PREO Journal of Business and Management EISSN: 2945-3933

Volume 4, Issue 1, February 2023

Payment Scheme’s Effectiveness among Selected Private Higher Education Institutions in

National Capital Region: A Basis for Developing Strategic Policy

Noriel A. Lastrollo
AMA University, Quezon City, Philippines
[email protected]

Jay A. Sario
AMA University, Quezon City, Philippines
[email protected]

Abstract

The COVID-19 pandemic boosted the utilization of online payment schemes or methods, which was
proven very beneficial. It kept the economy as well as school operations running. Higher Education
Institutions (HEIs) adopted online payment transactions to allow students to proceed with
enrollment. Yet, this abrupt change directly affected the students and parents, especially on the use of
online payment procedures in paying tuition fees. In this study, the researcher aimed to assess the
effectiveness of online payment methods based on the following criteria: cost efficiency, safety, ease
of use and speed. Also, the researcher wanted to investigate if there was a significant difference
between the profile of the respondents and the effectiveness of online payment methods. Using cluster
sampling, 1,050 students and 1,050 parents from selected cities in National Capital Region (NCR),
namely: Manila City, Quezon City, and Taguig City, were recruited. Based on the results, the profile
composition of parent-respondents indicates that they were between 41 to 50 years of age, all females,
with family monthly income of P30,001 to P45,000 and P45,000 to P60,000, college graduates, and
preferred to use credit card and debit card. Furthermore, student-respondents were mostly at the age
of 19 to 20 years old, all females, in 4th year college, and preferred to use credit card and mobile
payments. As to the assessment of online payment methods, most of the respondents perceived the
online payment methods in terms of cost-efficiency, safety, and ease of use to be very effective. As to
the challenges and issues experienced by students and parents on online payment methods, the
following were identified: unfamiliarity, disorientation, difficulty in validation and problems with
online applications. As to finding the significant difference between the age of respondents and the
effectiveness of online payment methods, a significant difference between age groups and cost
efficiency, safety, ease of use, and speed was posited. As to finding the significant difference between
sex of respondents and the effectiveness of online payment method, results revealed that there was a
significant difference between sex and cost efficiency, ease of use and speed. However, no significant
difference was found between sex and safety. This study recommends that school administrators
should provide orientation to new and old students regarding the use of online payment methods.
They should make online tutorials on downloading and use of online applications available since it is
critical for the students and parents to adopt online payment methods. The accounting office and
cashier should have a clear, simple, and easy-to-follow procedure for online payment transaction. It is
highly suggested also that the accounting office lessens the days of validating the payment made by
the students and it must have a system for it. The school should promote online payment transaction
which saves resources from filing payment receipts and using facilities. In addition, social distancing

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should be encouraged to avoid the spread of COVID-19 virus. This study has significant implications
on the management system implemented by the higher education institution.

Keywords: online payment methods, students, parents, higher education

1. Introduction
Electronic payment progressed beyond its original purpose of making purchases and other monetary
transactions more convenient than traditional methods worldwide. Today, e-payments has become a
stress-free, quick, and simple payment method, allowing businesses and consumers to achieve higher
cash flow and operate smoothly. Lyra Network (2021) provided an all-encompassing definition of e-
payment, which stands for “Electronic Payment," and allows customers to pay for services and
products using electronic methods such as card-based payments, e-checks, digital wallets, and internet
banking (Chaves et al., 2019; Pattan & Meenal, 2018). Recent technological advancements and the
growth of online commercial transactions allowed e-payment to enhance its usability vastly. For
instance, a report from Statisca Research Department (2021) mentioned an increase in cashless
transactions in 2020 and projected 75.5 million e-payment users in the Philippines in 2025.
Furthermore, the Bangko Sentral ng Pilipinas (BSP) reported that Filipinos used cashless payments to
make 4.6 billion monthly payments in 2019. In addition, according to the Department of Trade and
Industry, the Philippines now has 15 e-payment providers, with Paymaya, Gcash, and Coins.ph being
the top three e-payment service providers (Raymart, 2021). As the said service providers embraced
cashless payment methods, contactless payments were also introduced as another payment tool for
customers. Consumers could use tap-to-go systems to make purchases without physically swiping a
payment card into a point-of-sale device, signing names, or entering PINs (Kagan, 2020).

