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American Journal of  Economics and 
Business Innovation (AJEBI)

Contactless Payments in Travel and Tourism in Philippines: from a Technological 
Acceptance Model 

M.C.C. Park1*, I. Manalili1, T. Magtoto1, R. Martinez1, J. Solis, C. Chua1

Volume 1 Issue 2, Year 2022
ISSN: 2831-5588 (Online)

DOI: https://doi.org/10.54536/ajebi.v1i2.264
https://journals.e-palli.com/home/index.php/ajebi

Article Information ABSTRACT

Received: May 13, 2022

Accepted: May 21, 2022

Published: May 24, 2022

Technological advancement has made significant strides in bringing new developments to 
meet people’s diverse needs and gratifications. With the arrival of  wireless and communi-
cation technology, a slew of  new payment and transaction possibilities dubbed “contactless 
payments” emerged and are now being adopted by most industries, including travel and 
tourism. Thus, the study examines the influencing factors for the acceptance of  contactless 
payments in travel and tourism among residents of  Pampanga, Philippines. The study em-
ployed a correlational design, and data were collected from 220 respondents using an online 
questionnaire employing convenience and snowball sampling. ANOVA and multiple linear 
regression were used to analyze the collected data. All of  the influencing factors, namely 
perceived usefulness, perceived ease of  use, perceived trust, and awareness of  technology, 
were found to have a significant relationship with respondents’ behavioral intention. This 
indicates that when making transactions in travel and tourism, contactless payment users are 
more influenced and encouraged to use contactless payment when they perceive that the 
system is easy to use, requires little effort, and is trustworthy.

Keywords
Acceptance level, Contactless 
Payment, Travel, Tourism, 
TAM E-payment.

1 Angeles University Foundation, Angeles City Philippines.
* Corresponding author’s e-mail: park.mariacecilia@auf.edu.ph

INTRODUCTION
People currently live in a fast-changing, technologically 
advanced society where digital technology is integral 
to their daily lives. Allen (2019) indicated that through 
advances in technology, people have been able to 
interact, acquire information, and solve problems that are 
important to their lives in a much more convenient way. 
The increasing number of  dependencies on technology has 
brought people new forms of  innovations, one of  which 
is the rise of  wireless and communication technology. 
With the emergence of  wireless and communication 
technology, many new payment and transaction options 
were introduced, which we know today as “contactless 
payments” (Hjelm & Brzoska, 2020).
Contactless payment, which some banks and retailers may 
also refer to as “tap-and-go” or “tap,” was introduced 
as a result of  the development of  radio-frequency 
identification (RFID) and Near-Field Communications 
(NFC), which allow people to connect devices by waving 
or tapping them near connect and share data quickly (Xuan 
et al., 2018). Contactless payments are growing at the 
quickest rate compared to other payment methods, owing 
primarily to the rising use of  smartphones in recent times 
(Kongaut & Lis, 2017: Karim et al., 2022). Applications 
such as Apple Pay, Samsung Pay, and others have been 
widely adopted and are now gradually replacing the use 
of  cards and cash in the wallet. Moreover, Cristobal et 
al. (2018) stated that a cashless transaction would be 
one in which payment is performed using a smartphone 
method. Even though the technology is already available 
for more than a decade, mobile payment has only been 
widely embraced in a few countries, notably Japan, South 
Korea, Kenya, and the Philippines (Kongaut & Lis, 2017).
Contactless payment was first launched in South Korea in 

