntary. The ten dimensions of research ethics includes social value, informed consent, vulnerability issues, risk-benefit ration, privacy and confidentiality of information, justice, transparency, qualification of the researcher, adequacy of facilities and community involvement.

RESULTS AND DISCUSSION

The participants of this research were consumers who are resistant to use e-wallets in Zamboanga City. There were 17 shoppers who are resistant users of E-wallets for in-store purchases. To conceal and protect the being and identity of the informants, each of them was given an alias. Out of the 17 respondents, 4 are males and 13 are females.

Major Themes

Technology-driven. The participants’ perception of e-wallets utilized for in-store purchases underscores their significant dependence on technology. This aligns with the participants’ perspective that e-wallets distinguish themselves by relying heavily on internet-based technology. Their belief in the entrenched digital infrastructure and technological foundation of e-wallets is clearly evident. This underscores the importance of internet connectivity, specific hardware requirements, and the presence of electronic applications as essential attributes that define e-wallets as a modern and cutting-edge approach to in-store payments.

E-wallets are perceived by the participants to be digital nature and reliance on cutting-edge technology for functionality and technology-driven. Participants also pointed out that since mobile devices are the only ones that allow e-wallets to function, consumers must possess and use them in order to conduct e-wallet transactions. E-wallets’ emphasis on mobile devices is in line with the general trend of payment methods increasingly being influenced by technological developments.

Facilitates online transactions. The participants stressed that e-wallets excel in enabling online payments and advanced digital methods. For quick, simple transactions, they depend on an internet connection. E-wallets are now an essential parts of today’s financial interactions. The Participants emphasized customers’ adaptability, allowing users to conveniently pay for goods, send money, and handle a variety of financial transactions even in in-store purchases. E-wallets may replace the need to carry physical cash with secure QR codes and PIN, combining the functionality of traditional wallets with modern technology. These are anticipated to play a bigger part in determining the future of financial transactions and e-commerce as technology develops.

Convenient and beneficial. The participants’ responses in the study consistently indicate that they perceive e-wallets as providing an elevated level of convenience, allowing transactions to be effortlessly completed with just a single click or through the straightforward process of scanning. Participants in the study consistently perceived e-wallets as useful for simple transactions, whether through a quick click or scanning. In times of need, especially when stores were closed or leaving the house wasn’t an option, e-wallets were lifesavers. Participants acknowledged the significance of e-wallets and their accessibility, making them a practical and effective payment method that made customers’ lives easier, despite the need for caution due to data exposure.

Slow internet reduces its dependency. The participants disagree with the easy accessibility of e-wallets for in-store purchases due to the need for fast internet. They note that not everyone finds e-wallets convenient for cashing out or transferring money online. Some still prefer cash, citing challenges with slow internet that can lead to issues like double transactions, especially in remote areas with unreliable internet access. Due to the need for a quick internet connection, study participants expressed dissatisfaction with the ease of use of e-wallets for in-store purchases. They made a point of highlighting the fact that not everyone finds e-wallets useful, particularly for online cash-outs and money transfers to existing business establishments. Some people still prefer using cash because of problems with slow or unreliable internet connections, which can cause problems like error payments or much worse, double transactions. Participants noted that using e-wallets for payments could be challenging due to the requirement for mobile data and that lengthy loading times wasted time at the payment counter.

Security issues. The participant’s sentiments regarding e-Wallets are a combination of appreciation for their convenience and apprehension regarding potential technological errors and security issues. They also harbor uncertainty regarding the Philippines’ IT capabilities to effectively manage such concerns, leading to a mixed perspective on the adoption of e-Wallets in the country. The perspectives of the participants about e-Wallets reveal varied viewpoints that balances appreciation for their practicality with worries about possible technological errors and security issues. While participants acknowledge that e-Wallet transactions are hassle-free, they also express concern over the potential for technological manipulation or hacking, which casts doubt on the security of utilizing e-Wallets.

Rationalization of participants towards E-wallets. Resistance towards the utilization of e-wallets is often grounded on customer’s rationalizations. Concerns about cybersecurity and data privacy, dependency on a stable internet connection, the perceived value relative to fees, and technical proficiency challenges collectively shape the rationale behind this resistance. The core ideas supporting themes are presented in Table 3.

Cybersecurity issues. Participants expressed various e-wallet concerns, notably system vulnerabilities that could lead to hacking, eroding trust in the Philippine IT infrastructure. Additional worries included personal data leaks, the need for a stable internet connection, internet reception issues, financial losses, and technical glitches. Users also cited the risk of input errors and a lack of application understanding. In essence, e-wallet users justified their apprehensions by highlighting the potential for financial loss, data breaches, transaction hiccups, and delayed fund access when the apps exhibit instability. Addressing concerns about e-wallet reliability, financial security, and data privacy is vital to foster trust and encourage wider adoption of these digital payment methods.

