Report on Mobile payment market and research-Past present and future 

Abstract #

Now with the help of smartphones, the people are able to purchase services and goods conveniently without going to any retail outlet physically. The secure mobile payment systems help the businesses to attract more customers and support them to attain a high competitive edge in the market where each day trend changes and new entrant enter in the market that raises the competition in the market. These mobile payments progressions open up numerous opportunities for merchants and service providers. Samsung, Apple, Google Incorporation all generated their online mobile payment systems for the benefit of the customers. But even after such benefits, the adoption of the mobile payment system is slow. This study analyzes the factors that affect the mobile payment system. The study will analyse the impact of the social, environmental, commercial, and legal and regulatory system, competition and consumers behavior on the mobile payment market through using the survey questionnaire technique

Introduction #

From the past many decades the mobile has transformed the manner of the communication and now with high innovation in the mobile phones it becomes the device that will be used in almost all of the fields if life whether for communication or transaction. The innovation in mobile phones offers many new opportunities in the shopping method, and it boosts the e-commerce business highly. Now with the help of smartphones, the people are able to purchase services and goods conveniently without going to any retail outlet physically. As mobile phones are becoming the major hub for getting the buying of the services and the products online there has been the rise in the awareness of a potential for the secure method of the mobile payment over the older type of the payment, involving the insecure payment method of typing the card numbers and detail in the personal computers (Yang & Forney, 2013).

These mobile payments progressions open up numerous opportunities for merchants and service providers. It is observed that at that time there is no device better than the mobile phones that will be utilized for the market, produce, sell or provide the services and products to the customers in this complex and competitive market. The secure mobile payment systems help the businesses to attract more customers and support them to attain a high competitive edge in the market where each day trend changes and new entrant enter in the market that raises the competition in the market (Liu & Tai, 2016)

The mobile payment system can be used to raise the business growth, and this seeks the attention of the investors to generate secure mobile payment applications for attaining high profits. Samsung, Apple, Google Incorporation all generated their online mobile payment systems for the benefit of the customers. While the service merchants of the mobile payment even after much advancement still face the strategic challenges in spreading the adoption of the mobile payment service because of many factors that affect its adoption. The perceived trust, attitudes, perceived mobility, reputation, and environmental risks are some of the factors that impact significantly to the mobile payment system market adoption (Dastan & Gürler, 2016)

This study analyzes the factors that affect the mobile payment market which is facing issues even after much advancement and benefits. The factors that are involved in the study to analyze their impact on the mobile payment market are a social, environmental, commercial, and legal and regulatory system, competition, merchant power, technological changes, and consumer’s behavior. For the social and environmental factor, this study includes proxies like trust, consumer’s belief, income level, privacy concern and living standard of people in the nation.

Research questions #

The research question of this study is constructed on the bases of the literature review and the objective of the study. The research question of this study is as follow

How the social, environmental, commercial, and legal and regulatory system, competition, merchant power, technological changes, and consumer’s behavior affect the growth and adoption of the mobile payment market?

Research objectives #

As the advancement in technology occur each day, and these innovations are mainly designed for the benefit of people. E-Commerce and mobile phones are considered as the main development of technology and these changes our lives effectively. The mobile phones support better communication, and with e-commerce, shopping becomes easily as we don’t need to go to any store outlet physically to do shopping. For better growth of the e-commerce business and customers convenience, many companies develop mobile payment applications. But the mobile payment market is presently under the transition with the history of the numerous attempted and failed solutions. There exist numerous amount of the factors that affect the success and the growth of the new mobile payment service. This main study objective is to describe the association between these factors to analyze how they affect the growth of the mobile payment market. The other objectives of this study are as follows

• Identify how the social and the environmental factors affect the mobile payment market
• Explore the impact of the consumer and merchant power on the development and adoption of the mobile payment market
• Discover how the competition and change in the technologies influence the mobile payment market
• Identify how the changes in the regulatory and the legal structure affect the mobile payment system and market over time

The aim of the study #

The aim of this research study is to identify how the factors like social, environmental, commercial, and legal and regulatory system, competition, merchant power, technological changes, and consumer’s behavior affect the growth and adoption of the mobile payment market in order to support the literature and the future researchers to design their study effectively. As past study like one that is conducted by Dahlberg, et al., (2006) this study aim is derived that this study contribute this study finding by proofing its study variables relationship (Dahlberg, et al., 2006). This study through its finding also helps the managers and the companies to know which factor positively or which negatively affect the mobile payment adoption, so they become able to make effective strategies and design the better mobile payment service that supports the online transaction more securely and boosts the growth of e-commerce business along with other businesses.

