TITLE:
Mobile Payments—Why They Are So Successful?
AUTHORS:
Lu Lu
KEYWORDS:
Mobile Payments, Business Model, Consumer Preference, Merchants Power
JOURNAL NAME:
Open Journal of Business and Management,
Vol.7 No.3,
May
17,
2019
ABSTRACT: Mobile payment service is exploding at an impressive rate as the global mobile
payment revenue almost tripled over the last five years. But the reasons behind
this phenomenon are still not clear. This paper thus focuses on identifying the
key factors that contribute to the success of mobile payments. We firstly take a
look at the current status of mobile payments. With this brief background in
mind, we then address several questions associated with three key actors of mobile payment ecosystem: m-payment service
provider, consumer, merchants. Specifically, the business model of mobile
payments firms (including value proposition, market contribution, revenue
source), consumer preferences and merchant. Conclusions: Mobile payment is gradually developing towards
diversification and cross-border integration with highly sophisticated
technology behind; the success of mobile payments application is based on
aprofitable and valuable business model; in
order to gain a competitive advantage when facing with fierce competition in
the market, firms should respond best to consumer change and merchant feedback.