Digital Financial Services Adoption among Entrepreneurs: Evidence for FinTech Education, Innovation, and Local Enterprise Competitiveness

Abstract

This mixed-method study examined the digital financial services gateways of micro, small, and medium entrepreneurs in Tandag City, Surigao del Sur, Philippines. Using survey data from 300 entrepreneurs and qualitative interview data from 50 participants, the study described the entrepreneurs’ socio-demographic profile, status of digital financial services utilization, perceived implementation of digital financial services, reasons for use, challenges encountered, and suggestedE interventions. The quantitative findings show that respondents were mostly female (173 or 57.7%), married (161 or 53.7%), college graduates (196 or 65.3%), and sole proprietors (204 or 68.0%). Wholesale and retail trade obtained the highest proportion among business activities (100 or 33.3%), and smartphones were the most frequently used gadgets. GCash ranked first among digital financial services gateways (163), while money transfer ranked first among digital features used (143). Despite this adoption, direct cash remained dominant across several payment categories, and 161 respondents reported no digital financial services training. Perceived implementation of digital financial services was generally high, while reasons for use were generally agreed upon by respondents. Challenges were moderately agreed upon, with lack of digital financial literacy, internet availability, lack of faith, lack of money, phishing, pharming, SIM card swap, spyware, and hacking emerging as major concerns in the original dataset. The qualitative analysis generated three major themes: transactional convenience and accessibility, infrastructural and trust-related barriers, and institutional support for literacy, connectivity, security, and affordability. The findings support the need for SUC-led digital financial literacy initiatives, LGU-financial institution collaboration, improved internet infrastructure, and user protection mechanisms for entrepreneurs.