Republic of the Philippines

North Eastern Mindanao State University

Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

GCash: A Case Study on Revolutionizing Digital Payments in the Philippines

In Partial Fulfillment
Of the Requirements in
eGE1 – Living in the IT Era

Presented to
Ms. Inah Diane Orbeta
Faculty of the North Eastern Mindanao State University – Marihatag Offsite

Submitted by:
Edelene Roble
Meludie Quezada
Daniela Silao
Taddy Rivas
BSBA-2FM-B

October 14, 2024

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Table of Contents

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 3

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...4

Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .5

Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...6

Recommendation and Implementation Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..7

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..8

Exhibits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . …9

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Executive Summary

This study aims to investigate the development and impact of GCash, a mobile wallet,
on the financial ecosystem of the Philippines. It seeks to understand how GCash has
evolved from a basic digital payment tool into a significant driver of financial inclusion and
economic change, reshaping how Filipinos manage and conduct financial transactions.

The study tackles the issue of limited financial inclusion and the inefficiencies of a
predominantly cash-based economy in the Philippines. It highlights how GCash has
addressed these challenges by offering a comprehensive platform for digital transactions,
including payments, transfers, and mobile commerce, thereby facilitating a shift towards a
cashless society and improving financial accessibility for a broad segment of the
population.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Introduction

One of the most popular saying among Filipinos is “I-GCash no na ‘yan”

emphasizes the the rapid increase of GCash, particularly during the pandemic of 2020 to
2022. Despite its inception in 2004, GCash became widely popular in the Philippines as a
result of the Bangko Sentral ng Pilipinas' drive for mobile transactions (Endo, 2020).
Cacas et al. (1970) emphasized the central bank's promotion of Filipinos to use mobile
payments, highlighting its role in creating digital financial solutions. Smart Communications
created an SMS-based fund transfer in 2002, later rebranded as PayMaya, and Globe
Telecom launched GCash in 2004, redefining cashless transactions for TM and Globe
consumers (Crisanto, 2017).

This study is prompted by the need to understand how GCash has evolved from a
simple mobile wallet into a comprehensive financial tool that influences economic
behaviors and societal norms. The primary problem addressed in this study is the limited
financial inclusion and inefficiencies of a predominantly cash-based economy in the
Philippines.

Key factors to consider in developing recommendations include the involvement of

stakeholders such as GCash users, financial institutions, regulatory bodies like the Bangko
Sentral ng Pilipinas, and telecommunications companies such as Globe Telecom. The
study also takes into account the historical development of GCash since its inception in
2004, with a focus on its rapid growth during the COVID-19 pandemic. Additionally,
challenges such as digital literacy gaps, technological barriers, and competitive pressures
from other digital wallets are critical factors.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Analysis

The primary problem faced by the Philippines is the limited financial inclusion and
inefficiencies of a predominantly cash-based economy. Several factors contribute to this
issue, including digital literacy gaps, inadequate technological infrastructure, regulatory
challenges, economic disparities, and trust issues regarding digital financial services. The
specific issues faced by GCash and its users were then clearly defined, leading to the
development of targeted strategies such as enhancing digital literacy programs and
improving technological infrastructure. A detailed implementation plan was created,
outlining the steps, timelines, and resources required to execute the recommended
strategies. Finally, metrics and processes were established to monitor the implementation
progress and evaluate the effectiveness of the strategies.

The study applies several course concepts to provide a comprehensive analysis of

GCash’s impact. Financial inclusion theory is used to examine how GCash provides
access to financial services for underserved populations. Technology adoption models
help understand the factors influencing the acceptance and use of GCash among different
demographic groups. Strategic management principles guide the development of
recommendations and implementation plans, focusing on stakeholder engagement,
resource allocation, and performance measurement. Insights from behavioral economics
are also used to understand user behavior and trust issues related to digital financial
services. By integrating these concepts, the study offers actionable recommendations to
enhance GCash’s effectiveness and reach, ultimately contributing to a more inclusive and
efficient financial ecosystem in the Philippines.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Alternatives

In analyzing GCash’s role in revolutionizing digital payments in the Philippines,

several alternatives are available for decision-makers to consider. These alternatives
include:

1. Expanding GCash’s Services: This involves introducing new features and services,
such as investment options, insurance products, and international remittances, to
attract a broader user base and increase engagement.

