Mobile business expands rapidly. The increasing number of Internet-enabled devices is creating an ecosystem with almost endless possibilities. In order to survive in this emerging ecosystem, companies have to implement new applications and take many actions and adaptions. In fact, this need for innovation affects nearly every online business.
Denise Gaber examines transactions in local shops made through payment applications on customers’ smartphones, the so-called Proximity Mobile Payment Systems. She also explains the trend of proximity mobile payment and its rapid development in China compared to the low adoption rate in Austria, Germany and Switzerland.
How can mobile payment be implemented successfully? Gaber gives a SWOT analysis to indicate obstacles and to plan implementation and business strategies. As best practices she examines companies like WeChat Wallet and Alipay. Her findings are based on a profound analysis of the markets of Germany, Austria, Switzerland and China.
In this book:
- app;
- e-commerce;
- m-commerce;
- mobile commerce;
- m-payment
Table of Content
1 Introduction
1.1 Research Background & Objective
1.2 Research Structure
2 Theoretical Framework
2.1 Mobile Payment Definition
2.2 Mobile Payment Services in the P2B Market – Overview
2.3 Proximity Mobile Payment Platform– Business Models
2.4 Proximity Mobile Payment – Technologies
2.5 Anatomy of Trends & Innovation Adoption
3 Methodology
3.1 Concept of Trend Investigation
3.2 Concept of SWOT-Analysis
4 Status Quo & Trend Investigation – China vs. DACH Region
4.1 Cultural Aspects
4.2 The Past & the Status Quo in China - Economic & Governmental System
4.3 The Past & the Status Quo in DACH
4.4 Costumer or Trade - The Chicken or Egg Dilemma in DACH
4.5 PMPS Provider Landscape – Google and Apple vs. Local Providers (DACH)
4.6 China vs. DACH Region – A Comparison
5 Discussion of Findings
6 The Résumé via SWOT-Analysis – The Launch of M-Payment in DACH
6.1 Strengths
6.2 Weaknesses
6.3 Opportunities
6.4 Threats
6.5 Conclusion
7 Trend Outlook & Research Proposal – DACH
7.1 Research Limitation
8 Conclusion
Research Objective and Focus
This paper investigates the trend of proximity mobile payment, specifically focusing on the rapid adoption in China compared to the low usage rates in Austria, Germany, and Switzerland (DACH region). The research seeks to identify the cultural, economic, and technological barriers hindering adoption in the DACH region and provides a SWOT-analysis to suggest strategies for successful product implementation.
- Comparison of proximity mobile payment markets in China and the DACH region.
- Evaluation of cultural and governmental factors influencing innovation adoption.
- SWOT analysis of mobile payment business models and technology providers.
- Analysis of the "chicken-or-egg" dilemma in local mobile payment markets.
- Development of strategic recommendations for future market entry and implementation.
Excerpt from the Book
Proximity Mobile Payment – Technologies
The procedure of a successful m-payment transaction requires four steps: the payment is completed through Connection, Authorization, Money Release and Approval (WALDMANN, 2014, p. 34). Indeed, technology has an enormous impact on efficiency and operability; while the connection and authorization occur on the Users’ Interface (UI), money release and approval are backend processes, which cannot be influenced by customers. In particular, excellent user experience can mostly be based on the technology of connection and authorization, as they are under the users’ control. Correspondingly, the choice of the right system is crucial for overcoming implementation barriers of m-payment systems, hence the most common technologies are currently based on NFC or QR codes. Nevertheless, m-payment transactions at the POS can also be executed by e.g. the Bluetooth technology or barcode scanning and other methods, which are more likely to be irrelevant for the market (GERPOTT and MEINERT, 2017, p. 3). As the center of this research’s objective focuses on depicting and comparing China and the DACH region, the next chapter describes the technology of the QR code and the NFC system.
Summary of Chapters
1 Introduction: Provides an overview of the mobile business ecosystem, the rise of Fintech, and the research objectives regarding proximity mobile payment systems.
2 Theoretical Framework: Defines mobile payment, explores business models including bank-centric and collaborative approaches, and details NFC and QR code technologies.
3 Methodology: Outlines the research process, incorporating desk and field research alongside the application of the SWOT analysis model for market evaluation.
4 Status Quo & Trend Investigation – China vs. DACH Region: Compares cultural dimensions via Hofstede’s model, analyzes the Chinese political-economic environment, and evaluates the fragmented DACH market.
5 Discussion of Findings: Interprets the market differences, addressing the lack of trust in Western markets and the strategic importance of collaborative innovation.
6 The Résumé via SWOT-Analysis – The Launch of M-Payment in DACH: Synthesizes findings into a formal SWOT structure to highlight strengths, weaknesses, opportunities, and threats for mobile payment providers.
7 Trend Outlook & Research Proposal – DACH: Discusses future potential, including AI and voice-controlled payments, and proposes areas for further research.
8 Conclusion: Summarizes the necessity for better education, increased security, and strategic cooperation between banks and Fintechs to move beyond the current stagnation.
Keywords
mobilepayment, proximitypayment, alipay, wechatwallet, fintech, dachregion, china, comparison, trends, cashless, innovation, SWOT, adoption, digitalidentity, NFC
Frequently Asked Questions
What is the fundamental topic of this research?
The work examines the development and adoption of proximity mobile payment systems (PMPS) in the DACH region by contrasting it with the highly successful market in China.
What are the primary thematic areas?
The study centers on the role of cultural influences, government involvement, technological infrastructure (NFC vs. QR code), and the business strategies of various payment providers.
What is the core research objective?
The objective is to understand why proximity mobile payment has achieved mass-market success in China while remaining a niche, complex solution in the DACH countries, and to identify potential strategies to overcome these adoption barriers.
Which scientific methodology is applied?
The research follows a qualitative, systematic approach, utilizing desk research, literature review, and field research conducted at the Mobile in Retail Conference 2018, synthesized through a SWOT-analysis framework.
What does the main body focus on?
The main body investigates the current status of payment markets, identifying why factors like risk aversion, historical mistrust in financial institutions, and market fragmentation hinder the growth of mobile payments in Germany, Austria, and Switzerland.
Which keywords characterize this paper?
Key terms include mobile payment, proximity payment, WeChat Wallet, Alipay, Fintech, DACH region, SWOT, digital identity, NFC, and QR code technology.
How does the Social Credit System (SCS) in China affect mobile payment adoption?
The SCS in China acts as a powerful driver, as the government integrates mobile payment usage into personal credit profiles, which incentivizes citizens to embrace cashless transactions for social and economic benefits.
Why is the adoption of proximity mobile payment currently stagnating in the DACH region?
Stagnation is primarily due to a lack of alignment between banks and technology providers, low consumer trust, high existing acceptance of cash and card-based systems, and the "chicken-or-egg" dilemma regarding infrastructure availability and consumer demand.
- Quote paper
- Denise Gaber (Author), 2020, Launching mobile payment systems in the DACH region. A trend investigation and SWOT analysis based on examples of Chinese providers, Munich, GRIN Verlag, https://www.grin.com/document/495807
