Mobile Payment represents a global trend of the future, which is already commonplace in some countries. This trend needs to be examined and analysed more closely. Which effects does Mobile Payment have on the consumer and which problems might be the reason for the different acceptance and spread of Mobile Payment? These questions are discussed in more detail in the following paper, which deals with the topic of Mobile Payment and consumer behaviour.
Taking photos or videos, checking for news, chatting with friends while watching videos: The role and the impact of smartphones and its mobile apps has changed more and more over the last years. For most people, it has become an indispensable tool. While going out for shopping of groceries or clothes people nowadays just carry their most important things with them. These are often their keys, wallets, and smartphones.
But the number of these things could decrease further in the next few years due to the technological developments of the smartphone. For example, unlocking smart locks via Bluetooth enabled smartphones, or regarding the elimination of the wallet, the development of Mobile Payment systems. The Smartphone is the central medium of the future, which will have to bridge the gap between easy usability and secure and fast processes. Especially concerning Mobile Payment which represents a new way of paying via smartphone. New providers are offering payment methods and a changed purchasing behaviour of end customers increasingly determines the product landscape and the market shares of these payment systems.
Interestingly, however, Mobile Payment is a very controversial topic. The controversy can already be seen here if one briefly looks at the global spread and acceptance of Mobile Payment. While in Germany currently only about 25% of all people are users of Mobile Payment, 71% of all people in Chinese use Mobile Payment systems.
Table of Content
1. Introduction
1.1 Motivation and Relevance
1.2 Objective
1.3 Structure
2. Fundamentals „Mobile Payment“
1.1 Definition
1.2 Development
1.3 Technical Requirements and Forms
1.3.1 Basic Requirements
1.3.2 Transmission standards
1.3.3 Provider
1.4 Fields of Application
3. Acceptance & Spread of Mobile Payment
3.1 International Dissemination
3.2 Acceptance and Dissemination in Germany
4. Impact of Mobile Payments on the Willingness to spend and control
4.1 Decrease in Spending Control
4.2 Examples of Mobile Payment Models to increase Expenditure Control
5. Limits and Problems of “Virtual Purses”
5.1 Privacy
5.2 Security
5.3. Transaction Costs
6. Opportunities of “Virtual Purses”
6.1 Customer Loyalty
7. Examples of the Implementation of Mobile Payment
7.1 PayPal - Implementation in Online Trade
7.2 Sparkasse - Implementation in direct Trade (Stationary POS)
8. Conclusion
Objectives and Topics of the Thesis
This thesis examines the global rise of mobile payment systems and their specific acceptance and impact on consumer behavior. The central research objective is to analyze why adoption rates vary across regions, how these payment technologies influence consumer spending habits and perceived financial control, and what technical, security, and privacy challenges persist for modern payment users.
- Evolution and technical foundations of mobile payment infrastructures.
- Comparative analysis of mobile payment adoption in global markets versus Germany.
- Psychological effects of cashless payment technologies on consumer expenditure control.
- Security challenges (Host Card Emulation vs. Secure Element) and data privacy concerns.
- Strategies for leveraging virtual wallets to enhance customer loyalty.
Excerpt from the Book
4.1 Decrease in Spending Control
Payment itself is a rather painful process that we are reluctant to experience. Because of the rather unpleasant feeling of spending money, this pain makes us careful not to spend too much. One of the consequences of this aspect is the tendency to use cash (Downing, 1999). In non-cash payment, one quickly runs the risk of spending more than originally planned because of the quick availability of larger sums of money and the "carrying around of the whole bank account". Moreover, the moment is missing when you take money out of your wallet and feel it again before paying. If you give the money to a person, you realize once again that you have just spent this money. This feeling is described by the company "Zukunft des Einkaufens" (English: Future of Shopping) as a "pronounced feeling of control over my spending" (Scholz, 2016; own translation).