The transition from traditional to new normal transaction required companies to drive innovation and
stricter competition. Currently, the three major e-payment providers have provided contactless
payment cards for daily purchases and transactions by Filipinos. To begin, coins.ph provided a beep
card for transportation and retail purchases at Wendy's, FamilyMart, and Ministops (Coins.ph, 2021).
Meanwhile, PayMaya Enterprise proudly introduced its three contactless payment cards, including
beep cards, EMV cards, and prepaid cards, allowing customers to pay online and offline at stores
accepting card payments (PayMaya Philippines Inc.). Like PayMaya, GCash welcomed a reloadable
prepaid card to customers, a payment tool for online and in-store purchases known as the Gcash
Mastercard (Zoleta, 2021).

Recent studies highlighted the link between security and trust and customers' adoption of e-payment.
Security and trust concerns about privacy, fraud, and identity theft were the most prevalent
determinants among consumers when considering using e-payment (Patel et al., 2019; Nguyen &
Hyunh, 2018). Because of the increase in transactions, single authentication was not enough for
expensive purchases. For instance, there was a need for a stronger security system and authentication
to look at the validity of individuals by using multi-factor authentication (Hassan et al., 2020). In
addition to the increased transactions, the COVID-19 pandemic significantly influenced society and
services, driving businesses to adopt new technologies. Contactless payment technology was proposed
to be adopted and maintained as a protective health habit to reduce the risk of COVID-19 infection
(Puriwat & Tripopsakul, 2021). However, Alrawais (2020) discussed that the security of near-field
communication (NFC) or contactless payment remained an issue, requiring additional investigation

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and research. As an analogy, NFC could not be safeguarded against several of the surveyed attacks,
such as eavesdropping or data manipulation.

Despite the immense popularity and modernization of e-payment, the ongoing advancement of
technology increased risk, prompting the need for e-payment providers to improve their service and
product offerings to stay abreast of the accelerated era of technological change. Security and trust were
identified as essential factors in the use of e-payment (Oyelami et al., 2020). Meanwhile, perceived ease
of use and perceived usefulness were among the original determinants for e-payment use and use of
e-payment methods among customers (Setiawan & Setyawati, 2021; Antinoja & Scherlin, 2019).

Furthermore, customer satisfaction was found to have a relationship with the initiatives of e-services
in the three most accepted categories, such as security and trust, ease-of-use, and environmental
concerns, in the areas of technology adoption (Herath, 2019). The gap between real technological
innovations and the extent of security and customer trust in e-payment raised an intriguing question
for researchers on eliminating the predictors that discouraged customers from using e-payment
regularly. For example, Filipinos preferred over-the-counter transactions and cash-on-delivery (COD)
for online shopping because of security issues.

In the educational context, the growing popularity of electronic transactions prompted schools to
invest in tools and applications. This digital payment platform sped up the processing of expenses like
K-12 meal costs and college tuition (Paykamian, 2021). Often handled by a third party, payments in
Higher Education Institutions (HEIs) were a crucial but often overlooked part of the equation for
schools looking to serve their parents and students (Coppolo, 2021). Moreover, schools embraced
more digital payment options for tuition fees and some after-school program expenses.

Despite using e-payment systems at universities, students continued to face challenges with the system
and traditional payment (Mwewa, 2018; Cendana & Palaoag, 2020). Some students still used traditional
payment to complete the payment and registration process, imposing a threat to cleanliness and health
safety, which was not part of the initial initiative in a cashless transaction. People were worried about
virus infection using real money (Aji et al. 2020). Therefore, a new way of processing student payments
had to be found. Thus, this study assessed the potential success of an enhanced payment method to
facilitate more accessible, reliable, and safer payment and registration processes in HEIs.

In the present study, the researcher examined electronic payment in an academic context as a mode
of payment in tuition fees and miscellaneous for students and parents. Existing research on electronic
payment was found beneficial and advantageous. The researcher recognized the need to assess the
effectiveness of online payment to provide evidence of its usefulness and efficacy. Thus, this study
focused on assessing the effectiveness of online payment in selected private higher education
institutions.

2. Statement of the Problem

The study aimed to answer the following statements:
1. What is the demographic profile of the parents in terms of:
1.1 age;
1.2 sex;
1.3 socioeconomic status;

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1.4 educational attainment; and

1.5 payment methods?
2. What is the demographic profile of the students in terms of:
2.1 age;
2.2 sex;
2.3 year/level; and
2.4 payment methods?
3. As perceived by the respondents, how effective are online payment methods of selected private
HEIs in terms of:
3.1 cost efficiency;
3.2 safety;
3.3 ease of use; and
3.4 speed?
4. What are the challenges and issues experienced by the respondents in using online payment
methods?
5. Is there a significant difference in the perception of the respondents as to the effectiveness of
online payment methods when grouped according to their selected profile?
6. Based on the study’s results, what strategic policy can be suggested or developed?

