Cashless Commerce: A Study on the Interplay between Digital Payments and Luxury Consumption among Private Enterprises’ Employees

Abstract

Purpose: To explore how digital payment (independent variable) systems influenced purchasing behaviors (dependent variable) among employees in private enterprises, finding that factors such as convenience, speed, and flexibility drive luxury spending by simplifying high-value transactions. Although security risks and impulsive spending threaten the cashless situation, the urgency of such risks requires improved safeguards and better financial literacy. Methodology: Stratified random sampling was applied by dividing the number of employees into distinct strata based on industry. A sample size was proportionally allocated to each stratum, ensuring equal representation from each category. This research was conducted in Iba, Zambales, Philippines. Iba is one of the 13 towns that make up the Zambales province. A total of 509 responses were gathered, based on the sampling size of at least 385, which was determined using Raosoft’s sample size calculator. Google Forms served as the principal instrumentation and data-gathering procedure, but paper questionnaires were also provided for those without Internet access. Findings: This study found that digital payments significantly enhanced the convenience and ease of luxury consumption, particularly among employees in private enterprises. They appreciated the speed and simplicity of cashless transactions, eliminating the need to carry cash. Furthermore, these payment processes offered flexibility through options such as installment plans. For many, the seamless approach to making significant purchases hassle-free made digital payments appealing in today's fast-paced and technology-driven world. Contribution to Theory, Policy, and Practice: It was important to strengthen security, enhance consumer education, and promote access to a safer, more responsible, cashless economy. The study recommended reinforcing security measures, enhancing consumer education, and ensuring broader access to foster a safer, more accountable, cashless economy.