Research contribution #

In the existing study, they only show a relationship between factors but not explain how they affect the mobile payment market and how their negative effect will be managed. So, this show explains how these factors affect and how they will be handled and recommend how better technology development improves mobile payment adoption in the market. So, this study is highly effective for knowledge improvement and the managers and companies because it supports them in their strategic planning and for attaining the high growth in the market. By this study, the future researcher knows other dimensions that they will be used in future studies to contribute effectively to the mobile payment system literature study. By this study, the managers and the companies know how different factors that impose a positive impact on the mobile payment market and also understand factors that impose negative impact. So, by this understanding, they consider the positive factors effectively and design strategies to mitigate the factors that impose negative impact in this manner the high adoption and the growth will be attained in the mobile payment market.

Literature Review #

Mobile payments are for service, bills, and goods with the help of mobile devices. The factors of the mobile payments are described in the framework which has a significant impact on business. These factors are important for researchers and their ability, understanding and prediction are affecting the businesses (Dastan & Gürler, 2016).

Social and Cultural Factor #

The changes in the cultural and social environment affect the payment system. The changes include greater mobility, appreciation, and lifestyles of people. The study analyses cultural adoption and development influence on the mobile payment system. The mobile-payments development is due to the lacking of cooperation and agreement in the players and developers. The main reason for destroying them-payment study have an inability. The industry strength is developing and advancing due to the changes in the environment and approaching new techniques. The payment system depends on the culture and social environment which affects the buying behavior and consumption habits (Okereke, 2017). It is observed that the cultural and the social factors like education, personalities, and ideologies of the people, their beliefs and customs impose a significant impact on the mobile payment. Like in the nations where people have high trust issues this impose a negative impact on the adoption of the mobile payment service because of they believe it as insures and might affect their privacy, so they use it and use the traditional payment methods (Mondego & Gide, 2018)

Commercial Environment factor #

The development of mobile and internet networks changes the commercial channels. It increases self-service and automation orientation. In this study, the commercial environment changes need to be enhanced or new payment services to drive future developments. Technology develops a suitable environment for mobile payment. Many more types of research are needed for identifying the needs of mobile environments in payment service (Dennehy & Sammon, 2015)

The factor of the technology environment #

Due to the development of advanced technologies and wireless facility the new and modern mobile payments systems are introduced. This study analyses the new challenges, innovation and issues in the mobile payment system. The study explored suitability in networking technologies to provide features that are required in mobile payments. The Bluetooth, RFID, and Infrared are the payments system by the technologies.  The study has a focus on the sound-based, mobile-to-mobile and policy-based systems for the mobile payment. There is a wide range of changes in the mobile market through the innovation of technologies. This is increasing the business processes and gaining customers loyalty. A three-dimensional framework of mobile payment gathers new technologies are having the wireless infrastructure and mobile service application and other content providers. (Kabir, et al., 2015)

Changes in the standardized, regulatory and legal environment #

This factor needs to drive new development changes in mobile payment. Changes in the legal, standardized and regulatory environment affect regulation and jurisdiction. The study concludes the regulatory issues in mobile payment among different countries.  The process of the standard settings in the payment system is discussed with standard field importance. This article explained the fact that mobile transactions between countries are increasing complexity due to the law of regulation and web. The researchers also presented the framework of Mobile Enterprise Security and Legal (Ofunya, 2013)

Factor that affects consumer adoption #

Consumer adoption is described in the study that consumer has an influence on the mobile payment system. The success of the mobile payment service depends on the participant’s number and transaction volume. It is explained that consumers don’t have any direct influence on providers at the initial development stage. The debit cards can be brought through markets for limiting customer’s number to withdraw the cash. This is to improve business processes while reducing the bank’s costs. The results of the survey in the study show the user-centric model that is based on the consumer’s features. The determination of the research study is to discover the consumer’s acceptance of preferences and motivations. To launch some successful solution to mobile payment, this should have to be adopted. The research has mobile payment providers concerning the consumer’s research (Doan, 2014)

Merchant effect on the mobile payment

It is explained that merchants play an important role in the mobile payment system. It is responsible for creating a market for service providers and financial institutions. The failure in the payment solution was due to lack of the merchant in development. The power of the merchant can’t underestimate the payment scheme. Merchant’s consortium has some significant bargaining power that is against the payment system providers. The merchants operate their payment solution by themselves in industries like public transportation. This study analyzed the risks of the merchants to become the payment provider. Researches have already understood the factor of the adoption of the merchants. This also needs further study to understand the role in the market for mobile payment. (Dennehy & Sammon, 2015)