2.1. Hypothesis
There was a significant difference in the perception of the respondents as to the effectiveness of the
online payment methods when grouped according to their selected profiles.

3. Methods
The Mixed-method sequential explanatory design was used in the study. It comprised of two distinct
quantitative and qualitative data (Creswell, 2018). The procedure aimed to collect, analyze, and mix or
integrate quantitative and qualitative data within a single study to understand the research problem
better. Mixing both kinds of data provided more relevant and grounded results for capturing issues
and details of situations.

3.1. Respondents and Sampling

The target participants of this study were 1,050 college students and 1,050 parents from selected
Private Higher Education Institutions (HEIs) in the National Capital Region. Since there were many
private schools in NCR and it was impossible to collect the data simultaneously, the researcher decided
to use cluster sampling.

The cluster sampling technique was used in the study. It was a probability sampling technique usually
used to study large populations geographically dispersed (Makela et al., 2018). In this study, 1,050
students and 1,050 parents were recruited from HEIs in NCR. Using the fishbowl technique, the
researcher listed all the cities in NCR and put them in the bowl (the cities represented the clusters for
NCR). The researcher randomly selected three cities which became the focus of the study. These were
Taguig City, Quezon City, and Manila. From there, twenty-one (21) private schools were randomly
selected; seven (7) schools in Taguig, seven (7) schools in Quezon City, and seven (7) schools in
Manila. Letters of request were sent to the twenty-one (21) private HEIs. Furthermore, the researcher
also used various modes of survey administration to improve response rates, such as email and
messenger (Mudrak et al., 2021).

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After the survey, a purposive sampling technique was utilized to interview five students and five
parents to determine the problems, challenges, and issues with an online payment transaction.

Student respondents’ inclusion criteria:

1. Must be enrolled in private HEIs in Quezon City, Manila City, and Taguig City.
2. Have experienced paying tuition through online transactions for at least 2 terms.
3. Full-time college students.

Parent respondents’ inclusion criteria:

1. Must have child/children enrolled in private HEIs in Quezon City, Manila City, and Taguig
City.
2. Have experienced paying tuition fees through online transactions for at least 4 months.

3.2. Research Instruments

A researcher-made survey questionnaire was used to collect data needed to answer the problems in
the study.

Personal information sheet. Part I displayed a copy of the researcher’s information sheet or profile
of the respondent’s questionnaire, which was created to elicit information on the respondents' profile
variables.

Effectiveness of Payment Scheme Questionnaire. (Cronbach α = 0.80) A 16-item questionnaire

that measured the effectiveness of the payment scheme as to cost efficiency (4-item), safety (4-item),
ease of use (4-item), and speed (4-item) and was answered using a 5-point Likert scale from 1 = as
very not effective to 5 = very effective. Sample questions include ‘helps me saves my transportation,’ ‘my
personal data, ‘password and pin are protected,’ and ‘I am free of filling out many forms before payment.’

Semi-structured questionnaire. The guide questionnaire was prepared for the interview. This
helped the researcher explore the challenges, issues, or problems experienced in using online payment.

3.3. Data Gathering

To achieve the study’s goal, the protocol was approved by the AMA school administrators and selected
Private HEIs. The researcher obtained permission from twenty-one selected private HEIs before
distributing the survey form. Participants who gave their consent were given a survey form. The survey
form contained information on the study's purpose before the survey was administered. This included
information regarding their rights, such as: a) they can join or leave the study at any time; b) they will
not be paid in any way for participating; c) there are no right or wrong responses; d) all items must be
answered, and e) they can take their time when completing the instrument. To maintain anonymity,
the participants' identities were not obtained.

3.4. Data Analysis

The researcher used different statistical tools to organize the analyzed data to answer the questions
depicted in the study. Statistical Package for Social Science (SPSS) was used to analyze the data. SPSS
is a Windows-based program that can perform data entry and analysis to create tables and graphs. It
could perform highly complex data manipulation and analysis with simple instructions.