Dependence on stable internet connection. Participants rationalized that e-wallets depend on a steady internet connection. They contend that in order to operate at their best, e-wallet applications often require a fast and reliable internet connection. However, issues might arise when users have poor network signals in particular places or institutions, leading to slowdowns that interfere with app usage. Differing viewpoints on e-wallets draw attention to their crucial reliance on a reliable internet connection. Participants understood that e-wallets frequently perform best when linked to a dependable, quick internet connection. However, problems occur when users have weak network signals in particular places or institutions, causing disruptions that prevent them from using their e-wallet.

e-Wallet fees. E-Wallets derive their profit through fees charged to users and/or merchants. Participants have been concerned about the numerous fees associated with utilizing e-wallets. They are especially worried about transaction fees since they could add up and make using e-wallets less cost-effective. Participants also highlight how the charges of additional fees for larger transactions aggravates their financial problems. The concerns raised by participants regarding e-wallet fees highlight a significant consideration for both users and e-wallet providers. Transaction fees, especially when accumulated over time, can impact the overall cost-effectiveness of using e-wallets for everyday transactions. Additionally, the imposition of additional fees for larger transactions may discourage users from making larger payments through e-wallets.

Tech unsavvy. Despite being in the digital era, there were still participants who voiced tech-related concerns with e-wallets, including hacking risks and making input errors. One admitted to preferring cash due to its simplicity, while the other cited a lack of tech knowledge and resistance to updates. Both highlighted reservations about e-wallets’ technical aspects. Participants’ reservations about e-wallet fees highlight an essential part of the widespread utilization of digital payments. When transaction costs add up over time, using e-wallets for regular transactions may become less cost-effective. Furthermore, consumers who are considering using e-wallets for sizeable purchases may be discouraged by the imposition of additional costs for larger transactions.

            Participants’ insights of e-wallets. The participants in the study shed light on the importance of mindfulness when dealing with the worlds of e-commerce and e-wallets in an era marked by technological innovation. Although there are many benefits to using these functional instruments, participants highlighted a number of difficulties and things to consider. The core ideas supporting themes are presented in Table 4.

Disadvantages. Participants in the study shed light on various challenges and drawbacks associated with e-wallet usage, offering a more comprehensive understanding of the possible downsides in the world of digital payment methods. The participants of this study shed light to a number of difficulties and drawbacks related to using using e-wallets for in-store purchases, giving insightful information on the shortcomings of electronic payment systems. The perspectives of the participants offer a thorough understanding of the difficulties and drawbacks of using an e-wallet. While e-wallets are convenient, users should be cautious about their security, be ready for unforeseen difficulties, and think about using other payment options to reduce any potential annoyances.

ADVANTAGES

 E-wallets have become increasingly prevalent as an efficient and practical means to carry out financial transactions in today’s quickly changing digital landscape. It provides a wide range of benefits that meet the needs present-day consumers. Participants shared their perceptions on the advantages of utilizing e-wallets on a daily basis. These testimonies shed light on the different benefits that may help e-wallets develop acceptance. The participants’ suggestions regarding e-wallets are persuasive. These electronic payment options, which provide ease, accessibility, and wide acceptance, have revolutionized the way people do financial transactions. E-wallets are anticipated to play a bigger part in determining the direction of digital commerce as they develop and become a crucial component of modern financial systems.

Discussion on the perceptions of the participants about e-wallet. Technology-based e-wallets enable convenient online transactions and are becoming increasingly popular in the Philippines due to their speed and accessibility. Despite concerns about internet access, security, and reliability, e-wallets are praised for their efficiency in financial management. To accelerate encourage adoption and utilization, it is important to address security, trust, education, and digital inclusivity, especially in the Philippine context.

Technology-based. The participants’ emphasis on the convenience of e-wallets, tied to their reliance on technology, especially smartphones, tablets, and  reliable internet connections, highlights the central role of technology in improving the usability of e-wallets for in-store transactions. This view is supported by Ma’ruf (2016), who emphasizes increasingly globalized lifestyles, characterized by frequent use of technology-based payment systems such as e-wallets. Despite the fact that e-wallets rely heavily on technology and require an internet connection to communicate with users, Ramli et al. (2021), and inherent reliance of e-wallets’ transaction functionality on mobile electronic devices, it still leads users to carry physical wallets as a backup for items such as IDs and important documents that an e-wallet cannot securely contain.