2. Strengthening Partnerships: Forming strategic alliances with more financial

institutions, retail partners, and government agencies to enhance service offerings and
improve user convenience.

3. Enhancing Digital Literacy Programs: Implementing comprehensive educational

initiatives to improve digital literacy among users, ensuring they can fully utilize
GCash’s features.

4. Improving Technological Infrastructure: Investing in technology to enhance the

platform’s reliability, security, and user experience, including better internet
connectivity and mobile network coverage.

To evaluate these alternatives, decision-makers should consider several criteria.

The impact on financial inclusion should be measured to determine how effectively each
alternative addresses the needs of underserved populations. User adoption and
engagement potential are crucial for attracting new users and increasing engagement
among existing ones.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Recommendation and Implementation Plan

The study recommends enhancing digital literacy programs, improving technological

infrastructure, and fostering strategic partnerships to further expand GCash’s reach and
effectiveness. To support these recommendations, the report is structured as follows: an
introduction providing an overview of GCash and the context of the study; a literature
review examining existing research on digital payments and financial inclusion; a
methodology section describing the research methods used to gather data and analyze
GCash’s impact; findings presenting the study’s results on GCash’s role in promoting
financial inclusion and economic change; a discussion analyzing the findings in relation to
the broader financial landscape and societal impacts; detailed recommendations based on
the study’s findings; and a conclusion summarizing the study and its implications for the
future of digital payments in the Philippines.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Conclusion

In this case study, we have explored how GCash has revolutionized digital
payments in the Philippines, addressing the critical issue of limited financial inclusion and
the inefficiencies of a cash-based economy. The most important point of the report is that
GCash has significantly impacted the financial landscape by providing accessible and
versatile digital payment solutions, thereby promoting financial inclusion and economic
change.

We recommend enhancing digital literacy programs, improving technological

infrastructure, and fostering strategic partnerships to further expand GCash’s reach and
effectiveness.Implementing these recommendations is crucial because they address the
core challenges hindering the widespread adoption and effective use of GCash.
Enhancing digital literacy ensures that more Filipinos can utilize GCash’s features
effectively. Improving technological infrastructure will enhance the platform’s reliability and
user experience. Strategic partnerships will expand service offerings and improve user
convenience.

If these recommendations are successfully implemented, the benefits will be substantial.

Enhanced digital literacy will lead to higher user adoption and engagement. Improved
technological infrastructure will result in a more reliable and secure platform, increasing
user trust. Strategic partnerships will broaden GCash’s service offerings, making it a more
comprehensive financial tool. Overall, these changes will drive greater financial inclusion,
economic growth, and a more efficient digital payments ecosystem in the Philippines.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

Exhibits

The following exhibits provide detailed information to support the recommendations

and implementation plan for GCash.

Exhibit 1. ONLINE PAYERS- The campaign appealed to online payers to send and
receive money, pay bills and make other payments using the GCash app by designing
creatives that are based on location and other seamless payment factors such as faster
interfaces journey paths.

Exhibit 2. ONLINE SHOPPERS- Online Shoppers were targeted with ads showcasing the
convenience of using the app to purchase items online, be it through e-commerce apps
such as Lazada, or through online Instagram sellers.

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 Republic of the Philippines
North Eastern Mindanao State University
Poblacion, Marihatag Surigao Del Sur, 8306
Marihatag Offsite
COLLEGE OF BUSINESS AND MANAGEMENT

References

Afable, F. P. (2024). GCash: Revolutionizing Digital Payments in the Philippines and

Beyond. SSRN. Available at SSRN: https://ssrn.com/abstract=4871527 or
http://dx.doi.org/10.2139/ssrn.4871527

Cudis, C. (2019). GCash Strengthens Dominance in PH: An Article Summary. BMPlus.

Retrievedfromhttps://www.researchgate.net/profile/Flordeliza-P
Afable/publication/381628610_GCash_Revolutionizing_Digital_Payments_in_the_
Philippines_and_Beyond/links/6691fa74b15ba55907568659/GCash-
Revolutionizing-Digital-Payments-in-the-Philippines-and-Beyond.pdf

Philippine Daily Inquirer. (2023). The Role of Mobile Wallets in Promoting Cashless
Transactions: A Case Study. Retrieved from
https://link.springer.com/chapter/10.1007/978-981-97-3409-2_14

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