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The statistical tools that were used in the study are the following:
1. Frequency and Percentage Distribution. This was used to determine how a part relates to its
whole. Percentage statistical measures were used extensively in describing the profile of the
respondents. These were used to determine and present the profile of the study's respondents
quantitatively.
2. Weighted Mean. Since the options of the items of the questionnaires were assigned with
points, the weighted mean was used as the measure of central tendency. The researcher used
this to determine the perceptions of the respondents. The following 5-point Likert Scale was
used:

For the assessment of the respondents as to the effectiveness of payment methods:

Scale Mean Range Descriptive Narrative Interpretation
Value Interpretation
5 4.21-5.00 Very Effective This means that the students and parents are
very delighted with HEIs payment methods

4 3.41-4.20 Effective This means that the students and parents are
delighted with HEIs payment methods
3 2.61-3.40 Moderately Effective This means that the students and parents are
occasionally delighted with the HEIs
payment methods
2 1.81-2.60 Not Effective This means that the students and parents are
not delighted with HEIs payment methods

1 1.00-1.80 Very Not Effective This means that the students and parents are
very not delighted with HEIs payment
methods

3. Standard Deviation. The researcher used this because it was the most used indicator of the
degree of dispersion and the most reliable measure to estimate the variability in the total
population from which the sample came.

4. One-Way ANOVA. The One-way ANOVA was used to determine the differences between
respondents in terms of socioeconomic status, age, and educational attainment and their
perception of the effectiveness of the implemented payment methods.

5. T-test for independent sample. The t-test for the independent sample was used for gender
comparison on the perceived effectiveness of implemented payment methods.

6. Thematic Analysis. This qualitative analytic tool was used to analyze interviews and create a
meaningful theme out of the interview.

4. Results and Discussion

The study’s goal was to assess the effectiveness of the payment scheme. This study had two types of
respondents: 1) parents and 2) students who used various payment methods for paying for school
tuition and miscellaneous fees.

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4.1. Profile of the parent and student respondents

Table 1 presents the profile of parent-respondents (n = 1050). Data showed that most of the parent-
respondents were in the age of 41 to 50 years old (66.67%), female (66.67%), with a family monthly
income of P30,001 to P45,000 (33.33%), and P45,000 to P60,000 (33.33%), college graduates
(61.90%), and preferred to use credit cards (33.33%) and debit cards (33.33%).

Table 1. Profile of the Parent respondents (n = 1050) and Student Respondents (n = 1050)
Profile Frequency Percentage
Parents
Age
31 to 40 years old 200 19.05
41 to 50 years old 700 66.67
51 to 60 years old 150 14.29
Gender
Female 700 66.67
Male 350 33.33
Monthly income
PHP30,001 to PHP45,000 350 33.33
PHP45,001 to PHP60,000 350 33.33
PHP60,001 to PHP75,000 200 19.05
PHP75,001 to PHP90,000 150 14.29
Educational Attainment
College Level 230 21.90
College Graduate 650 61.90
Post-Graduate 170 16.19
Payment methods
Credit card 350 33.33
Debit card 350 33.33
Mobile payments 200 19.05
Online banking 150 14.29
Students
Age
18 years old and below 200 19.05
19 to 20 years old 700 66.67
21 years old and above 150 14.29
Gender
Female 650 61.90
Male 400 38.10
Year/ Level
1st Year 150 14.29
2nd Year 200 19.05
3rd Year 300 28.57
4th Year 400 38.10
Payment methods
Credit card 350 33.33

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Debit card 200 19.05

Mobile payments 350 33.33
Online banking 150 14.29

As to student-respondents profile, most of them were between the age of 19 to 20 years old (66.67%),
female (61.90%), 4th year college students (38.10%), and preferred to use credit cards (33.33%) and
mobile payments (33.33%) see table 2.

Effectiveness of online payment methods

The parent and student respondents assessed the effectiveness of online payment based on efficiency,
safety, ease of use, and speed. Table 3 shows the effectiveness of online payment methods as to cost-
efficiency.

Table 2. Effectiveness of Online Payment Methods as to Cost-Efficiency

Verbal
Indicators Mean SD
Interpretation
1. Helps me save my transportation expenses 4.26 0.44 Very Effective
2. Saves my energy and time from going to school 4.38 0.50 Very Effective
3. I can still save some money even if some payment 4.28 0.44 Very Effective
method has an additional charge
4. I can still attend to my other activities 4.39 0.49 Very Effective
Overall 4.32 0.28 Very Effective

Table 2 describes the effectiveness of online payment methods as being cost-efficient. The indicator
“I can still attend to my other activities” was very effective with a mean of 4.39. This was followed by
the indicator “saves my energy and time from going to school”, which showed a mean of 4.38 and
was interpreted as very effective. The indicator “I can still save some money even if some payment
method has an additional charge” has a mean of 4.28, which was interpreted as very effective. Lastly,
the indicator “helps me save my transportation expenses” was very effective, with a mean of 4.26. The
overall mean was 4.32, which was interpreted as very effective.