1995, called the UPass, used for the Seoul Bus Transport 
Association (Jones, 2020). This has paved the way for 
improved telecommunication technologies in recent years, 
making people aware of  mobile banking and application-
based mobile payment techniques, transformations, and 
innovations that ease routine economic transactions with 
fewer cash options (Passah & Kumar, 2019). Since then, it 
has spread out around the world, making other countries 
adopt the use of  contactless payments for different modes 
of  payment. However, in the Philippines, people were 
initially hesitant to adopt e-wallets and other contactless 
payment alternatives. It was not until the mid-2010s that 
usage began to change, especially with the introduction 
of  PayMaya Philippines and GCash, which aided the use 
of  Smart e-money in the country (Isles, 2020).
In many aspects, the innovation of  digital and cashless 
economy generation has transformed the growth of  the 
travel and tourism industry to experience a new boom 
in the booking and settlement of  invoices through 
cashless methods (Bergareche, 2019). Tourism products 
and services such as accommodation, transportation, 
restaurants, shopping destinations, related industries, and 
other entertainment facilities for tourists are available 
at the lowest possible price through bank cards, mobile 
wallets, points of  sale, online banking, and other mobile 
technologies. Given that mobile tourist consumers have 
quite different habits, with the majority preferring to book 
and pay via mobile phone or another wireless device, this 
suggests that they have viewed contactless payment as 
one of  the quickest, easiest, and most secured payment 
methods available to consumers today (Square, 2018).  
Wang & Lin (2018) stated that contactless payment is a 
game-changing advancement in transaction processing. 
People could indeed speak of  a popular uprising in 

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the distribution of  tourism products, interaction with 
consumers and between business entities, creating a 
destination image, getting information, and reducing the 
rates of  tourism products and transportation. 
As Filipinos adopt health and safety measures under the 
new normal, a cashless transaction system is increasingly 
emerging as the preferred form of  payment for consumers 
(Baidwan, 2021). When an epidemic struck, 52% of  
Filipinos shopped online for the first-time using apps 
and websites, and 43% made their first online purchase 
via social media platforms (Visa, 2019). When borders 
reopen, Filipinos expect to spend most of  their money 
on travel. According to Visa Philippines (2019), 30% of  
Filipinos are looking forward to domestic travel, and 22% 
want to spend money on foreign travel after Covid-19.
In line with its relevance to the trends and innovation in 
the travel and tourism sector, the researchers aimed to 
examine the level of  acceptance of  contactless payments 
in travel and tourism among residents of  Pampanga, 
Philippines. Specifically, the study examined the 
perception of  the respondents on the influencing factors 
(perceived usefulness, perceived ease of  use, perceived 
trust, awareness of  technology) of  accepting contactless 
payments and determine if  there is a significant 
relationship between the influencing factors in the 
acceptance of  contactless payments and the respondents’ 
behavioral intention. 

LITERATURE REVIEW 
This study is anchored on the Technology Acceptance 
Model (TAM). It enables researchers to make statements 
about the possible acceptance or rejection of  new 
technology (Davis, 1989, as cited by Ozturen, 2018). 
Ahmad (2018) also stated that the TAM model went 
through several stages of  development and was eventually 
expanded. As a result, Ozturen (2018) revised the 
original TAM model to include awareness of  technology 
alongside PEOU (perceived ease of  use), PU (perceived 
usefulness), and Trust as a variable that is affected directly 
by behavioral intention, which this study used.
Perceived Usefulness (PU)
The degree to which a person believes that using mobile 
payment will boost their performance in daily activities in 
their studies is characterized as perceived usefulness (PU). 
This also demonstrates how mobile payment services 
can assist customers in achieving task-related goals like 
efficiency and effectiveness (Mun et al., 2017). The use of  
a service that is believed to be helpful when conducting 
payment transactions is referred to as PU in the context 
of  mobile payment service adoption. A consumer may 
believe that mobile payment services will allow them 
to pay using only a mobile phone, eliminating the need 
to carry cash. Liébana-Cabanillas et al. (2018) found 
that PU is a powerful predictor of  behavioral intention 
to use mobile payment services in a recent study. PU 
was a substantial predictor of  differences between 
adopters and non-adopters (Phonthanukitithaworn et 
al., 2016). Kasilingam (2020) stated that the acceptance 

