The Future of Mobile Payments

Anne-Sofie Mc Nair Rahbek

Student thesis: Master thesis


The mobile payment market is currently changing, and companies need to innovate faster and smarter than previously to ensure their existence in the future. Companies, who have not previously worked with payments, are now trying to enter this market by offering easy payment functions through their already existing platforms and taking advantage of their network effects. These companies are a big threat to the existing mobile payment providers. This research has sought to investigate how mobile payment providers can take advantage of open innovation in order to change their existing product to fit to a changing market. The case company for the research is a major mobile payment provider in Denmark, who is seeking to come up with new ways to innovate to ensure their existence in the long run. The work was done with the research question of “How do mobile payment providers adapt to a changing payment market in order to maintain and defend their market position? “. Since the research touch upon the fields of open innovation, Software as a Service (SaaS) products and the use of open innovation in SaaS products, a literature review was conducted to investigate the already existing literature. The previousliterature has primarily focused on tangible technical products such as machinery and less on technological service products such as SaaS products. It was therefore found that there was a gap in the literature review concerning how to use open innovation on SaaS products, which confirmed that the study could contribute to the existing literature. In order to answer the research question, a case study was conducted investigating the specific case and situation of the case company. The primary data collection method was interviews with five employees at the case company, an innovation expert and the CEO from a partner company. The analysis was conducted using theories of open innovation, multisided platforms, platform canvas, digital ecosystems and the mobile payment market framework. The main finding of the analysis of the gathered data was that the case company is already using open innovation by using knowledge from their subIsuppliers and potential partnering companies in order to innovate. They look at the problems the users are facing to come up with new functionalities. The end result of the analysis was that one way for a mobile payment provider to ensure their existence would be to partner with other companies and turn into a multisided platform. This would create a digital ecosystem, where the payment provider acts as the connecting partner, where smaller companies can latch on and use their data, login functionalities and the like. The research thus contributes to the existing work in the field by showcasing how open innovation can be used on SaaS products in order to ensure the company and the product’s market position and existence in the future.

EducationsMSc in Business Administration and Information Systems, (Graduate Programme) Final Thesis
Publication date2018
Number of pages135
SupervisorsJonas Hedman