The students and parents perceived online payment methods as effective based on cost efficiency.
They saved transportation expenses, time, and energy by paying online instead of attending the school
accounting office. MyEdu (2021) stated that a solid digital payment system was very cost-effective and
saved both institutions and parents a lot of money. It saved educational institutions money on ledgers,
registers, fee cards, and other paper-based documentation. It saved parents’ money in commuting and
allowed them to pay from their offices or homes. They avoided late penalties because of the timely
notices and reminders.
E-payment provided greater value for money. Traditional payment methods could provide less value
for money than digital payment options. Several institutions provided cash back and reductions when
parents paid their cashback digitally. Some companies offered considerable discounts for paying fees
in advance or on time. In addition, the electronic payment system encouraged parents and kids to
adopt sound financial habits (MyEdu, 2021).

In addition, Table 3 presents the effectiveness of online payment methods regarding safety based on
parent and student perspectives.

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Table 3. Effectiveness of Online Payment Methods as to Safety

Verbal
Indicators Mean SD
Interpretation
1. No chances of getting a COVID-19 infection 4.39 0.48 Very Effective
2. No chances of involvement in any accident 4.64 0.50 Very Effective
3. My personal data, password and pin is protected 4.26 0.44 Very Effective
4. My money is free from stealing 4.39 0.50 Very Effective
Overall 4.54 0.19 Very Effective

Table 3 depicts the effectiveness of online payment methods as to safety. The indicator “no chances
of involvement in any accident” reflected 4.64 mean or very effective. The second category “no
chances of getting COVID-19 infection” and “my money is free from stealing” got 4.39 mean
interpreted as very effective. The last category “My personal data, password, and pin are protected”
got 4.26 mean interpreted as very effective. The overall mean showed 4.54 mean interpreted as very
effective.

Safety on using the online payment method such as protection for data privacy and passwords and
physical safety to avoid COVID-19 infections was perceived by the parents and students as an
advantage on using the online payment method. The hazards associated with traditional money, on
the other hand, were eliminated with digital payment. MyEdu (2021) claimed that digital payment
gradually supplanted traditional monetary transactions during the coronavirus outbreak.

Due to the tremendous impact of the coronavirus pandemic on their daily lives, particularly the
constraints on physical travel imposed by the crisis, more Filipinos adopted digital channels to perform
transactions — even vital payments, as stated by Lucas (2020).

More crucially, due to public health concerns, as many as nine out of ten local users of electronic
payment systems now preferred conducting cashless transfers over cash payments (Lucas, 2020).

Based on the findings of the online poll conducted by PayPal, 87% of Filipinos increased their use of
digital payments during the pandemic, and 90% stated they preferred digital payments to cash during
this time.

According to GoCardless (2021), e-payment systems employed advanced encryption techniques to

guarantee the safety and security of transactions, providing customers with complete peace of mind
when doing business. The incorporation of strong anti-fraud measures further reduced the potential
risk of disputed payments, thus safeguarding profit margins. However, there were still potential
vulnerabilities in these systems that could be exploited by attackers. As a result, security was still an
issue in these payment apps. There were various methods for protecting user or customer information
from forging signatures, password or security PIN hacking, and other threats. However, such payment
schemes were not without flaws. Single-factor authentication, such as two-factor authentication, was
now widely used. On the internet and banking systems, passwords were no longer considered secure.
Automated password-collecting algorithms could readily identify easy-to-guess passwords, such as
names and ages, posing a risk to our personal information or bank accounts.

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In the case of e-payment, biometric authentication made sense. No one needed pockets in today's
world, i.e., pocketless. Those jingling keys, plastic cards (i.e., credit cards, etc.), and checkbooks were
replaced with something closer to the body. When someone needed to unlock a door or make a
transaction, they could use a fingerprint or other biometric approaches, such as a voice command or
a computer scan of their eyeball. According to Hemalatha (2020), as a biometric identification method,
fingerprint recognition was thought to be the most trustworthy and accurate one currently available.

It was observed that an increasing number of Filipinos became more receptive to the use of cashless
payment methods for both online and in-person transactions (Lopez, 2021). These payment methods
were being utilized for a variety of purposes such as music and video streaming, ride-hailing, and
transportation arrangements through services like the Beep Card. As customers embraced these
payment methods, they could conveniently make payments on e-commerce websites anytime and
anywhere, reducing their efforts and making cashless transactions more convenient and secure (Lopez,
2021).

