Yong Wan Park (Barun ICT Research Center, Yonsei University)
Hee Yong Kim (Sogang University)
Fin-Tech, a financial service based on Information Technology, has received lots of attention from global IT companies, and a variety of Fin-Tech services have been launched over the last few years. Most of them focus on the online marketplace, but Tap-and-Pay styled mobile payment service, such as Apple Pay and Samsung Pay, extends to the offline marketplace as well. However, according to Dr. Park’s research, mobile payment service may have difficulty thriving in the market because the convenience of mobile payment service is not sufficient enough to achieve a competitive advantage over the competitor, credit cards. To use mobile payment services, consumers need to run the app, verify the fingerprint, and tap the smartphone on the card reader. When using a credit card, they only need to take out the credit card from their wallet, give it to a shop assistant who swipes it, and then put it back their wallet. It is questionable which one is more convenient and easier to use. For now, there seems to be no difference in convenience. In addition, most consumers have concerns about losing their smartphone, so they are hesitant to adopt the mobile payment service. Therefore, service providers should develop a way to dramatically increase convenience and decrease consumers’ concerns.
Korean Management Review (2016.06 Vol.45, No.3)