Effect of traditional mobile payment #

The popular payments modes for purchasing debt, credit cards and cash checks are the traditional services. There is a strong card process in Europe. The digital trend of payment demands the payment instrument that supports electronic commerce. The development of mobile commerce and mobile services demand payment service. A trend for paying the bills through internet banking, e-direct and e-voices are increasing. The study explains the current issues which remain unsolved in traditional payment services (Liu & Tai, 2016)

Research hypotheses #

The hypotheses of the study are designed on the bases of the research questions and the literature review of the study. The directional predictions in the hypotheses are developed on the bases of the past studies on this subject matter. Following are the research hypotheses of the study

H1: Merchant power and consumer power impose a significant impact on the mobile payment market

H2: There exists the negative correlation between the Changes in the regulations and legal structure and the mobile payment market growth

H3: Technological changes positively influence the growth of the mobile payment market

H4: Rivalry condition in the market impose a significant impact on the mobile payment market

H5: The social and environmental factors negatively affected the growth of the mobile payment market.

Conceptual model #

The conceptual model of the study that is designed on the bases of the literature review and the hypotheses of this study. These variables are taken from the study (Dahlberg, et al., 2006)

Conclusion #

It is concluded that innovation in mobile phones offers many new opportunities in the shopping method, and it boosts the e-commerce business highly. Now with the help of smartphones, the people are able to purchase services and goods conveniently without going to any retail outlet physically. But the growth of the mobile payment system even after many advancement and benefits is slow that affect the vendors highly. This study analyzes the factors that affect mobile payment markets highly. In these, some factors are contingency factors, and some are competitive factors. As the past studies not considered all these factors jointly and not give clear finding related to these factors impact on the mobile payment market. So, this study will analyze these factors through using questionnaire survey technique that helps to get reliable data and support the generalizability of the study. These mobile payments progressions open up numerous opportunities for merchants and service providers. This paper through its effective work and results contributes effectively toward the literature review and support the managers and companies in making the better strategies that not along with rising the adoption rate of the mobile payment method also rise the growth and sales volume of the business. This study included the factors like the social, environmental, commercial, and legal and regulatory system, competition and consumers behavior that are main factors that affect the mobile payment market effectively in this digital and complex business environment. For the social and environmental factor, this study includes proxies like trust, consumer’s belief, income level, privacy concern and living standard of people in the nation.  From its results, the managers and companies become able to make effective strategies that boost their growth. It also recommends the managers and companies to consider these factors while making their future business operations planning for attaining high growth.

References

Dahlberg, T., Mallat, N., Ondrus, J. & Zmijewska, A., 2006. Mobile Payment Market and Research – Past, Present and Future. Sprouts Working Papers on Information Systems, 6(48).

Dastan, I. & Gürler, C., 2016. Factors Affecting the Adoption of Mobile Payment Systems: An Empirical Analysis. Emerging Markets Journal, 6(1).

Dennehy, D. & Sammon, D., 2015. Trends in mobile payments research: A literature review. Journal of Innovation Management, Issue 1, pp. 49-61.

Doan, N., 2014. Consumer adoption in mobile wallet. Journal of Buisness Adminstration.

Kabir, M. A., Saidin, S. Z. & Ahmi, A., 2015. Adoption of e-Payment Systems: A Review of Literature. Internation Conference on E-Commerce.

Liu, G.-S. & Tai, P. T., 2016. A Study of Factors Affecting the Intention to Use Mobile Payment Services in Vietnam. Economics World, Volume 6, pp. 249-273.

Mondego, D. & Gide, E., 2018. The effect of trust on mobile payment adoption: a comprehensive review of literature. International Journal of Arts & Sciences, 11(1), pp. 375-390.

Ofunya, F. A., 2013. Effects of strategic management practices on performance of financial institutions in Kenya: Case of Kenya Post Office Savings Bank.. International Journal of Business Management and Administration, 2(6), pp. 122-141.

Okereke, D., 2017. Factors Driving Mobile Payment Adoption: Benefits, Challenges & Opportunities.. International Journal of Business Management and Administration.

Yang, K. & Forney, J. C., 2013. “The Moderating Role of Consumer Technology Anxiety in Mobile Shopping Adoption: Differential Effects of Facilitating Conditions and Social Influences. Journal of Electronic Commerce Research, 14(4).