Mobile Payment Service and the Firm Value: Focusing on both Up- and Down-Stream Alliance

Abstract

The Fintech business, which was initially focused on the payment sector, is becoming a global issue due to the entry of nonfinancial firms into the banking business. With the advent of the “mobile age in your hand”, global ICT companies are actively entering the banking business through alliances and competitions with existing financial companies. Classifying the alliance companies of Apple Pay and Samsung Pay into the downstream alliance and the upstream alliance, this study analyzed the signaling effect of service opening and its impact on the firm value. To analyze the effect of a specific event on firm value, this study adopted the event study. Additionally, ordinary least squares regression analysis was carried out to examine the influence of up- and downstream alliance on the firm value. The result shows that Apple Pay’s service launch in the USA. has a positive impact on stock prices of up- and downstream alliance companies, providing new experience and satisfaction to users through active alliance with credit card companies. On the other hand, downstream alliance companies that showed a negative response to the launch of Korean services turned to a positive response to USA service launch because to the difference in the specificity of credit card penetration rate and the portion of premium smartphones. Analyzing the impact of the expansion of the service area toward the payment platform on the firm value, research results provide important implications for establishing technology management strategies to ensure the sustainability in rapidly changing technical advances by comparing the different market response of Apple Pay and Samsung Pay.

Improving the Sustainable Usage Intention of Mobile Payments: Extended Unified Theory of Acceptance and Use of Technology Model Combined With the Information System Success Model and Initial Trust Model

“…Due to the need for a tedious payment operation and a large amount of consumer personal information, it is easy to make users feel weary. By analyzing the response of the international cross-border consumer market of Kakao Pay and Samsung Pay, Son and Kim (2018) discovered management strategies can ensure the sustainable development of rapid technology. By comparing the conversion intention between Samsung pay and Kakao Pay, Lee et al (2017) firmly believed the more benefits obtained after the conversion of different m-payment platforms, the stronger the convenience experience brought by the conversion of different m-payment platforms, the safer the conversion process, the stronger the conversion intention of consumers between different m-payment tools will be.…”

Understanding the Sustainable Usage Intention of Mobile Payment Technology in Korea: Cross-Countries Comparison of Chinese and Korean Users

“…Chun [17] stated that when arguments arose between customers and companies in electronic businesses, responsibility allocation was crucial to the sustainability of e-commerce. By analyzing the market reactions to Samsung Pay and Apple Pay, Son and Kim [18] revealed that technology administration policies could confirm the sustainability of fast-changing technological progress. Other authors have used various typical structural equation models, including the technology acceptance model (TAM), UTAUT, and the unified theory of acceptance and use of technology 2 (UTAUT2), as the basic structures in their research to identify any factor that can affect m-payment usage willingness [11,19].…”

Determinants of the Intention to Use Cross-Border Mobile Payments in Korea among Chinese Tourists: An Integrated Perspective of UTAUT2 with TTF and ITM

“…Technological progress can provide a wide range of functions for mobile equipment and support multiple mobile financial services, such as bill payment, account transfer, payment at points of sales, and remote payment services [1], and other types of services, such as positioning-based mobile marketing, ticket, discount, or coupon [2]. The extensive use and popularity of mobile devices enables people to use mobile payment without taking the wallet with them, thus equipping smartphones with real commercial value in mobile payment [3].…”