Author(s)

Lu Lu

Nanjing Normal University, Nanjing, China.

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.

Mobile Payments, Business Model, Consumer Preference, Merchants Power

Lu, L. (2019) Mobile Payments—Why They Are So Successful?. Open Journal of Business and Management, 7, 1131-1143. doi: 10.4236/ojbm.2019.73078.