Uddannelsens navn: Cand.merc EMF & Cand.merc FSM Kandidatafhandling Vejleder: Lars Ive Dato for aflevering af opgaven: 03/12-2015 antal anslag/sider: 270.659/117 Martin Stenderup og Hans Mathiesen The future of mobile payments in Denmark Can Swipp consolidate a strong position in the industry? Hans Mathiesen & Martin Stenderup Master thesis Table of content Chapter 1. Executive summary .......................................................................................................................... 5 Introduction and motivation ............................................................................................................................. 7 Chapter 2. Problem statement .......................................................................................................................... 9 Chapter 3. Overview of mobile payments ....................................................................................................... 10 3a. Overview of current mobile payment solutions ........................................................................................ 13 3b. Payments in the Danish market ................................................................................................................ 14 3c. History of mobile banking in Denmark ...................................................................................................... 16 Chapter 4. Swipp ............................................................................................................................................. 16 4a. The solution Swipp .................................................................................................................................... 17 Chapter 5. Commerce and retailers ................................................................................................................ 18 Chapter 6. Delimitation ................................................................................................................................... 19 Chapter 7. Structure ........................................................................................................................................ 20 7a. Current industry situation ......................................................................................................................... 23 7b. Life cycle of mobile payments solutions ................................................................................................... 23 7c. Consumer preferences in a theoretical perspective .................................................................................. 23 Chapter 8. Method .......................................................................................................................................... 23 8a. Methodology ............................................................................................................................................. 24 i. The hermeneutic theory framework ............................................................................................................ 24 8b. The social constructive theory framework ................................................................................................ 24 8c. Empirical research...................................................................................................................................... 26 i. Primary empirical data ................................................................................................................................. 26 1. Interviews .................................................................................................................................................... 26 2. Focus groups ................................................................................................................................................ 27 3. Quantitative questionnaire ......................................................................................................................... 28 ii. Secondary empirical data ............................................................................................................................ 29 8d. Swipp as a case .......................................................................................................................................... 29 8e. Reliability and validity ................................................................................................................................ 30 Chapter 9. Theory ............................................................................................................................................ 30 9a. Porter five Forces ....................................................................................................................................... 30 i. Threat of entrants ......................................................................................................................................... 31 ii. Supplier power ............................................................................................................................................. 32 Page 1 of 262 Hans Mathiesen & Martin Stenderup Master thesis iii. Buyer power ................................................................................................................................................ 32 iv. Threat of substitutes ................................................................................................................................... 32 v. Rivalry between established competitors ................................................................................................... 33 9b. Industry Life Cycle ..................................................................................................................................... 33 9c. Generic strategies ...................................................................................................................................... 33 i. Cost leadership ............................................................................................................................................. 35 ii. Differentiation ............................................................................................................................................. 36 Chapter 10. Criticism of the theory ................................................................................................................. 36 10a. Five Forces Framework ............................................................................................................................ 36 10b. Generic Strategies ................................................................................................................................... 37 10c. Industry Life Cycle .................................................................................................................................... 38 Chapter 11. Literature review ......................................................................................................................... 38 11a. Consumers’ perspective in the mobile payment market ........................................................................ 38 11b. A consumer perspective on Swipp .......................................................................................................... 41 11c. Consumer behavior .................................................................................................................................. 42 Chapter 12. Hypothesis ................................................................................................................................... 42 12a. Porter’s five forces ................................................................................................................................... 42 i. Threats of substitutes ................................................................................................................................... 43 ii. Threat of entry ............................................................................................................................................. 43 iii. Industry rivalry ............................................................................................................................................ 43 iv. Bargaining powers of buyers ...................................................................................................................... 44 v. Bargaining power of suppliers ..................................................................................................................... 44 12b. Quantitative analysis ............................................................................................................................... 45 i. Fear of mobile payment ............................................................................................................................... 45 ii. Future use of mobile payment .................................................................................................................... 45 iii. The usages of mobile payment ................................................................................................................... 45 Chapter 13. Analysis ........................................................................................................................................ 46 13a. Industry Life Cycle ...................................................................................................................................