of  information technology is based on its usefulness. 
Theoretically, this approach may be used for mobile 
shopping since perceived usefulness significantly impacts 
behavioral intentions toward mobile buying. Consumers 
are more inclined to adopt a shopping channel if  they 
believe they would benefit from it. According to To 
& Trinh (2020), their impression of  its utility heavily 
influences a consumer’s intention to use a system. 
When customers find mobile services convenient for 
their transactions, they will utilize them more. Based on 
all the above inferences, the first hypothesis is worded 
accordingly.
Hypothesis 1 (H1)
There is a significant relationship between perceived 
usefulness and the respondents’ behavioral intention.
Perceived Ease of  Use (PEOU)
The perceived ease of  use (PEOU) is a significant factor 
in a user’s behavioral intention to embrace and employ 
technology; it has been demonstrated that PEOU is 
critical in influencing customers’ purchasing intentions 
(Chawla & Joshi, 2020). According to Mun et al. (2017), 
the degree to which a person feels that utilizing the system 
will require no mental or physical effort is referred to as 
PEOU. Adopted from TAM (Technology Acceptance 
Model), the variable “perceived ease of  use” has been 
extensively researched to identify its effects on customer 
attitudes (Mensah, 2020). Previous research investigations 
have found that PEOU has a substantial relationship 
with customers’ intentions to utilize or accept technology 
items (Sinha et al., 2019). PEOU has a significant effect 
on consumer intention, and it is suggested that this is 
because of  customers’ pleasant experience with mobile 
social media, which directs them to utilize it readily for 
shopping activities (Leong et al., 2018). According to 
To & Trinh (2021), the perceived ease of  use of  digital 
payment resulted in a high degree of  positive behavioral 
intention. This is also consistent with previous TAM 
research (Dwivedi et al., 2019; Liébana-Cabanillas et 
al., 2018). Therefore, PEOU is anticipated to affect 
the behavioral intention positively to accept or utilize 
contactless payment. The easier use of  technology will 
make it the preferred payment method for customers to 
conduct transactions. Hence, the following hypothesis is 
deduced in this study:
Hypothesis 2 (H2): 
There is a significant relationship between perceived ease 
of  use and the respondents’ behavioral intention.
Perceived Trust (TRUST)
According to Wong & Mo (2019), perceived trust is the 
hypothesis between perceived security and perceived 
risk. Furthermore, to have a good perception of  mobile 
payment, the study determines the connection between 
customer intentions of  using mobile payment in Hong 
Kong. Customers are usually concerned about the level of  
security and privacy when making transactions, especially 
when conducting payment through a mobile phone or the 
internet; they see trust as secured and free of  worry where 
their personal information will not be hacked or shared 

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with unauthorized parties (To & Trinh 2021). Therefore, 
there should be security improvements to impact trust in 
mobile payment systems (Wong & Mo 2019). Moreover, 
Perceived trust is crucial in intensifying the consumers’ 
purchasing decisions because once consumers begin 
trusting a system or a service provider, they will continually 
use the application to purchase products (Yang et al., 
2021). It is similar to the previous research by Wilson 
(2019) stating that perceived trust had a positive impact 
on repurchase intention in the Indonesian E-Commerce 
Industry. Furthermore, the study of  Eneizan et al. (2020) 
stated that trust influences the attitudes of  consumers and 
their perception when visiting a website confirming that 
trust in the website has a positive impact on consumers’ 
attitudes toward their online shopping decisions. Based 
on the following depictions, the researchers proposed the 
following hypothesis.
Hypothesis 3 (H3)
There is a significant relationship between perceived trust 
and the respondents’ behavioral intention.
Awareness in Technology (AWARE)
Kammerzelt (2018) stated that technology is frequently 

associated with advancements in the sphere of  
communications. Technology is defined as applying 
scientific understanding to achieve a specific goal, whether 
in the industry or in our daily life. Individuals familiar 
with the features and functions of  diverse payment 
methods or technological innovations are more inclined 
to adapt to the new developments in payment methods 
(Boden et al., 2020). The capacity to utilize a particular 
technology is characterized as a mix of  the individual’s 
experience, training, and understanding of  the technology. 
A higher level of  confidence in one’s capability of  using 
technology will result in a higher level of  personal drive 
to use it. Users must, however, have technological skills, a 
smartphone, and the availability of  technology. Thailand 
promotes e-payment on how easy it is to use, saving 
money and effort. The public must also be educated on 
the advantages and disadvantages of  cashless transactions 
(Yakean, 2020). Based on these prior study findings, the 
researchers suggested the following hypothesis.
Hypothesis 4 (H4) 
There is a significant relationship between awareness of  
technology and the respondents’ behavioral intention.

