Mobile Payment Market Research Articles

Why does mobile payment promote purchases? Revisiting the pain of paying, and understanding the implicit pleasure via selective attention.

The past years have witnessed a phenomenal growth of the mobile payment market, but how mobile payment affects purchase behavior receives less attention from academics. Recent studies suggested that lower pain of paying may not fully clarify the relationship between mobile payment and increased purchases (i.e., mobile payment effect). The current research first introduced price level in Study 1 and demonstrated that the pain of paying served as an underlying mechanism only in the high-price condition rather than the low-price condition. As such, Study 2 was conducted in a low-price context to address the uncovered mechanisms. We propose a new concept of "pleasure of payment" that is defined as an implicit and consumption-related hedonic response based on the cue theory of consumption. By tracking spontaneous attention to positive attributes (i.e., benefits) of products, Study 2 demonstrated this implicit pleasure as a psychological mechanism for the mobile payment effect when the pain of paying was not at play. These findings have important implications for mobile payment in research and practice by identifying price level as a boundary condition for the role of pain of paying and understanding the positive downstream consequences of mobile payment usage on consumer psychology.

The Stackelberg duel between Central Bank Digital Currencies and private payment titans in China

This study presents an in-depth analysis of the rapidly evolving mobile payment market, focusing on the competition between Central Bank Digital Currencies (CBDCs), as exemplified by China's Digital Currency Electronic Payment (DCEP), and well-established private digital payment platforms. This research builds on economic theories, including Metcalfe's Law and the Capital Asset Pricing Model (CAPM). It employs the Stackelberg game model as a strategic framework to dissect these payment systems' interactions and potential equilibrium outcomes. A notable innovation of this study is the application of advanced simulation techniques, as it uses Matlab2018a to model and predict variations in profit margins contingent on the size of the user base for each payment method. This approach yields three insightful and nonintuitive results that deepen our understanding of market dynamics. First, the study underscores the indispensable role of government support, particularly in the nascent stages of DCEP implementation, as a catalyst for competitiveness against entrenched third-party systems. Without proactive and substantial backing from the government, the DCEP might struggle to gain a foothold in a market dominated by private entities. Second, this study highlights the critical interconnectedness among the various user groups. It posits that for DCEP to effectively penetrate the market and challenge the dominance of third-party platforms, it must strategically align itself within the existing networks of these platforms. This aspect emphasises the importance of understanding and leveraging the complex web of relationships and dependencies within the mobile payment ecosystem. Third, the study identifies mutually beneficial cooperative strategies between the DCEP and third-party platforms. Drawing on the concept of Nash equilibrium, this suggests that collaboration, rather than competition, could lead to optimal outcomes for both parties. This cooperative stance can manifest in various forms, such as shared technological infrastructure, joint ventures, and cross-platform compatibility, ultimately enhancing the value proposition for end users. These findings have significant implications for policymakers, financial regulators, and market strategists, as they suggest that a balanced approach that harmonises the strengths of state-led digital currencies and private payment solutions is crucial for the sustainable development of the digital finance sector. This study also provides strategic insights for CBDCs and private payment platforms, guiding them to make informed decisions in a market increasingly characterised by technological innovation, regulatory shifts, and evolving consumer preferences.

The Impact of User Experience and Use of Mobile Payment Services in China on the Domestic Mobile Payment Market: Focusing on Alipay and WeChat Pay

The Impact of User Experience and Use of Mobile Payment Services in China on the Domestic Mobile Payment Market: Focusing on Alipay and WeChat Pay

How to improve user engagement and retention in mobile payment: A gamification affordance perspective

Given the cut-throat competition in the Chinese mobile payment market, user retention is essential for guaranteeing the long-term profitability of mobile payment platforms. Meanwhile, gamification (i.e., the use of game artifacts applying game elements and principles) has been proposed as an effective way to foster mobile payment platform retention (i.e., users' deep-rooted commitment to a certain mobile payment platform). This study aims to provide a holistic understanding of gamification effects on mobile payment platform retention. Using a survey dataset from 447 Alipay users and an online scenario experiment of 1022 participants, we find that four gamified artifactual affordances (rewards, competition, feedback, and cooperation) positively affect user retention through the mediation effect of user engagement. Moreover, narrative affordance moderates the relationship between the four gamified artifactual affordances and user engagement. This study extends the affordances theory by theoretically conceptualizing gamified artifactual and situational affordances in the mobile payment context. This study also provides guidelines for mobile payment platform administrators and proposes avenues for future IS research.

