Business Model for Mobile: Payment in China

A1 Journal article (refereed)


Internal Authors/Editors


Publication Details

List of Authors: Jie Guo, Shahrokh Nikou, Harry Bouwman
Publication year: 2015
Journal: International Journal of Systems and Service-Oriented Engineering
Volume number: 5
Issue number: 2
Start page: 20
End page: 43


Abstract

Despite the predicted success of mobile payment, the market remains immature in most countries. Major concerns
are the relationship between push and pull technologies, and the role of platforms, service innovation,
power and control in ecosystems. As the first step in their mixed-method research approach, using Analytic
Hierarchy Process (AHP) as a research approach and the STOF business model as a research framework,
the authors aim to identify design issues for m-payment services from mobile network operators’ perspectives.
Furthermore, the authors compare insights from semi-structured interviews with experts in the field to the
empirical findings, to assess how the actual business model of Chinese m-payment services can be improved
based on design issues derived from the business model. The results show that components such as building
customer trust on payment services, innovative payment experience, and extend market to new segments,
guarantee security and privacy issues, user profile management, and hardware problems involving existing
infrastructure, customer/merchant relationship, platform interoperability, and cost saving on fraud detection
need to be improved to enhance the potential of m-payment, supported by a viable and sustainable business
model. There is also a role for policy and regulation to be played.
Despite the predicted success of mobile payment, the market remains immature in most countries. Major concerns are the relationship between push and pull technologies, and the role of platforms, service innovation, power and control in ecosystems. As the first step in their mixed-method research approach, using Analytic
Hierarchy Process (AHP) as a research approach and the STOF business model as a research framework, the authors aim to identify design issues for m-payment services from mobile network operators’ perspectives. Furthermore, the authors compare insights from semi-structured interviews with experts in the field to the
empirical findings, to assess how the actual business model of Chinese m-payment services can be improved based on design issues derived from the business model. The results show that components such as building customer trust on payment services, innovative payment experience, and extend market to new segments, guarantee security and privacy issues, user profile management, and hardware problems involving existing infrastructure, customer/merchant relationship, platform interoperability, and cost saving on fraud detection need to be improved to enhance the potential of m-payment, supported by a viable and sustainable business
model. There is also a role for policy and regulation to be played.


Keywords

business model, Mobile Network Operators, Mobile Payment

Last updated on 2019-23-09 at 05:30