Mobile payment systems are an innovation that allows people to make contactless payments with a mobile device (such as a smartphone) at the cash register in brick-and-mortar retail outlets without carrying a wallet with credit and debit cards. While other countries have almost entirely adopted and integrated this innovation into their daily lives, adoption rates in Germany remain significantly low. Hence, the objective of this work is to analyze the future of mobile payment systems in Germany with respect to the reasons for adoption or refusal. In particular, the following research question was addressed: Will mobile payment methods replace physical cards in Germany, or will certain factors prevent full adoption?
Table of Contents
1 Introduction
1.1 Problem definition and research question
1.2 Terminology: mobile payment systems
1.3 Approach and limitations
2 Theoretical framework payment systems
2.1 Historical perspective on the payment industry
2.2 Technologies enabling mobile payment
2.3 Mobile payment system processes
2.4 Global adoption of mobile payment
2.4.1 Germany
2.4.2 China
2.4.3 India
2.4.4 United States
2.5 Security and safety aspects of mobile payments
3 Influential factors for the successful implementation of mobile payment innovations
3.1 Product analysis
3.2 Market analysis
3.2.1 PESTEL analysis
3.2.2 Competitor analysis
3.3 Customer analysis
4 Scientific approaches to the adoption of innovations
4.1 Adoption depending on the type of innovation
4.1.1 Disruptive innovation
4.1.2 Sustaining innovations
4.2 Diffusion of innovation theory
4.3 Unified theory of acceptance and use of technology
4.4 Pace of substitution model
5 Empirical investigation
5.1 Research methodology
5.2 Conceptualization of the questionnaire
5.3 Data protection measures
5.4 Statistical evaluation of the survey results
5.5 Hypotheses testing
5.6 Discussion
6 Conclusion
7 Appendix
7.1 Basic Information
7.2 Mobile payment innovation analysis
7.3 Mobile payment adoption analysis in Germany
7.4 Analysis empirical investigation
7.4.1 Basis of the empirical investigation
7.4.2 Basis analysis of all participants
7.4.3 Demographic analysis of the research group
7.4.4 Separation question for the research group
7.4.5 Analysis of the non-users of mobile payment systems
7.4.6 Analysis of the users of mobile payment systems
7.4.7 Analysis of the general questions for both parties
7.4.8 Further interconnecting analysis of the research group
7.4.9 Single questionnaire analysis
7.4.10 Hypotheses testing
7.4.11 Validity of the empirical investigation
Research Objectives and Themes
This work aims to analyze the future of mobile payment systems in Germany regarding factors influencing user adoption or refusal, ultimately answering whether mobile payment methods will replace physical payment cards or if specific barriers will prevent full implementation.
- Theoretical foundation of payment systems and historical development.
- SWOT analysis of mobile payment innovations.
- PESTEL and competitor analysis of the German market.
- Analysis of innovation adoption models (Disruptive, Diffusion of Innovation, UTAUT).
- Empirical investigation via an online survey conducted in Germany.
Excerpt from the Book
Historical perspective on the payment industry
“Money is a central part of everybody’s life and every society and has been more important for humanity than the wheel, the printing press, the steam engine, and the Internet.” Nonetheless, money has developed in different forms over the centuries and has changed through various innovations.
Before money was introduced, people traded goods and services with other goods and services, known as bartering. Those transactions were highly time-consuming, as trading partners needed to find a common acceptance. If, for instance, a herder wanted to exchange a sheep with a tailor for some clothes, both parties needed to agree. To avoid this inconvenience, particular divisible and portable goods were determined. Those goods were mainly cattle or grain, but shells, tea, tulips, stone disks, or whale teeth also won recognition.
For the sake of social functionality, money was introduced. The first metal objects as a means of payment were used 5.000 before Christ (BC) and were made in Lydia, in the territory of Turkey. Since then, the means of payments have continuously developed. After the Roman Empire broke apart, several different coins emerged in Europe in the early Middle Ages, such as “Heller”, “Gulden”, “Groschen”, “Schilling”, “Taler” and “Kreuzer”. Around 2.000 BC, Asia started the use of metal money. Here, gold and silver were highly used. In spite of that, other materials were also used across the globe such as copper and brass, along with substitute alloys like aluminium and nickel. The selection of the material depended on the economy and metallurgical factors. Italy thereby developed into a hub between Northern Europe and the Middle East. Nevertheless, it was precarious to transport large amounts of coins over those considerable distances. Thus, in the course of the commercial revolution, the need arose for a form of credit to make coin transport unnecessary.
Summary of Chapters
1 Introduction: Defines the research problem and the primary question regarding the future of mobile payment in Germany versus physical payment cards.
2 Theoretical framework payment systems: Establishes the historical context of global payment developments, underlying technologies, and comparative international adoption rates.
3 Influential factors for the successful implementation of mobile payment innovations: Utilizes SWOT, PESTEL, and customer analysis to evaluate the specific market environment and cultural factors in Germany.
4 Scientific approaches to the adoption of innovations: Applies theoretical models such as disruptive innovation, diffusion theory, and UTAUT to assess the potential for widespread mobile payment adoption.
5 Empirical investigation: Details the primary research through an online survey of 490 participants, providing statistical insights and validating hypotheses.
6 Conclusion: Summarizes the findings, asserting that a coexistence of physical cards and mobile payment systems is the most likely future scenario in Germany.
Keywords
Mobile Payment, Germany, Digital Wallet, Proximity Payment, Adoption, Innovation, SWOT Analysis, PESTEL Analysis, Consumer Behavior, Technology Acceptance, Physical Payment Cards, Digital Transformation, Empirical Investigation, Market Analysis, Security Concerns
Frequently Asked Questions
What is the core focus of this publication?
The research focuses on analyzing why adoption rates for mobile payment systems in Germany remain low compared to international markets and whether these systems are likely to replace physical payment cards in the future.
What are the central thematic areas covered?
The study covers the historical evolution of payment methods, technological infrastructure, cultural and market-specific barriers in Germany, and the theoretical and empirical assessment of innovation adoption.
What is the primary research objective?
The primary goal is to examine the drivers of and barriers to mobile payment adoption in the German retail sector through both theoretical analysis and a primary empirical study.
Which scientific methods are employed?
The researcher employs a mixed-method approach: theoretical analysis using established frameworks (SWOT, PESTEL, UTAUT) and an empirical investigation via a standardized online survey supported by statistical hypothesis testing.
What topics are discussed in the main chapters?
The main chapters move from defining terms and historical context to analyzing influential business factors, applying innovation adoption theories, conducting an empirical survey, and finally discussing results and limitations.
Which keywords best describe this study?
Core themes include mobile payment, digital wallets, consumer behavior in Germany, market analysis, technology acceptance models, and innovation diffusion.
How do cultural factors in Germany influence mobile payment adoption?
The study finds that German culture—characterized by high uncertainty avoidance, individualistic tendencies, and a preference for traditional payment methods—creates significant resistance to new, complex financial innovations.
Do the findings suggest that physical cards will disappear?
No, the conclusion suggests that a replacement of physical cards is not expected; instead, a long-term coexistence of physical and digital payment systems is the most probable outcome given the current market structure.
- Arbeit zitieren
- Tamara Knecht (Autor:in), 2021, The Digital Transformation of Payment: A Glimpse Into the Future of Mobile Payment Systems, München, GRIN Verlag, https://www.grin.com/document/1297113