A RACE pathway for inventing and sustaining mobile payment innovation - A case study of a leading Bank in Taiwan

This study aimed to propose a resource framework called RACE to demonstrate how a conventional financial service provider developed a defensive strategy to secure existing assets and dynamically evolved to enter new areas of competition and achieve offensive success. RACE stands for technology resources (R), strategic alliances (A), customers (C), and ecosystems (E), which represent the critical resources of a conventional bank for digital transforming in the mobile payment market. The study adopts an explorative single case study to analyze Inter-firms’ coopetition in the market and to explore how competitive advantages were developed through a critical path of RACE model. The revelatory case is a leading financial institute in Taiwan. A qualitative case analysis was conducted and the results revealed that through dynamic interplays of the proposed RACE model among the internal and external resources, a conventional enterprise can create new competition battleground and develop new types of coopetition. The innovative disruption in advancing mobile payment is not a straightforward process, the journey is full of challenges from defensive resource exploitation to offensive market acceleration. The Implications of the evolving path of the RACE model provide various avenues for further research on the dynamic capabilities, and the results are suggested for academics and practitioners in the era of digital disruption.

A framework for measuring the adoption factors in digital mobile payments in the COVID-19 era

PurposeThis study aims to identify the acceptance factors in the UAE for the digital mobile payment market, introduces a new hierarchical framework based on the continuation intention factors and prioritises the importance of the acceptance criteria and sub-criteria.Design/methodology/approachThe measurement of acceptance factors in payment systems is a complex and unstructured topic involving many criteria and sub-criteria, which requires breaking the problem down into several components organised in a hierarchical multi-level form. The analytic hierarchy process (AHP) methodology manages the complexity of multi-criteria decision-making processes based on a new set of criteria connected to the adoption and continuance intention factors.FindingsThe AHP framework developed a ranking of 18 sustainability sub-factors based on evaluations by experienced payment professionals.Research limitations/implicationsThe future directions of the research would be to investigate the impact of dynamic capabilities on the resilience of retail service networks, especially during COVID-19, where supply and demand are highly indeterminate.Practical implicationsThrough successive stages of data collection, measurement analysis and refinement, the contribution of this research is a reliable and valid framework that can be used to conceptualise and prioritise sustainability strategies in payment management.Originality/valueGiven the lowest mobile payment products penetration rates of the UAE and the scarcity of literature on this topic, this study aims to contribute to the knowledge by including UTAUT, the IS success model and the impact of COVID-19 as adoption and continuance intention factor in the digital mobile payment case in the UAE.

The Social Selection of the Third Party Payment Technology in China on the Social Shaping of Technology Perspective

Compared with QR code payment technology, NFC near-field payment has more advantages of safety and easy using than before; however, QR code payment technology had become the mainstream payment method in China mobile payment market. In this regard, the traditional technological determinism is difficult to fully explain the phenomenon. But, the social shaping theory (SST) could provide a new thinking to expound the historical queries. Based on the research perspective of SST, this paper takes Alipay's QR code payment technology as a case study, analyzed the impact of various social factors on the diffusion of QR code payment technology and explored the strategy of technology commercialization.

Game between the third party payment service provider and bank in mobile payment market

With the innovation and integration of the Internet and the financial industry, the third-party payment market has developed greatly and has great potential. This paper discusses the duopoly game between third-party payment service providers and banks, which are the main participants in the mobile payment market. By constructing Nash game model, the conditions of equilibrium point, stability and bifurcation are analyzed. The effects of adjusting parameters and cooperation coefficient on business volume and profit are discussed. The conclusions are as follows: excessive investment will lead to unpredictable fluctuations in the market and fall into chaos; By strengthening cooperation, all participants in the mobile payment industry chain can improve business volume and profits while curbing chaos in the mobile payment market.