Facilitates online transactions. The participants discussed their perceptions of e-wallets, emphasizing that these digital tools facilitate many online transactions, including bill payments, purchases, and even sending money. They also considered it essential for various forms of online payments, including in-store purchases, as they allow users to perform activities such as financial transfers, online purchases. In their recent study, Gumasing (2023) highlighted the persistent display of adaptability and accessibility within the realm of mobile payments. E-wallets, situated within the mobile payments sector that provides effortless online transactions and efficient fund transfers, irrespective of the user’s geographic location or reliance on traditional payment methods like cash or credit cards. Additionally, Shaw (2022) observed a significant improvement in online shopping and e-wallet payments, linking this phenomenon to the widespread embrace of electronic advancements.

Convenient and beneficial. The participants’ responses consistently highlighted that factors of convenience and beneficial have a significant and positive impact on e-wallet adoption, as participants perceive them to provide a high level of convenience. This convenience is evident in the ability to easily transact, with just one click or through a simple scanning process, making the e-wallet a useful and accessible application for 24/7 transactions. In addition to its ease of use while making e-payments using e-wallets, it saves a great deal of customer’s time (Chan, 2018).

This coincides to with the observations Ezeudu (2023) that e-wallets are practical, and efficient way to manage one’s finances, especially in light of its increasing popularity of digital payment transactions. In addition, within the Indonesian e-payment sector, Wardana (2022) did a thorough analysis on how convenience and perceived ease of use influence Generation Z’s propensity to adopt e-wallets which was deemed positive.

Slow internet reduces its dependency. The participants disagreed about e-wallet accessibility due to the need for fast Internet, noting that not everyone found them practical for online financial transactions. Ciptarianto (2022) found that e-wallet utilization depends on Internet usage in a country. This suggests that limited internet access can hinder the widespread adoption of digital wallets, potentially contributing to financial inclusion challenges.

In 2020, the World Bank reported internet problems in the Philippines, including poor access, slow speeds, and affordability, hindering digital wallet adoption. Polloso (2019) assessed that about 57% of households did not have internet access, this illustrates the obstacles to e-wallet utilization and adoption in the country.  Despite the popularity of e-wallets, traditional wallets are still relevant Jeyadevi (2023). On the report of Kemp (2022) it also highlighted ongoing problems with Internet connectivity, with 32% population went offline in early 2021, especially affecting poor or no-network areas.

Security issues. The participants raised their apprehensions about the security and reliability of digital wallets, emphasizing the need for strict cybersecurity measures and cooperative regulations. They highlighted the importance of clear user education, transparent security communication, and improved internet accessibility to drive e-wallet utilization which was not possible due to the uncertainties of the Philippines’ IT capabilities. Pollitt and Bouckaert (2011) highlights the security issues surrounding online transactions and the increasing number of Internet fraud cases involving e-wallets reported to the police. This lack of information contributes to  hesitation in trusting these platforms. Despite the increased use of e-wallets during the pandemic, concerns about cybersecurity  and fraud have increased mistrust (Ortiz et.al, 2023).

The study reveals that Generation X’s e-wallet acceptance is influenced by security concerns, in line with Akturan and Tezcan’s (2012) findings. Undale (2020) suggest strengthening e-wallet security post-pandemic. In contrast, Raon et al. (2021) found that factors like perceived risk, trust, security, web seal assurance, usefulness, and benefits have limited impact on Filipino e-wallet adoption. Ching (2017) discovered gender-based differences in e-commerce trust, possibly explaining why men are more open to e-wallets. These findings highligh the importance of security, trust, education, and digital inclusivity in shaping e-wallet adoption, not only for in-store purchases but also within the context of the Philippines.

Rationale on the Resistance towards E-wallet.  Participants repeatedly raised cybersecurity concerns related to e-wallets, stemming from doubts about the reliability of the application and the need for a stable Internet connection. The fees also raise concerns about security and value, especially for less tech-savvy users. To build trust and drive adoption, it is essential to balance convenience and security, ensure Internet reliability, and consider the impact of fees on larger e-wallet purchases. Transparency, enhanced security, and user education are key to driving digital wallet adoption. The study is consistent with the expectation disconfirmation theory, highlighting how customer satisfaction or dissatisfaction depends on the gap between e-wallet expectations and actual experiences.

Cybersecurity Issues. The participants’ apprehensions about the security of e-wallets and the lack of trust in the IT systems in the Philippines are valid and reflect the growing importance of addressing cybersecurity issues in the digital payment landscape. E-wallets increased usage during the pandemic, Undale et al. (2020) found an 86% surge in cybercrime attacks as digital transactions rose in India. Notably, female users expressed higher security concerns than males.

