Abstract
Under the background of current development of China’s payment system, this paper researched the diffusion trend of mobile payment products and constructed a payment product diffusion model based on the Bass model that considers repeated purchases. Through a comparative study between traditional products, such as debit and credit cards, and mobile payment products, such as mobile banking; as well as a comparative study between mobile payment products issued by large state-owned banks and joint-stock banks; the paper discussed mobile payment promotion strategies among different types of payment institutions. Moreover, the fitting effect between the model in this paper and the traditional Bass model is verified by empirical analysis.
Highlights
In the 70 years since the founding of New China, with the development of economy and viability, the people’s payment methods have changed many times
Under the background of current development of China’s payment system, this paper researched the diffusion trend of mobile payment products and constructed a payment product diffusion model based on the Bass model that considers repeated purchases
The payment market has undergone multiple stages of development with different payment methods dominating—from card payment, which generated in the era of material scarcity period, to the payment system in which cash payments, bank card payments, Internet payments, and mobile payments coexist
Summary
In the 70 years since the founding of New China, with the development of economy and viability, the people’s payment methods have changed many times. In China, according to data released by the Payment and Settlement Department of the People’s Bank of China, the transaction scale of China’s mobile payment market in 2013 was still ¥9.64 trillion (PBC, 2013), while it reached ¥347.11 trillion in 2019, that is an increase of 35 times. Mobile payment has been generally accepted by consumers, but the mobile payment products released by major mobile payment participants, such as commercial banks, communication operators, and third-party payment institutions, have different social acceptance levels. While few studies involve questions such as “Can mobile payments still maintain a good growth trend?” and “How. many potential mobile payment technology adopters are yet to be developed?” As a service innovation technology, mobile payment is subject to innovation diffusion theory. The research results show that the internal factors of Interpersonal reputation effect of payment products are significantly stronger than that of mass media; the market capacity of mobile payment products is still large, and payment institutions need to invest more resources in product promotion
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