The Determinants of PayTech’s Success in the Mobile Payment Market—The Case of BLIK

FinTech and its interaction with banking is widely discussed today as a new phenomenon notwithstanding the relationship between technology and financial services is not a new topic. Most of the research focuses on innovations and determinants of their adoptions including among other innovations in the payment system. The studies dedicated directly to PayTechs as a special kind of a FinTech entity and its market activity are a relatively new field of research. This paper aims to fill this gap. The multidimensional character of this exploratory research causes the necessity to apply various research methods, including both inductive and deductive methods, together with comparative analysis. The theoretical analysis conducted in the paper for defining PayTechs from the perspective of business model and market behavior was based on an in-depth literature review. In this section, the inductive method and comparative analysis were mostly applied. The empirical part of the paper includes the analysis of quantitative data published by the National Bank of Poland (NBP), Central Statistical Office (GUS), and Bank for International Settlements (BIS). The subject of the case is the Polish Payment Standard referred to as BLIK implemented in Poland in 2015 for mobile payments. The BLIK diffusion is measured by the number of entrants and acceptants as well as the scope of transactions while the adoption by the number of customers using BLIK in everyday transactions. The results present the market behavior of BLIK as an open business model and the key success factors of BLIK adoption and diffusion and the determinants for further open payment innovations’ development. The newly developed definition of PayTechs, the identification of the major components of the PayTech open business model, as well as the indication of the key success factors of adoption and diffusion of m-payments, constitute the original contribution of the paper.

China’s Mobile Payments in Complementary Multiplatform Ecosystems

Using a longitudinal case study this paper aims to demystify how China developed the world’s largest mobile payment market based on a backward technology and in a rigid institutional environment. We find that, different from multi-sided platform ecosystems, complementary multi-platform ecosystems are critical in the success of China’s mobile payments. In such ecosystems, mobile payment platforms – a nascent filed at the convergence of mobile communications and payment industries – are a type of ‘platform of platforms’ intermediating multilateral interactions across multiplatforms. We expanded the scope of complementarity in ecosystems from multi-sided platform ecosystems to multi-platform ecosystems. The findings enrich our theoretical understanding of the effects of multi-platform ecosystems on individual platforms, not only on nurturing a nascent field (i.e., mobile payments) by enacting a value co-creation and co-capture environment for sharing, but also on signalling their legitimacy in a country where institutional settings are generally rigid. The lessons also carry practical and policy implications.

Young Generation’s Mobile Payment Adoption Behavior: Analysis Based on an Extended UTAUT Model

Younger generations comprise an essential segment for the mobile payment market to prosper. However, empirical evidence of the drivers/barriers of the young generation’s adoption of mobile payment has been inconclusive. This study intends to advance the body of knowledge on this subject based on the extended Unified Theory of Acceptance and Use of Technology (UTAUT), incorporating the young generation’s risk perception and bonus/rewards provided by the mobile-pay firms. To this end, 295 samples with the majority being more tech-savvy, namely generation Y and generation Z, were collected from an online survey in Taiwan. The empirical results in this study demonstrate the uniquely positive effect of social influence on the young generations’ behavioral intention to adopt mobile payment. While behavioral intention and promotional activities are the drivers of the young generation’s actual usage of mobile payment, perceived risks are found to exert a negative impact, reflecting the risk-averse preferences of the young generation in Taiwan. The ignorable moderation effect of gender, on the other hand, suggests the absence of a gender gap in the use of mobile payment among the young generations. The findings in this research have important implications for the development of promotion programs motivating the young generation’s adoption of mobile payment.

Young Generation’s Mobile Payment Adoption Behavior: Analysis Based on an Extended UTAUT Model

Younger generations comprise an essential segment for the mobile payment market to prosper. However, empirical evidence of the drivers/barriers of the young generation’s adoption of mobile payment has been inconclusive. This study intends to advance the body of knowledge on this subject based on the extended Unified Theory of Acceptance and Use of Technology (UTAUT), incorporating the young generation’s risk perception and bonus/rewards provided by the mobile-pay firms. To this end, 295 samples with the majority being more tech-savvy, namely generation Y and generation Z, were collected from an online survey in Taiwan. The empirical results in this study demonstrate the uniquely positive effect of social influence on the young generations’ behavioral intention to adopt mobile payment. While behavioral intention and promotional activities are the drivers of the young generation’s actual usage of mobile payment, perceived risks are found to exert a negative impact, reflecting the risk-averse preferences of the young generation in Taiwan. The ignorable moderation effect of gender, on the other hand, suggests the absence of a gender gap in the use of mobile payment among the young generations. The findings in this research have important implications for the development of promotion programs motivating the young generation’s adoption of mobile payment.