Furthermore, Ortiz et al. (2023) noted that despite the pandemic’s influence on the increased use of e-wallets, cybersecurity and scam issues have hindered people from trusting them. E-wallets are not immune to cyber threats, and cybercriminals have taken notice of their rise in popularity. While Kaspersky (2022) reported that e-wallets are vulnerable to various types of cyberattacks, including phishing attacks, malware attacks, and man-in-the-middle attacks. The report also provides recommendations on how to improve the safety and security of e-wallets.

To address this knowledge gap, Truth360 and Manila Bulletin have established Scam Watch Pilipinas (Luna, 2023). This initiative aims to encourage Filipinos who fall victim to cyber fraud to report these incidents and raise awareness about cybersecurity issues particularly on e-wallets.

Unreliable e-wallet app. Participants advise against sole reliance on e-wallets due to potential store limitations and reliability issues in unstable internet or low battery situations. Despite e-wallet benefits, they emphasize the importance of keeping cash reserves for technology-related shortcomings. Last March 2023, citizens raised concerns about e-wallets, specifically the absence of one-time password text messages required for cash transfers. The Philippine National Police Anti-Cybercrime Group (PNP-ACG) indicated that e-wallet providers carry the responsibility to address the problem, although there was a delay in their response.

Ariffin et. al (2021) explored factors influencing e-wallet service adoption, revealing that perceived usefulness, ease of use, attitude, subjective norm, positive disconfirmation, and perceived behavioral control play pivotal roles in shaping users’ intention to utilize e-wallets. These studies imply the importance of user satisfaction and the influence of technology acceptance models (TAM) and theories of planned behavior on e-wallet adoption.

Dependence on stable internet connection. Participants observed that e-wallets are inaccessible without a fast and reliable internet connection, and there are certain store locations with poor internet signal quality. A case study conducted by Zoria (2020) revealed the significant dependence of e-wallets on Internet connectivity, rendering them inactive when there is no Internet connection. This dependency also extends to the need to have a device such as a mobile phone or tablet to access e-wallet services, as Meiking (2019) points out. Dependence on e-wallets in areas with poor internet connectivity highlights the need for user-centric solutions and improved infrastructure. Additionally, Ong (2023) highlighted the important role of reliable internet access for e-wallet utilization. These findings highlight the importance of improving Internet accessibility and reliability to improve the usability of e-wallets, especially in areas with underserved networks.

e-Wallet fees. Participants voiced their frustration regarding charges or fees linked to specific transactions when using e-wallets, they are resistant to utilize such since they are asked for service fees for some of their transactions they made. The Central Bank of the Philippines has imposed a moratorium on fee increases for electronic fund transfers, including e-wallets, until digital payments reach 40% of total transactions. Issues related to fees, like the Merchant Discount Rate (MDR), may face rejection by Bank Negara Malaysia (BNM) without clear authorization (Muhamed, 2021).

The Value Perception Theory (VPT) suggests that consumers evaluate the value of e-wallets based on benefits versus costs, with concerns including cybersecurity, technical complexity, and additional fees. Costs play a significant role in consumer decisions, as highlighted by Tenk (2020), affecting mobile payment adoption.

Tech un-savvy. Participants expressed that majority of the community has e-wallets, except for older people who may not be familiar with them. Some are still hesitant due to the need for tech-savvy users who can keep up with changes in wallet processes and updates. The participants who are tech knowledgeable find it not familiar from the usual way of paying  In the context of Egypt, the “Traditional Barrier” (TB) emerges as a notable obstacle discouraging the adoption of mobile banking (Elbadrawy & Fady, 2012).

Drawing from Technology Adoption Model (Davis, 1986), it becomes evident that being less adept with technology is an aspect of this Traditional Barrier. This aspect of TB contributes to resistance against embracing E-wallets, thereby indicating a positive correlation between TB and resistance to electronic transactions. The adoption of E-wallets necessitates a departure from established cultural norms and daily routines.

Consequently, consumers tend to develop resistance to this technological change particularly if they are not technologically inclined (Wen, 2018). It is worth highlighting that TB has a significant impact on users’ resistance to e-wallet utilization. This highlights the idea that when e-wallet adoption requires a shift from ones norms, users tend to be more resistant to this change.

Moreover, according to Samsukha (2021), one factor that contributes to consumers’ reluctance to use e-wallets is their lack of awareness about the benefits of this payment method. Therefore, there is a need to broaden the customer perspective and educate them about the benefits of using e-wallets.

