Digital Payment Schemes and Collection Efficiency: Evidence from Sorsogon II Electric Cooperative (SORECO II)

This study evaluated the effectiveness of digital payment schemes in enhancing the collection efficiency of Sorsogon II Electric Cooperative (SORECO II). Specifically, it determined the level of effectiveness of digital payment schemes in terms of platform connectivity and payment accuracy, and customer access and payment convenience; assessed the level of member-consumers' satisfaction; identified the challenges encountered by cooperative staff and member-consumers in the adoption of digital payment schemes for bill collection; and proposed a digital payment optimization plan to further improve the cooperative's digital payment services. The study employed a quantitative descriptive research design using survey questionnaire with checklist, specification, and Likert-type rating scales. A total of 38 respondents, composed of SORECO II staff and member-consumers, participated in the study. The findings revealed that the digital payment schemes of SORECO II were effective in terms of platform connectivity and payment accuracy, as well as customer access and payment convenience. Member-consumers were likewise satisfied with the digital payment scheme, particularly in terms of service efficiency and transparency. However, the study identified several challenges affecting digital payment adoption, including unstable internet connectivity in rural areas, limited digital literacy, unfamiliarity with mobile payment applications, system downtime, failed transactions, limited access to financial services, transaction fees, cybersecurity and data privacy concerns, and the continued preference for face-to-face payment transactions. Based on these findings, a digital payment optimization plan was proposed, which includes improving digital infrastructure, developing low-bandwidth and offline-compatible payment channels, strengthening cybersecurity and transaction verification, expanding payment partnerships and financial inclusion initiatives, implementing digital literacy programs, reducing transaction fees where feasible, and adopting a gradual hybrid payment approach. The study concludes that the digital payment schemes implemented by SORECO II effectively enhance collection efficiency while improving customer convenience and satisfaction. Addressing the identified challenges is essential to achieving broader adoption and ensuring the long-term sustainability of digital payment services within the cooperative.