As to ease-of-use, Table 4 illustrates the effectiveness of online payment methods.

Table 4. Effectiveness of Online Payment Methods as to Ease-of-Use

Verbal
Indicators Mean SD
Interpretation
1. I am comfortable paying tuition fees 4.39 0.50 Very Effective
2. I am free of filing out many forms’ prior payment 4.25 0.44 Very Effective
3. I am free from counting bills and coins during payment 4.33 0.49 Very Effective
4. I am free from a long waiting line during payment 4.31 0.50 Very Effective
Overall 4.32 0.25 Very Effective

The above table tackled the effectiveness of online payment as to ease of use. The category “I am
comfortable paying tuition fees” with a mean of 4.39 was interpreted as very effective. The second
category “I am free from counting bills and coins during payment” showed a 4.33 mean, interpreted
as very effective.

Then, “I am free from a long waiting line during payment” with a mean of 4.31 was very effective.
Lastly, “I am free of filing out many forms’ prior payment” got a mean of 4.25, interpreted as very
effective. The overall mean showed 4.32 with very effective interpretation.

This means that students and parents perceived online payment as easy to use and convenient. They
got away from the hustle of counting bills, filling out the forms for traditional payment, and waiting
in long lines. MyEdu (2021) mentioned that advanced digital payment systems and school
management software were very easy to use. It not only offered a variety of payment options, but it
also provided real-time analytics, was designed for speedy operations, and allowed users to see all the
data. Parents could even pay their fees in a few easy steps outside of office hours.

Setiawan and Setyawati (2020) stated that perceived ease of use had a favorable and significant impact
on attitudes about usage based on statistical findings. This effect demonstrated that the convenience
of mobile payment would increase the desire to utilize mobile payment in transactions. In addition,
previous research (Jiwasiddi et al., 2019) supported the findings of this study, leading to the conclusion

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that perceived ease of use was one of the elements that greatly influenced attitudes toward usage.
Users embraced new technology more quickly if it was perceived as simple and consumed less time
and energy. Lopez (2021) conducted a study which found that satisfaction with usefulness, reliability,
and customer service of e-payment systems was substantially associated with respondents’ agreement
with e-payments in terms of offering convenience, ease of use, and security.

Lastly, Table 5 describes the effectiveness of online payment methods as to speed. The indicator
“Paying is fast” reflected a 4.64 mean, interpreted as very effective. Then, the indicator “processing of
payment is fast” showed a mean of 4.40, interpreted as very effective. The indicator, “payment
validation is fast” reflected a mean of 4.31, interpreted as very effective. Lastly, “the procedure and
process for payment is short,” got a mean of 4.26, interpreted as very effective. The overall mean was
4.40, with a very effective interpretation (See Table 6).

Table 5. Effectiveness of Online Payment Methods as to Speed

Indicators Mean SD Verbal
Interpretation
1. Processing of payment is fast 4.40 0.49 Very Effective
2. Paying is fast 4.64 0.50 Very Effective
3. The procedure and process for payment is short 4.26 0.44 Very Effective
4. Payment validation is fast 4.31 0.46 Very Effective
Overall 4.40 0.22 Very Effective

This means that the students and parents perceived online payment as fast in paying tuition and other
school fees. They perceived paying online as a simple procedure. When parents could pay fees with a
single click of a button, they were less likely to visit the institute and wait in huge lines to do so. Parents
could also pay through a variety of methods, such as net banking, smartphone apps, or UPI transfer.
MyEdu (2021) argued that it ensured speedy operations because the complete transaction took only a
few seconds, and parents were able to download fee receipts as proof of payment.

According to Newsbytes.PH (2020), PayMaya provided cashless payment solutions online and in-
school to over 40 schools across the country, providing students with a safe and simple way to pay
for registration fees and other educational expenses as schools embraced alternative learning methods
last year.

Furthermore, by removing the need for students to carry currency on their pockets, cashless payment
in educational institutions could lead to faster financial transactions, transparency, reduced risk of
theft, efficiency, expense tracking, and bank benefits, and may even contribute to proper cleanliness.

Convenience (or compatibility) was the consistency between technological progress and consumers'
experiences, values, and needs. The flexibility of these systems, which allowed them to be easily
integrated into consumers' daily life, was a crucial feature of compatibility for users to accept mobile
payment methods. Mobile payments have been acknowledged as a quicker, easier, and more
convenient means to make payments anywhere and anytime, according to Emizen Tech (2021). In
fact, the majority of users of mobile payments mentioned convenience as the main benefit to using
them.