Participants’ Insights with e-wallets. The participants emphasized the benefits of e-wallets, such as convenience and additional features, while acknowledging the disadvantages, including security concerns and user confusion. The study provides results on a balanced understanding of e-wallet usage, explore the factors driving its resistance and identify the barriers it faces. It provides comprehensive insights into the resistance to use of e-wallet by exploring their drawbacks and benefits. By analyzing these aspects.

Drawbacks in the use of e-wallet systems. According to Chakravarty & Bhakuni (2022), their participants expressed concerns about the risk of hacking and feelings of insecurity during the transaction process. It resulted that like any technology, e-wallets have advantages and disadvantages. Users encounter several obstacles when using e-wallets, including connectivity issues, security concerns related to hacking, restrictions on international transactions, and limitations on transaction amounts.

In a recent study of  Rajitha et al. (2023) electronic wallet awareness and usage have increased, particularly among the 19-35 age group in rural India. However, widespread e-wallet adoption is hindered by smartphone unavailability, trust issues, and security concerns. While the rural Indian market offers substantial potential for e-wallet providers, challenges persist, including limited access to reliable internet and smartphones. Many rural residents lack smartphones and are uninformed about e-wallets, primarily due to security concerns. Moreover, concerns about potential internet disruptions during transactions deter some from using e-wallets.

Ali & Gopalan (2018) found that SWOT assessment, though useful for self-evaluating e-wallet fees, faces complexity and is influenced by numerous criteria. Relying solely on SWOT may not suffice for evaluating decision alternatives of consumers. They introduced principal components analysis as an alternative approach to streamline SWOT variables and create a more concise SWOT matrix to address these limitations.

E-wallet systems have revolutionized finance management and digital transactions, offering numerous benefits and conveniences. However, they are not without drawbacks. In this discussion, we delve into key issues and challenges associated with e-wallet usage.

Benefits in the use of e-wallet systems. According to Darmawan (2022), students view digital wallets as a simple, convenient, and secure alternative to cash payments. This perspective is consistent with the key features emphasized by digital wallet developers, including convenience, comfort, and security (Madan, 2016).

E-wallets are considered a more convenient and efficient option for making purchases and processing transactions faster. They also offer attractive rewards such as significant bonus points, low or free fees, and other long-term benefits such as promotions and discounts (Tewu, 2022).

Consequently, a study that perceived usefulness has a positive influence on the relative advantage of mobile payment e-wallets. Additionally, there is strong evidence supporting a direct relationship between relative advantage and the continued and growing use of mobile payment systems (Sujana, 2022).

Implication to the Business industry. The study provides valuable insights for the business industry, emphasizing the need to address both the drawbacks and benefits of e-wallet systems. To unlock the full potential of e-wallets, businesses should prioritize security, reliability, accessibility, and usability. This entails implementing robust security measures, offering user education on risks, and investing in comprehensive customer support, such as video tutorials and clear interfaces.

Implications to the e-wallet service Providers. E-wallet service providers face a series of important measures to address security challenges. These include investments in strong encryption, multi-factor authentication, and real-time fraud monitoring to protect users from potential threats. Additionally, user education is key to promoting security best practices, such as recognizing phishing attempts and setting strong passwords.

Implications to the users of e-wallets. E-wallet users need to demonstrate enhanced security awareness to avoid the risk of becoming a target of scammers and hackers. This includes staying informed about potential scams, using strong authentication methods like strong passwords and two-factor authentication, and regularly monitoring their transaction history to detect currently operating illegally.

Implications to e-business. The results of this study may be limited and not applicable in a wider scope. However, for e-businesses offering e-wallet transactions in Zamboanga City, the implications arising from the results of the study from consumers becoming targets for scammers and hackers due to a lack of vigilance are multifaceted. It is paramount for these businesses to strengthen their security protocols, encompassing encryption, multi-factor authentication, and real-time fraud monitoring, to protect their platforms and user data. Regular security audits are pivotal for identifying and promptly addressing vulnerabilities, ensuring a safer and more secure environment for e-wallet users in Zamboanga City.

The insightful conversations with e-wallet-resistant individuals in Zamboanga City reveal their genuine desire to adopt digital payment methods, albeit their lingering concerns. Notably, the 2018 partnership between the US Government and Zamboanga City emphasizes the importance of enhancing digital literacy, particularly for those with limited financial knowledge, which both e-wallet providers and USAID’s E-PESO team should focus on. Educational programs, both online and offline, can aid in improving comprehension and promoting the benefits of digital wallets. Participants expressed potential future interest in e-wallet usage but stressed the need for service providers to address existing issues and errors. Transparency in data processing, clear privacy policies, and user-controlled data management options are vital in mitigating privacy concerns and building trust in e-wallet services.

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