Figure 1: Theoretical Model.

MATERIALS AND METHODS
Research Design 
Correlational research is used as the study’s design. 
According to Curtis et al. (2016), correlational research 
attempts to discover connections among two or more 
variables. Defined, it explores if  an increase or decrease 
in one variable correlates to an increase or decrease in 
another (Bhandari, 2021). This method was used to 
examine if  there is a significant relationship between 
the influencing factors in the acceptance of  contactless 
payment and the respondents’ behavioral intention.
Study Participants
The study included 220 participants who are contactless 
payment users who are at least 21 years old and are 
currently residing in the province of  Pampanga. To ensure 
that respondents are qualified to answer, a filter question 
was asked at the start of  the questionnaire. (please see 
appendix A for the profile of  the respondents)
Sample Size 
The sample size was determined using the G Power since 
the population for the study is unknown. With an effect 

size of  0.5, a margin of  error of  0.05, and a power of  
0.80, the researchers acquired a minimum sample of  
128 participants. However, a total of  220 respondents 
participated in the study. Due to the limited recordings of  
the economic capabilities and population of  contactless 
transaction users in Pampanga in travel and tourism, 
it was impossible to draw the exact sampling frame in 
this study’s population. Nevertheless, to ensure that the 
sample data are represented and robust enough to analyze, 
Roscoe (1975, as cited by Wachyuni & Kusumaningrum, 
2020; Mun et al., 2017) stated that for most research, 
the appropriate rule of  thumb for sample size should 
be greater than 30 and smaller than 500. Additionally, 
Hjelm & Brzoska (2020) also articulated that there are no 
restrictions and grand rules in designing a perfect sample 
size, researchers could be flexible with their desired 
structure, but a larger sample size allows a study to get 
more accurate responses, as stated in the central limit 
theorem.
Study Instrument
The study utilized questionnaires as a research instrument. 
The questionnaire was adapted from Ozturen’s (2018) 
study titled “Acceptance of  Mobile Payment Technologies 

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by The Travelers Visiting North Cyprus”. The researchers 
sought permission from the author. The questionnaire 
was modified to suit the current locale of  the study by 
including questions about the spending habits of  the 
respondents in making contactless transactions in travel 
and tourism, as well as modifying the items in each 
influencing factor to fit the study’s objectives best.
A pre-testing was conducted to examine the questionnaire’s 
construct’s reliability and validity. The pre-testing was 
carried out on 30 respondents wherein their responses 
to the initial construct were collated, carefully tabulated, 
and examined using Cronbach’s α reliability measure. 
Cronbach’s alpha (CA) is used in testing construct 
reliability and internal consistency of  data (Yang et al., 
2021). In assessing the Cronbach’s Alpha, the criterion 
is that all items must appear to have a value equal to or 
higher than the proposed cut-off  of  0.70 to indicate 
adequate reliability of  the construct (Alzubi et al., 2017; 
Gupta et al.,2021). As presented in Table 2, Cronbach’s 
α values in each construct exceed the recommended 
threshold of  0.70, which were between 0.804 as the 
lowest and 0.924 as the highest, thus confirming that all 
the values of  composite reliability satisfied the criterion, 
indicating that all factors in the study were highly reliable, 
adequate and consistent.

Table 1: Construct Test of  Reliability
Construct Cronbach’s 

Alpha
Number 
of  Items

Perceived Usefulness (PU) 0.917 4
Perceived Ease of  Use 
(PEOU)

0.924 3

Perceived Trust (TRUST) 0.881 5
Awareness in Technology 
(AWARE)