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PYMNTS (2021) argued that the demand for faster, more efficient ways to collect and disburse
payments for educational services ranging from distance learning to online test preparation to student
loan repayment was growing as the learning environment expanded beyond campuses and into the
virtual sphere.

Challenges and issues experienced by the respondents in using online payment methods

The parent and student respondents shared their feedback on the use of online payment methods.

Theme 1: Not familiar with online payment methods

Respondents’ familiarity with online payment methods made it convenient and easy to pay tuition
fees and miscellaneous. However, the use of online payment methods was not introduced properly
and may have affected the success of online payment methods as well as the adoption of the
customer to the new payment scheme.

According to Participant 1, “I am conditioned to pay my son’s tuition fees through going to the school student
accounting office. Then, pandemic came I struggle because I am not familiar with online payment methods.”

Participant 5 mentioned, “I am not aware that Gcash and BPI online banking can be used for paying tuition
fees. Even pandemic I book appointments to pay for my child's tuition in school. No announcement from schools they
allow online payment.”

Theme 2: Lost! Not oriented on the use of various online payment methods
Due to the COVID-19 pandemic, private HEIs adopted online payment methods to protect their
employees and students from infection. On the contrary, prior to its adoption, promotion, and
orientation on the use of the new payment scheme should have been conducted.

According to Participant 5, “The school did not provide any information in their Facebook page or formal
communication on the acceptance of online payment. Terrible! We pay for penalties even if they know we cannot go out
because of a lockdown.”

Participant 8, “I am not tech savvy, I am not good at using mobile and computers… I ask my daughter to assist
me so we can pay her tuition fees online.”

Participant 2 mentioned, “There is this time I talked to the Department Chair regarding alternative means of
paying tuition… hmm…The community quarantine limits us from going to school. Then, a school announcement
came very late regarding online payment. However, it is not clear and not communicated properly as to the process of
payment”.

In addition, Participant 10 shared that “Pandemic came. I am a transferee. I don’t know where to seek
assistance. It takes three emails before accounting responds to my concerns about paying tuition fees. They did not
inform me that online payment can be used for paying tuition fees.”

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Theme 3: Validation of online payment is sometime difficult

The authenticity of parents’ and students’ claims on successful online payment required validation
from the accounting office. When validation of online payment was not systematic it added to the
dissatisfaction of customers with the payment system.

According to Participant 10, “I thought once I pay the tuition fee it's already okay… Well, it’s not! You have
to wait for three days for validation to reflect in the system before you become officially enrolled”.

Participant 1 discussed that “They did not communicate earlier the process for online payment. Specifically, the
validation of online payment…… They wait for many students to complain before they act on it.”

Theme 4: Online payment apps problem

The promise of online payment to ease transactions and make it comfortable for the customers
backfired when the app itself had problems such as internet connectivity.

According to Participant 2, “When you update the Gcash app there is a problem with online payment. It did not
provide confirmation about your payment but your balance has been deducted.” Participant 2 (student)

Participant 4 mentioned, “When paying online, I learned you have to have a stable internet connection. It takes
time for an apps to load. You cannot proceed with online payment unless you have stable internet or data.”

Differences in Respondents’ Profile and Effectiveness of online payment methods

Table 6 below presents the differences in respondents’ selected profiles on the effectiveness of online
payment methods. Based on the results, there was a significant difference in the opinion of the various
age groups on the payment methods as to cost-efficiency (F (5, 2093) 122.38, p <0.01).

As to the decision of hypothesis, the null hypothesis was rejected. This means that various age groups
(18 years old and below, 19 to 20 years old, 21 to 25 years old, 31 to 40 years old, 41 to 50 years old,
and 51 to 60 years old) perceived the online payment methods’ effectiveness differently as to their
cost efficiency.

Table 6. Differences in Selected Profiles on the Effectiveness of Online Payment Methods

Profile Cost Safety Ease of Speed
Efficiency Use
Age
31 to 40 years old F-value = F-value = F-value = F-value =
41 to 50 years old 128.38, 57.96, 76.84, 159.83,
51 to 60 years old df (5, 2093) df (5, 2093) df (5, 2093) df (5, 2093)
18 years old and below p < 0.01 p < 0.01 p < 0.01 p <0.01
19 to 20 years old Significant Significant Significant Significant
21 years old and above
Gender
Female t-value = t-value = t-value = t-value =
Male 2.40, 2.50, 10.26, -3.59,
df (2098) df (2098) df (2098) df (2098)

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p < 0.01 p >0.05 p < 0.01 p < 0.01

Significant Not Significant Significant
Significant

As to safety, there was a significant difference in the perception of the various age groups on the
payment methods’ safety (F (5, 2093) 57.96, p <0.01). As to the decision of hypothesis, the null
hypothesis was rejected. This means that various age groups (18 years old and below, 19 to 20 years
old, 21 to 25 years old, 31 to 40 years old, 41 to 50 years old, and 51 to 60 years old) perceived online
payment methods’ effectiveness differently as to safety.

