MobilePay and Digital Disruption in the Mobile Payments Industry

Rasmus Marker Nielsen & Simon Bach Bjerring

Student thesis: Master thesis


This paper investigates the dynamics of the Danish mobile payments market and the Strategy of Danske Bank’s MobilePay division through the lens of a composite theoretical framework. This is done in order to answer the question of how MobilePay achieved its current dominant market status and how it may align its strategy to face future competition. The paper finds that being the first mover and leveraging strong network effects, with adjacent switching costs and lock-in for consumers and vendors in a three-party market, was crucial to MobilePay’s strategic success so far. Based on theories of information economics, innovation models, and disruption, the paper reaches the recommendation that MobilePay should implement a strategy with a focus on network growth through exclusivity deals in IT infrastructure, as well as establishment of a greater ecosystem, and setting pricing to free for all users in order to remain competitive in the future.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
Publication date2016
Number of pages128