Implementation of Cryptographic Algorithm in Dynamic QR Code Payment System and Its Performance

QR code payment plays an indispensable role in the mobile payment market, and the security of scanning codes has always been a problem in the field of information security. Static QR codes are easily copied and replaced, and there are huge security loopholes. The QR code payment in a closed system still faces security challenges. In order to solve the security problem of QR code payment, we have studied dynamic QR code payment system that supports SM2, SM3, and SM4 cryptographic algorithms, which can realize QR code scanning and scanned transactions, UnionPay cloud QuickPass transactions, etc., and generate dynamic QR code information in real time during the transaction process, one order and one code. Through dynamic algorithm distribution, the randomness and uniqueness of QR code generation are guaranteed, and it is suitable for multi-scene application transactions. The algorithm correctness test result shows that the system has achieved the expected effect. The performance test results show that the hardware of the security module implements the algorithm flow and improves the payment performance. Compared with some other algorithms, the processing time is shorter, the running speed is faster, and the system is more secure.

Financial Technology Innovation in the Mobile Payment Market

In the context of the digitalization of the financial sector, which is an integral feature of the development of the modern world economy, mobile payment technologies are becoming an urgent direction for the development of payment systems. Due to the fact that digital interaction between economic entities is actively developing, convenient instant non-cash payments are essential for consumers of financial services. The research analyzed the dynamics of the current state of the world and Russian market of mobile payments, including payments by QR-code, and the prospects for their development. The concept of mobile payment is given and the classification features of the global mobile payment market are highlighted. The article reflects the current trends in the global mobile payments market. We examined widely used mobile wallet applications that are available worldwide due to rapidly growing demand. For the Russian payment system, the study of foreign experience in the application of financial technologies in the field of mobile payments seems to be necessary due to the possibility of adapting and introducing advanced developments into the internal financial market.

Cross-Side Network Effects, Brand Equity, and Consumer Loyalty: Evidence from Mobile Payment Market

ABSTRACT Given the intense competition in the mobile payment market, researchers have been exploring strategies to maintain brand equity and consumer loyalty. By considering the characteristics of mobile payment, we incorporate cross-side network effects (CNEs) and the complementarity actions (i.e., platform-application, application-service, and service-strategy complementarities) to examine mobile payment brand equity and consumer loyalty. We test the research model using survey data collected from Alipay Wallet (n = 647) and WeChat Wallet (n = 327). The results show that platform-application, application-service, and service-strategy complementarities positively influence brand equity, which in turn leads to consumer loyalty. In addition, service-strategy complementarity reinforces the impacts of platform-application and application-service complementarities on brand equity. This study contributes to the literature by introducing CNEs in the mobile payment context and examining the relations between CNEs, brand equity, and consumer loyalty. Furthermore, the results provide practitioners with insights into consumer loyalty in the mobile payment context.

The use of statistical methods in the analysis of mobile payment market in Poland

Payments are an inherent element of economic activity (León and Ortega 2018). However, the evolution of payment instruments and the way individuals and businesses make daily payments has undergone enormous change in human history, particularly due to main innovations in payment systems in last decades (Gandhi 2016). The last innovation in payment system concerns mobile payment. The development of mobile payments market can have a positive impact on economic growth (Leon and Rodriguez 2012). Although the Polish market of mobile payments is in the initial phase of development, it is one of the pioneering and leading in Europe and globally. The main purpose of this article is to analyze, which feature (convenience, speed, availability, ease of use, safety) of mobile payments could be the most important for users from Poland.