Furthermore, a significant difference in the opinion of the various age groups regarding the payment
methods as to ease of use (F (5, 2093) 76.84, p <0.01) was observed. As to the decision of hypothesis,
the null hypothesis was rejected. This means that various age groups (18 years old and below, 19 to
20 years old, 21 to 25 years old, 31 to 40 years old, 41 to 50 years old, and 51 to 60 years old) perceived
online payment methods’ effectiveness differently as to ease of use. Based on the results, there was a
significant difference in the perception of the various age groups on the payment methods as to speed
(F (5, 2093) 159.83, p <0.01). As to the decision of hypothesis, the null hypothesis was rejected. This
meant that various age groups (18 years old and below, 19 to 20 years old, 21 to 25 years old, 31 to 40
years old, 41 to 50 years old, and 51 to 60 years old) perceived online payment methods’ effectiveness
differently as to speed.

In terms of differences in sex as to the effectiveness of payment methods for cost-efficiency, findings
showed that males (x = 4.36), and females (x = 4.31) significantly differed as to online payment
method for cost efficiency (t (2098) 2.40, p <0.05). As to the decision of hypothesis, the null
hypothesis was rejected. This means that male and female respondents had different views on the
effectiveness of online payment methods in terms cost efficiency.

Sex was also significantly different from payment methods in terms of speed. Based on the results,
males (x = 4.38) and females (x = 4.41) significantly had different perceptions of the effectiveness of
online payment methods for speed (t (2098) -3.59, p <0.05). As to the decision of hypothesis, the null
hypothesis was rejected. This means that male and female respondents had different views on the
effectiveness of online payment methods in terms speed.
However, there was no significant difference between sex and the effectiveness of online payment
methods to ease safety. Findings showed that males (x = 4.54), and females (x = 4.53) did not
significantly differ in their opinion of the effectiveness of online payment methods in terms safety, t
(2098) 2.50, p >0.05. As to the decision of hypothesis, the null hypothesis failed to reject. This meant
that male and female respondents held similar opinions on the effectiveness of online payment
methods for safety.

5. Conclusions
This study examined the effectiveness of online payment methods on higher education institutions in
Metro Manila. The researcher concluded that:
1. The parents were in middle adulthood and capable of providing financial support to their child
or children's education. The parents were more comfortable using credit and debit cards to pay
tuition fees for their child or children.

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2. The students were in emerging adulthood and were technologically savvy. They can utilize various
online payment methods for paying their tuition fees.
3. The students and parents recognized the advantages of using online payment methods for paying
tuition fees.
4. Despite the effectiveness of online payment methods, students and parents experienced
challenges and problems in using online payment methods. The abrupt implementation of online
payment methods resulted in confusion and unfamiliarity with online payment methods,
including the validation of online payment.
5. Different age groups had varying views and perspectives on the effectiveness of online payment
methods. In addition, diverse opinions and views from various gender groups emerged on the
effectiveness of online payment methods.
6. A strategic policy on implementing online payment methods must be established. This includes
roles and responsibilities of the student accounting office, students, and other offices involved in
the admission and enrollment of students.

6. Recommendations
Based on the findings and conclusions drawn, the researcher came up with the following
recommendation:
1. The school administrators should provide orientation to parents and students regarding online
payment methods. An online tutorial in using the apps is critical for the students and parents to
adopt online payment methods.
2. The accounting and cashier should improve the procedure or process specifically for online
payment transactions.
3. The school should officially recognize the online payment scheme as a regular alternative
payment for students and parents.
4. The school should promote online payment transactions as they save resources from filing
payment receipts and using facilities. In addition, social distancing should be encouraged to avoid
spreading disease or viruses.
5. Students and parents come from different backgrounds; it is recommended that the school
should allow the students and parents to choose a payment scheme they are comfortable and
convenient for them.
6. The private HEIs should develop strategic policies that address the concerns of the students
regarding the validation of online payment, the process of validation of student payment, and
role and responsibilities of concerned offices in enrolment.

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