This effect has been described by two researchers who have focused mainly on the psychology of credit card payments. Drazen Prelec and George Loewenstein already found out in 1998, that people are happy when they buy something, but often regret it afterwards (Parkinson, 2015). Even if credit cards have a credit limit, a direct comparison can be made. With both payment methods, you do not "feel" the money directly, but simply hold an object in front of a card reader. The feeling of spending money is even less present when paying online via a Mobile Payment service than when paying by credit card (Betuel, 2019). This is due to further reduced boundaries to execute a purchase and a way more convenient and fast payment process. All you must do is press the "key" button and the mobile phone automatically logs on to your Mobile Payment service with the deposited payment method including password, and the purchase is completed within seconds.
Summary of Chapters
1. Introduction: This chapter outlines the motivation for the study, focusing on the global technological shift toward mobile payments and sets the academic objectives regarding consumer behavior and market dissemination.
2. Fundamentals „Mobile Payment“: Provides a core definition of mobile payment, its historical technical development, and describes the mandatory requirements and transmission standards like NFC and QR-codes.
3. Acceptance & Spread of Mobile Payment: Analyzes the disparity in adoption rates between international markets and Germany, discussing cultural and infrastructural drivers.
4. Impact of Mobile Payments on the Willingness to spend and control: Investigates the psychological pain of payment and how digital wallets may unintentionally lower spending barriers, while introducing examples of digital tools for better expenditure management.
5. Limits and Problems of “Virtual Purses”: Addresses critical concerns regarding data privacy, potential re-identification risks, security architectures, and the implications of transaction fees.
6. Opportunities of “Virtual Purses”: Explores the symbiosis between digital payment and loyalty programs, showing how retail incentives can foster closer customer relationships.
7. Examples of the Implementation of Mobile Payment: Presents practical, case-based insights into the strategies of major industry players like PayPal and Sparkasse during the implementation phase.
8. Conclusion: Summarizes the key findings, reinforcing that while mobile payment offers significant convenience and hygienic benefits, users remain concerned about data transparency and financial self-control.
Keywords
Mobile Payments, Consumer Behavior, Cashless Transactions, NFC, Digital Wallet, Expenditure Control, Data Privacy, Financial Technology, Customer Loyalty, PayPal, Apple Pay, Google Pay, Sparkasse, Transaction Security, Virtual Purse
Frequently Asked Questions
What is this research paper primarily about?
The work provides a fundamental analysis of the mobile payment landscape, covering technological requirements, market adoption, and the psychological impact these systems have on consumer financial behavior.
What are the primary thematic areas covered?
The study covers technical standards (NFC, QR), market differences between major regions like Asia and Europe, security architectures (Secure Element/HCE), and the intersection of payments with customer loyalty and spending control.
What is the core research objective?
The objective is to understand the factors behind the different acceptance levels of mobile payment and to determine how these systems influence user spending control, providing insights for current and future users.
Which scientific methodology is utilized?
The paper employs a comprehensive literature review and supplements this with an empirical, anonymous survey conducted at the University of Applied Sciences in Ludwigshafen involving 24 students aged 18 to 28.
What topics are discussed specifically in the main body?
The main body evaluates the technical prerequisites for mobile payments, compares international dissemination, analyzes the psychological "pain of paying," discusses privacy and security risks, and provides concrete case studies of providers such as PayPal and Sparkasse.
What are the characterizing keywords for this paper?
Mobile Payments, Digital Wallets, Consumer Behavior, NFC, Expenditure Control, Data Privacy, and Customer Loyalty.
Does the paper specifically analyze the "pain of paying" in digital contexts?
Yes, the paper discusses how the transition from physical cash or cards to seamless mobile verification methods reduces the immediate tactile "pain of paying," potentially influencing impulse buying behavior.
How does the author evaluate the "Finanzguru" app?
The author uses "Finanzguru" as a practical example of how expenditure control (i.e., tracking and categorization) can be significantly improved, serving as a solution to concerns about losing track of one's budget when using mobile devices.
- Citar trabajo
- Adrian Demuth (Autor), 2020, Mobile Payment and Customer Behavior. Where does Germany stand?, Múnich, GRIN Verlag, https://www.grin.com/document/1362190
