Introducing a New Payment Method in Finnish E-Commerce

Abstract

This study evaluates Company X’s pilot of a new financing payment method targeted at high-value e-commerce transactions in the Finnish market. Finland’s unique market characteristics, including a highly conservative consumer base, a competitive landscape with strong preferences for bank payments, and strict regulatory standards, present distinctive challenges and opportunities for introducing new payment options. The primary objective was to assess the effectiveness of Company X’s go-to-market strategy within this ecosystem and identify the factors driving adoption by merchants, platform providers and consumers.

The theoretical framework draws on Porter’s Five Forces, ecosystem theories, and platform theories, providing insights into the competitive pressures, interdependencies, and compliance challenges within Finnish e-commerce environment. Employing a qualitative case study approach, the research combined semi-structured interviews, internal data from Company X, and market reports. This multi-source data collection revealed critical themes, such as the central role of consumer trust, the importance of seamless integration with existing platforms, transparency in terms and pricing, regulatory compliance, and the attractiveness of financing options designed for high-value purchases.

Key findings emphasize the need for payment method providers to prioritize trust-building, particularly through strategic partnerships with established banks, PSPs, and e-commerce platforms, which can lend credibility and address consumer concerns around debt and security. Recommendations for Company X and similar providers include adopting transparent communication strategies, investing in post-transaction automation for operational efficiency, and aligning with Finnish regulatory standards as a means of reinforcing trust.

Further research is recommended to deepen understanding in areas such as influencing consumer behavior shifts from bank payments to other payment methods such as Buy Now Pay Later (BNPL), analyzing generational differences in attitudes toward digital finance, and conducting comparative studies on payment method adoption across the Nordic countries. These areas of future inquiry would support a more tailored and effective approach to new payment method implementation in Finland and could inform strategies for broader expansion within the Nordic region. In conclusion, a gradual, trust-based approach, aligned with local consumer preferences and regulatory requirements, will be essential for payment method providers aiming to achieve sustainable growth in the Finnish e-commerce payment method landscape.