0.804 2

Behavioral Intention (BI) 0.862 3
Due to the current protocol and face-to-face restrictions, 
the researchers conducted an online survey to obtain 
data. The questionnaire was disseminated through email 

and other online platforms. The questionnaire was 
divided into three parts. The first part was dedicated 
to the demographic profile of  the respondents, the 
second part was the respondents’ experience with the 
use of  contactless platforms, and the third part was the 
respondents’ perception of  the factors influencing the 
acceptance of  contactless payment in travel and tourism. 
Sampling technique 
The researchers employed snowball and convenience 
sampling as the study’s sampling technique. According 
to Kirchherr & Charles (2018), these two sampling 
techniques help the researchers to have adequate data 
to examine and reach conclusive results. Convenience 
sampling is among the most frequent types of  non-
probabilistic sampling, which is used to collect samples 
that are conveniently available at a particular location or 
through internet service (Edgar & Manz, 2017), while 
the snowball sampling technique is used to establish a 
pool of  respondents for a research study by referring 
to individuals who share certain features of  interest in 
research with the sample population (Frey, 2018). These 
sampling techniques are suitable for the study and allow 
the researchers to reach the target audience as it is purely 
based on referrals and availability.
Statistical Analysis of  Data
The data were treated using inferential statistics, 
specifically Multiple regression and Analysis of  Variance 
(ANOVA). These two statistical treatments were used 
because of  their essential roles in the data analysis.

RESULT AND DISCUSSION
This study sought to examine the influencing factors 
for the acceptance of  contactless payments in travel 
and tourism among residents of  Pampanga, Philippines, 
particularly the significant relationship between the 
influencing factors, namely, awareness of  contactless 
payment technology, perceived usefulness, perceived ease 
of  use, and perceived trust to the respondents’ behavioral 
intention.
Table 3 details the respondents’ use of  contactless 

Table 2: Respondents’ Usage of  Contactless Payment 
Question Items and Options Frequency Rank
What contactless payment platforms do you prefer for travel and tourism transactions?
Gcash 171 1st
Credit/Debit Card 143 2nd
Mobile banking 97 3rd
Paymaya 64 4th
Paypal 39 5th
What types of  travel and tourism products and services do you typically buy using contactless payment?
Restaurants and other food establishments 130 1st
Transportation 122 2nd
Accommodations 98 3rd
Shopping Center or souvenir outlets 80 4th
Others (Incidentals) 42 5th
Entertainment Facilities 38 6th
Source: Data from respondents

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payment technologies in travel and tourism. For these 
questions, the respondents were required to give multiple 
responses. The study revealed that Gcash is the mostly 
used contactless payment platform, followed by credit/
debit cards. Moreover, the study shows the most common 
travel and tourism products and services typically availed 
by the respondents using contactless payments.  
Table 5 shows the respondents’ perceptions of  the 
influencing factors on the acceptance of  contactless 
payments in travel and tourism. For this purpose, 
respondents were asked to indicate their level of  
agreement or disagreement on the different influencing 
factors mentioned, with 6 being the highest (strongly 
agree), and 1 being the lowest (strongly disagree). The 
range of  weighted means for the six-point Likert scale 
and its interpretation is presented in table 4 below. It was 
used in identifying and describing the collected data for 
the present study regarding the factors influencing the 
level of  acceptance of  contactless payments. The ranges 
of  the weighted means and their interpretation were 
adapted from the study of  Vate-U-Lan and Masouras 
(2018) titled “Thriving social network for communication 

Table 3: Range of  weighted means and interpretation
Scale 
value

Range of  
weighted means

Interpretation

1 1.00 – 1.82 Strongly Disagree (SD)

2 1.83 – 2.66 Disagree (D)
3 2.67 – 3.50 Disagree to a certain extent 

(DCE)
4 3.51 – 4.32 Agree to a certain extent 

(ACE)
5 4.33 – 5.16 Agree (A)

6 5.17 – 6.00 Strongly Agree (SA)

on e-learning: Exploring gender differences in attitudes.” 
The study’s findings revealed that overall awareness 
of  technology has a mean score of  5.58, perceived 
usefulness is 5.60, and perceived ease of  use is 5.45, with 
a descriptive rating of  strongly agree. With a descriptive 
rating of  agree, perceived trust gets an overall mean score 
of  4.88. Respondents perceived contactless payments as 
useful in traveling and purchasing tourism products and 

Table 4: Respondents’ Perception of  the Factors Influencing the Acceptance of  Contactless Payment in Travel and 
Tourism
Perceived Usefulness (Pu) Mean Standard Deviation 
Using contactless payment is useful in traveling and purchasing tourism products 
and services.

