This study aims to design and develop a Cashless Payment System with Automatic Identification and Data Collection (AIDC) technology in an educational institution in the Province of Nueva Ecija, Philippines to understand the processes and activities undertaken to develop the project. It utilizes a descriptive and developmental method of research involving parents and students as the respondents using purposive sampling method. The system was developed following the stages of the Incremental Model of software development and was assessed based from the International Organization for Standardization's 9126 software criteria. The system passed the assessment made by the respondents and was viewed as an effective alternative to cash-based payment transactions.