The impact of GCash on business sales and transactions

by: Sophia Aliermo and Julia Dominique Yancha

The popularity of GCash as a mode of payment due to an easy-to-use interface has revolutionized the way many businesses operate, leading to both convenience and complications in transactions.

Angkong Dimsum House, one of the popular food businesses along Dapitan St. in the University of Santo Tomas (UST) reported that more students came to eat when they started using GCash as a mode of payment in December 2022.

“Pag lunch break ng mga estudyante, mas marami bumibili gamit GCash,” Jovelline, Angkong’s cashier said.

Additionally, Jovelline stated that it has also become convenient for her to accept GCash payments, as it is a quicker process than cash.

“Mas mabilis, lalo na pag wala pa kaming panukli,” she said.

With crises like COVID-19 pandemic limiting movement, cashless transactions have made it easier for businesses to receive and handle cash flow.

From only about 20 million users in 2019, GCash now boasts 81 million active users and 2.5 million sellers and merchants across the Philippines.

However, a few businesses – mostly smaller ones – continue to operate without one.

Mark, one of the staff selling in a shawarma cart in P.Noval, revealed that there have been numerous instances where people backed out from buying because he did not accept payments through GCash.

He expressed his dismay, claiming that if only he had one, he could have made a lot more sales, especially given that he not only parks his cart in P. Noval.

He sometimes parks in Dapitan, where students would also often ask if he accepts GCash payments.

“Sinusubukan ko gumawa kaso yung ID ko di talaga tinatanggap eh. Ilang beses na. Wala pa kasi akong Philippine ID eh,” Mark said, explaining that in order to fully verify his account, he needs to submit a valid ID.

In the meanwhile, there are some businesses who reported to be doing fine without having integrated GCash as a mode of payment.

Mang Boy, a street food vendor along Dapitan St. has said that the lack of GCash as an option did not affect his business.

“Madalang din naman yung mga bumibili magbayad gamit ng G-Cash,” he said.

When asked about why Mang Boy does not have GCash as an option, he stated that it was because he did not know how to set it up in the first place, but he said that he is hoping to put it up as an option with the help of his daughter.

Keeping GCash open as an option

Inst. Nicole Cruz, Chair of UST’s Department of Entrepreneurship has stated that it is important for businesses to adapt to current trends in order to maximize their opportunities.

“It is already necessary for most businesses to integrate this mode of payment. In terms of the trend, dapat at least meron ka. ‘Pag wala, it can limit you with the opportunity to sell more to other people that are changing their behavior in terms of payment,” he said.

Cruz also stated that keeping these payment options available will be able to cater to different people’s preferences.

“People nowadays, including ako, mas gusto ko nag-pa-pay via Gcash kasi ayaw ko na ng may hawak na pera. However in some cases, it can be dependent on [mobile] data, hindi naman lahat ng tao naca-cater. So having an option to pay in cash and having an option to pay in that mode of payment is actually beneficial for the business as long as those two are available. If GCash lang or cash lang, you may not be able to capture the market,” he said.

Challenges and Risks

Accompanying the convenience brought by GCash are also risks and challenges commonly experienced in digital platforms, such as bugs and hacks.

On May 9, 2023, GCash had an unexpected downtime, with some users even reporting deductions from their accounts.

GCash has since then apologized and fixed the problem, but there are some serious risks when using e-wallets.

“There's also consideration in terms of phishing for information. Not all people are aware of the security and safety of using your device for that kind of transaction so sometimes those people who are not aware, click lang ng click and eventually it is getting their information katulad nung dati na may nawalan ng pera. It is part of that,” Cruz said.

Cruz then noted that it is important to take certain precautions to not be a victim of fraud or hacks by being cautious and informed.

“Para maiwasan nila, pag-aralan nila. Tapos avoid integrating their personal Gcash in their business Gcash kasi minsan nagkakaroon din ng overlap ‘yun. Minsan kasi yung integration na gagamitin mo, using Facebook ba? Using Google? Everything that you connect with those platforms, parang hina-house mo na yung data mo sa kanila. Pagka nagkaron ng mga security breech sa dalawang yun, dun sa mga inintegrate natin na yun, there’s chances na magamit yung data mo,” he said.