5.62 0.734

Using contactless payment helps improve my travel experience. 5.57 0.760
Using contactless payment enhances the effectiveness of  my travel transactions, 
especially in terms of  convenience, accessibility, and keeping digital receipts.

5.60 0.755

Using contactless payment in traveling provides a useful service to me. 5.62 0.747
Perceived Ease of  Use (Peou)
I find the contactless payment system clear and understandable. 5.49 0.775
I find a contactless payment system easy to use when traveling and purchasing 
tourism products and services

5.49 0.781

Using contactless transactions in travel and tourism does not require a lot of  mental effort. 5.38 0.867

Perceived Trust (Trust)
The risk of  an unauthorized third party overseeing the contactless transaction 
process in travel and tourism is low.

4.78 1.12

I am willing to pay extra charges when making contactless transactions in travel and tourism. 4.93 1.03
The risk of  unauthorized usage of  information (e.g., personal information, payment 
amount) is minimal when using contactless transactions in traveling.

4.74 1.09

The risk of  unauthorized billing of  information when traveling or purchasing 
tourism products and services (e.g., credit card numbers, bank account data) is low 
when using contactless payment systems.

4.82 1.11

I trust the contactless payment system in traveling and conducting tourism payment 
transactions.

5.10 0.920

Awareness In Technology (Aware)
I am aware that I can use contactless transactions in traveling and purchasing tourism 
products and services.

5.60 0.745

I am aware of  the functions and capabilities of  contactless payment systems when 
making transactions in my travel.

5.55 0.773

Behavioral Intention

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I intend to transact with Tourism-Related establishments, retailers, or merchants that 
accept contactless transactions when traveling.

5.30 0.819

I intend to use a contactless payment system as much as possible when traveling. 5.29 0.851

I recommend others to use contactless payment technology in their travel and 
tourism service and product purchases.

5.38 0.819

Source: Data from Respondents

services. Another objective of  this study is to determine 
if  the influencing factors on the acceptance of  contactless 
payments are significant to respondents’ behavioral 
intention. Using the analysis of  variance (ANOVA), F = 
89.445 with p-value = 0.000, results showed a significant 

relationship. Therefore, since the p-value is less than the 
significance level of  0.05, it can be concluded that there 
is a significant relationship between the various variables 
(AWARE, PU, PEOU, and TRUST) and the behavioral 
intention of  the respondents. A second statistical test was 

Table 5: Test of  Significant Relationship using ANOVA
Model Sum of  Squares df Mean Square F Sig.
Regression 82.213 4 20.553 89.445 0.000a
Residual 49.404 215 0.230
Total 131.617 219
a. Predictors: (Constant), Perceived Trust, Technological Awareness, Perceived Ease of  Use, Perceived Usefulness
b. Dependent Variable: Behavioral Intention
Correlation is significant at 0.05

conducted to confirm the significant relationship between 
the variables. Table 7 shows the result of  the relationship 
between the influencing factors and respondents’ 
behavioral intention using Multiple Regression analysis. 
Results revealed that perceived usefulness (t = 3.081, p 
= 0.002), perceived ease of  use (t = 2.760, p = 0.006), 
perceived trust (t = 6.168, p = 0.000), and technological 
awareness (t = 2.410, p = 0.017), have significant 
relationship to behavioral intention at 0.05 significance 

level. Thus, as perceived usefulness, perceived ease of  
use, perceived trust, and technological awareness increase, 
the respondents’ behavioral intention likewise increases. 
Another test was conducted using regression analysis to 
validate the strength of  significance. Table 8 shows that R 
= 0.790 is with adjusted R-square = 0.618. Thus, 61.8% 
of  the behavioral intention is described by influencing 
factors in the acceptance of  contactless payments. 

Table 6: Test of  Significant Relationship among Variables using Multiple Linear Regression
Model Unstandardized Coefficients Standardized Coefficients F Sig.

