Abstract
The rapid expansion of tourism in Danao City, Cebu, has highlighted persistent inefficiencies in its local transportation system particularly in fare transparency, transactional security, and digital service integration. While digital payment systems have been widely adopted in major urban centers, secondary cities like Danao often lag, underscoring a significant research gap in understanding the digital readiness and implementation feasibility of such systems in mid-sized Philippine locales. This study addresses this gap by evaluating commuter challenges and proposing a QR code-based online payment solution tailored for local transport modernization. Using a descriptive research design, data were gathered from 96 respondents including tourists, residents, and transport providers via structured surveys. Results indicate widespread dissatisfaction with fare inconsistencies (WM = 4.03), lack of transparency (WM = 4.00), and limited payment options (WM = 3.98). Security concerns such as theft and fraud scored the highest (WM = 4.14). Notably, 92.71% of respondents preferred features like online booking and payment, while 69.8% emphasized the importance of a user-friendly interface. This study is novel in its contextual focus on under-digitized secondary tourism cities and provides a strategic roadmap for implementing a QR code-enabled fare system. Findings contribute to the discourse on digital inclusion, sustainable urban mobility, and smart tourism practices in emerging urban areas.
