CURRENT STATE OF MOBILE PAYMENTS IN FINLAND : Drivers and obstacles in diffusion and adoption of mobile payments

Abstract

The topic of this thesis originated from the working life, in spite of the fact that the topic was not commissioned by any company. The importance of digital services and the transition from computers to mobile devices have enabled new solutions in addition to the traditional payment methods. The landscape of payments has changed drastically over the past decade and not vast amount of up-to-date data is available on mobile payments. Mobile payments have been available in many forms in Finland over the past decade, yet many solutions have failed to exist. The aim of this thesis is to provide insights on the current state of mobile payments in Finland. The focus is on the drivers and barriers in mobile payment diffusion among the consumers. Theoretical framework is built on two theories and models previously used in examining similar phenomena, thus granting credibility on the framework. The innovation diffusion theory is in central and it is complemented by technology acceptance model and the revised chasm model in the technology adoption lifecycle. Quantitative methods were used in collecting the data. Response rate was 6 percent consisting of 88 respondents. The main findings in this study indicate that majority of the respondents were familiar with the concept of mobile payments, yet mobile payments were adopted by 24 percent. Mobile payments were seen as a rather positive phenomenon but the security was the biggest concern in comparison to card payments. The perceived value and relative advantages were not evident among the respondents but the results support the previously proposed effects on the attitudes towards mobile payment adoption in other studies. Further study on mobile payments is needed and standardization and the merchant adoption are in crucial role in reaching the critical mass and transitioning from the early market to mainstream market