B Std. Error Beta
(Constant) 0.371 0.272 1.361 0.175
Perceived Usefulness 0.265 0.086 0.242 3.081 0.002
Perceived Ease of  Use 0.215 0.078 0.207 2.760 0.006
Perceived Trust 0.255 0.041 0.311 6.168 0.000
Awareness in Technology 0.188 0.078 0.178 2.410 0.017
a. Dependent Variable: Behavioral Intention
Correlation is significant at 0.05 level

Table 7: Strength of  Relationship

Model R R Square Adjusted R Square Std. error of  the Estimate
1 0.790a 0.625 0.618 0.47936
a. Predictors: (Constant), Perceived Trust, Technological Awareness, Perceived Ease of  Use, Perceived Usefulness

DISCUSSION 
The acceptance of  contactless payment systems in travel 
and tourism among residents of  Pampanga is investigated 
in this study. Contactless payment is accepted by people if  
they are aware of  using it, the system is beneficial, easy to 
use, and they trust it. If  contactless payment is permitted, 
travelers are more likely to spend more (The World Travel 
and Tourism Council, 2019). Perceived usefulness (PU), is 

significantly associated with the respondents’ behavioral 
intention. Several previous studies have found perceived 
usefulness to be a key influencing factor in mobile payment 
adoption (Oliveira et al., 2016). According to Bailey et al. 
(2017), the perceived usefulness of  contactless payments 
relates to how much a customer feels he or she would gain 
if  they pay with their smartphone in the same way they 
do with other payment methods. The degree to which 

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customers think that utilizing mobile internet stores 
improves their purchasing task performance is described 
by usefulness perceptions. Hence, increasing perceived 
usefulness might lead to higher behavioral intention and 
adoption of  the technology (Abdullah et al., 2016).
Likewise, perceived ease of  use (PEOU) is significantly 
associated with respondents’ behavioral intention. The 
finding is supported by Ly and Han (2018) who stated 
that the perception of  ease of  use comprises three main 
elements: effortless, simple, and simple to handle. It is one 
of  the most critical factors in a user’s decision to adopt 
new technology (Al-amri et al., 2018). Furthermore, 
ease of  use is linked to attitude and intent to use, the 
simplicity of  use has a two-fold effect on attitude and 
utility (Kumar et al., 2018). According to Abdullah et al. 
(2016), the digital payments experience has a remarkable 
impact on consumers’ way of  purchasing and has been 
reported as easy to use by many consumers. Similarly, 
Yang et al. (2021) mentioned that perceived ease of  use 
reflects how technology makes accessing a website for 
online purchases easier. 
Furthermore, analysis of  data revealed that perceived trust 
(TRUST) is significantly associated with respondents’ 
behavioral intention. This shows that when consumers 
gain confidence in a system or service provider, they are 
more likely to use the application to make purchases in the 
future. Hossain (2019) mentioned that trust became the 
primary motivation of  online payment, counteracting risk 
perceptions. It can be argued that customer satisfaction 
has a strong antecedent on perceived trust, and that 
customer satisfaction is a prerequisite for customer 
loyalty. 
Additionally, technological awareness (AWARE) is 
significantly associated with respondents’ behavioral 
intention. This is true with the study of  Boden et al. 
(2020), who identified that individuals familiar with the 
features and functions of  diverse payment methods or 
technological innovations are more inclined to adapt to 
the new developments in payment methods. Chawla & 
Joshi  (2020) mentioned that awareness in technology is 
a skill of  being mindful and aware of  what is becoming 
popular in mobile payment and is widely acknowledged 
in the tourism market. Likewise, Thirupathi et al. 
(2019) mentioned that consumers benefit from mobile 
payment application systems if  they are informed of  the 
technologies and platforms used.
On the other hand, behavioral intention (BI) with an 
overall weighted mean of  5.32 and a descriptive rating 
of  “strongly agree” shows that the respondents strongly 
agreed that they intend to transact with tourism-related 
establishments, retailers, or merchants that accept 
contactless transactions when traveling. They plan to 
use contactless payment systems as much as possible 
when traveling, and they would recommend others to 
use contactless payment technology in their travel and 
tourism service and product purchases. As supported 
by Kaewratsameekul (2018), the behavioral intention of  
contactless payment users is mainly driven by their overall 

satisfaction with its huge impact of  influence when it 
comes to usage. Moreover, Brzoska and Hjelm (2020), 
mentioned that the consumers acquired confidence in 
cashless payment systems, which resulted in a positive 
purchase process. Therefore, people embrace contactless 
payment if  they know its benefits, find it simple to use, 
and trust it.