Exploring Consumers Adoption of Mobile Wallet in Kolkata

Technological advancement in digitalisation has changed the way business is done nowadays. The mobile payments market in India is growing at a rapid pace, as a result of growing smart phones and internet penetration. The present study aims to identify the factors that influence consumers in adopting Mobile Wallet and various risk and challenges faced by the users of Mobile Wallet. A structured questionnaire was prepared and data was collected from 120 respondents and the obtained data were analysed using ANOVA to get the statistical result. It is found availability, safety and accessibility plays an important role in adoption of mobile wallet.

Security analysis of third-party in-app payment in mobile applications

The massive growth of smart mobile devices has attracted numerous apps to embed third-party in-app payment, which involves more sophisticated interactions between multiple participants compared to traditional payments. Therefore, such payment is error prone and could be exploited easily, leading to serious financial deceptions. To investigate current third-party mobile payment ecosystem and find potential security threats, we conduct an in-depth analysis against China–world’s largest mobile payment market. We study four mainstream third-party mobile payment cashiers, and conclude unified process models. We also summarize the security rules that must be regulated by cashiers and merchants and illustrate four types of attacks if violating these rules. Besides, we also detect seven cases of security rule violation on both Android and iOS platform. Our detection result shows that hundreds of popular apps violate at least one security rule, and hence face with various security risks, allowing attackers to consume commodities or services without purchasing them or deceiving others to pay for them. Our further investigation reveals that cashiers as well as merchants should be responsible for those vulnerable cases. We also performed proof-of-concept attacks in real world, reported these issues to all involved parties and helped them fix the vulnerabilities.

An Introduction to the Mobile Payment Market and Trend in China

An Introduction to the Mobile Payment Market and Trend in China

An Empirical Study on the Use Intention of Mobile Payment: Focus on Alipay

오늘날 알리페이는 중국에서 가장 대표적인 모바일 결제로서 중국의 핀테크 시장을 이끌어 나가고있다. 본 연구는 20~50대 중국 소비자의 지각된 유용성과 알리페이 사용의도에 영향 주는 요인에 대해분석함으로서 중국의 모바일 결제 시장을 설명하려는 데 목적을 두고 있다. 이를 위해 알리페이와 위챗페이를 모두 사용한 경험이 있는 중국 소비자를 대상으로 설문조사를 진행하였고 SPSS 23.0과Amos23.0을 활용하여 의미 있는 결과를 도출하였다. 실증분석 결과 지각된 용이성, 상대적 이점은 지각된 유용성과 사용의도에 유의미한 영향을 미치는 것으로 나타나고 지각된 유용성은 사용의도에 유의미한 영향을 미치는 것으로 나타났지만 지각된 위험과 사회적 이미지는 지각된 유용성과 사용의도에 유의미한 영향을 미치지 못하는 것으로 나타났다. 본 연구는 기존의 모바일 결제 사용의도에 관한 연구와 다르게 40세 이상의 중국 소비자들도 포함하여 연구를 진행하고 알리페이와 위챗페이 간의 서비스 등 방면의 차이가 알리페이 사용에 미치는영향을 고려하여 현재의 중국 모바일 결제 시장을 설명하였다는 것과 본 연구와 유사한 관점을 보여주는 중국 모바일 결제 사용의도에 관한 연구가 거의 없다는 것에서 의의를 갖고 있다.Today, Alipay is the most representative mobile payment in China, leading China s FinTech market. This study aims to explain China s mobile payment market by analyzing factors that affect Chinese consumers perceived usefulness and use intention of alipay in their 20s and 50s. To this end, we conducted a survey of Chinese consumers who had experience using both Alipay and WeChat Pay, and we used SPSS 23.0 and Amos23.0 to produce meaningful results. The empirical analysis showed that perceived ease of use, relative advantage, appears to have a significant effect on perceived usefulness and use intention, and that perceived risk and social image do not have a significant effect on perceived usefulness and use intention. Unlike the study on the use intention of mobile payments, this research is meaningful in that it can better explain the current Chinese mobile payment market, including consumers aged 40 and older in China, and considering the impact of differences in aspects such as services between Alipay and Wechatpay on the use intention of Alipay. And it is significant that there is little research on the use intention of mobile payments in China, which shows a similar view to this study.