CONCLUSION 
Findings of  the study revealed that the influencing factors 
for the acceptance of  contactless payments in travel and 
tourism, perceived usefulness (PU), perceived ease of  
use (PEOU), perceived trust (TRUST), and awareness of  
technology (AWARE), have a significant relationship on 
respondents’ behavioral intention. This indicates that as 
technological awareness, usefulness, ease of  use, and trust 
increase, the respondents’ behavioral intention likewise 
increases. As a result of  this, when people become more 
aware of  the functions and capabilities of  contactless 
payment technology and find the system to be beneficial, 
easy to use, and trustworthy, the more they will be inclined 
to make use of  it. Contactless payments will continue to 
exist. While the recent COVID-19 outbreak may have 
highlighted their current importance, this technology 
is set to make digital “waves” far into the future. The 
advantages of  such an approach are undeniable, and 
the chances are high that wireless transactions will soon 
become the norm in the travel industry. 
Implications of  the Study, Future Research 
Directions, and Limitations of  the Study
One of  the most noticeable trends in the hospitality 
industry was contactless payment methods. This study 
provides a deeper understanding of  the influencing 
factors on the acceptance level of  contactless payments 
in travel and tourism among the residents of  Pampanga, 
which the travel and tourism sectors in the province may 
consider as one integral component in their marketing 
strategy. Embracing these options sooner instead of  later 
is an excellent way to ensure that these sectors remain 
well ahead of  the competition.
The study’s findings also serve as a foundation for future 
research on contactless payment acceptance, which may 
help future researchers develop and refine contactless 
tourism payment research models. Other researchers 
faced comparable limitations; similarly, this study had 
some limitations that can direct future researchers. Given 
that the study was conducted during the pandemic, the 
survey was conducted online, which has potential issues 
with the validity of  the participants’ responses because 
they may not always take the items seriously without the 
researchers’ guidance or immediate clarification in cases 
of  confusion or misinterpretation. Moreover, this study 
used convenience and snowball sampling techniques 
to acquire respondents. The limitation of  utilizing 
convenience sampling is that it results in a sample that is 
unlikely to be typical of  the community being examined, 
limiting researchers’ capacity to generalize the findings to 
a larger group. Despite these limitations, the findings of  

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this study are substantial and can be valuable to academics 
as well as future studies. Further study using another 
technique and statistical treatment is recommended to 
validate the result of  this study. Future researchers may 
also consider using other variables of  the TAM model 
which were not included in this study.
All sectors in the travel industry, including hotels, airlines, 
cafés, restaurants, and even individual lodging providers, 
must stay up with and react to changing trends. Contactless 
payments are being used by the tourism and travel sectors 
because they allow travel businesses to process payments 
considerably faster, even when clients do not have access 
to cash, credit, or debit cards. It can also improve the 
client’s experience by saving time.  

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Appendix A: Respondents’ Demographic Profile

Profile Frequency (n=220) Percentage

Age 21-28 140 63.64%

 29-36 42 19.10%

 37-44 22 10.00%

 45 and above 16 7.27%

Gender Male 100 45.45%

 Female 120 54.55%

Marital Status    

 Single 155 70.45%

 Married 56 25.45%

 Others: (Separated, Divorced, Widowed) 9 4.10%

Employment Status    

 Private Employee 127 57.73%

 Government Employee 30 13.64%

 Self-employed 32 14.55%

Unemployed 8 3.64%

 Others (freelancers, working students, 
retired OFW)

23 10.45%

 

Monthly income    

 less than ₱15,000 61 27.73%

 ₱ 15,001-₱ 30,000 88 40.00%

 ₱ 30,001-₱ 45,000 35 15.91%
 ₱ 45,001-₱ 60,000 15 6.82%

 ₱ 60,001 and above 14 6.36%

Source: Data from respondents

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