Has Mobile Payment Finally Live Up to Its Expectation in Replacing Cash and Credit?

Document Type: Conceptual Paper


Center of Southern New Hampshire University Program, Help College of Art and Technology, Kuala Lumpur, Malaysia


The purpose of this paper is to study whether mobile payment is a better payment method compared to cash and credit. Mobile payment is an innovative way of paying our bill using our mobile devices. However, it has failed to live up to its expectation when it first introduced to the market decades ago with various of impeding factors like cost, complexity, lack of trust from the consumers as well as limited network externalities. Today, with the advance of technology, consumers’ demand for a faster and convenient payment method as well as the implementation of many merchants or companies, mobile payment is starting to replace conventional payment method. As a whole, this research paper concludes that mobile payment is going to replace cash and credit and to be successful globally in the near future.


Archer, M. (2014, October, 16). Mobile Payments Have Finally Arrived. So What’s Next. Payments Source. Retrieved from http://www.paymentssource.com/news/interchange/mobile-payments-have-finally-arrived-so-what-is-next-3019417-1.html
Camhi, J. (2014, December 19). 5 Things to Expect in Mobile Payments in 2015. Bank System & Technology. Retrieved from http://www.banktech.com/payments/5-things-to-expect-in-mobile-payments-in-2015/d/did/1318300
Colt, S. (2014, December, 21). Here’s Where People Are Using Apple Pay The Most. Business Insider, Tech. Retrieved from http://www.businessinsider.my/apple-pay-statistics-2014-12/#.VMNDjEeUdAo
Dahlberg, T., Mallat, N., Ondrus, J., &Zmijewska, A. (2007). Past, Present and Future of Mobile Payment Research: A Literature Review. Electronic Commerce Research and Applications. doi: 10.1016/j.elerap.2007.02.001 
eMarketers. (2014, December 11). 2 Billion Consumers Worldwide to Get Smart (phones) by 2016. Retrieved from http://www.emarketer.com/Article/2-Billion-Consumers-Worldwide-Smartphones-by-2016/1011694 
Hernandez,W. (2015. January, 15). Mobile Payments 5 for 5: Focus on Digital Wallets. Mobile Payments Today. Retrieved from: http://www.mobilepaymentstoday.com/articles/mobile-payments-5-for-5-focus-on-digital-wallets/
Gobry, P. E. (2012, July 11) Mobile Payments: What’s Taking So Long, and Who’s Going to Win. Business Insider. Retrieved from http://www.businessinsider.com/mobile-payments-whats-taking-so-long-and-whos-going-to-win-20126?IR=T&
Hayashi, F., & Bradford, T. (2014). Mobile Payments: Merchants’ Perspectives. Economic review, 5-30. Retrieved from http://www.kc.frb.org/publicat/econrev/pdf/14q2hayashi-bradford.pdf
Heggestuen, J. (2014, February 25). Carrier Billing is Back and It’s Becoming A Popular Way to Pay on Phones. Business Insider. Retrieved from http://www.businessinsider.my/carrier-billing-hasnt-gone-away--here-is-why-it-has-got-developers-app-stores-and-mobile-carriers-so-excited-2014-2/#LLBOjlT7AthjlHH7.97
Khiaonarong, Tanai. (2014). Oversight Issues in Mobile Payment. Retrieved from http://site.ebrary.com.ezproxy.snhu.edu/lib/snhu/docDetail.action?docID=10913240
Kreyer, N., Pousttchi, K., &Turowski, K. (2007). Characteristics of Mobile Payment Procedures. The Thirteenth International Symposium on Methodologies for Intelligent System (2002), 10-22. Retrieved from http://mpra.ub.uni-muenchen.de/id/eprint/3786
Li, X. (2015, October 17). Apple Pay’s Invasion of China Stalls. Caixin Online. Retrieved from http://www.marketwatch.com/story/apple-pays-invasion-of-china-stalls-2015-02-16
Mallat, N. (2007). Exploring Consumer Adoption of Mobile Payments – A Qualitative Study. The Journal of Strategic Information Sysrem, 16(4), 413-432. doi: 10.1016/j.jsis.2007.08.001 
Mobile Payment Acceptance. (2014). Retrieved from http://www.tsys.com/Assets/TSYS/downloads/is_tas-mobile-payment-acceptance.pdf
Near Field Communication. (2012). History of Mobile & Contactless Payments System. Retrieved from http://www.nearfieldcommunication.org/payment-systems.html
PortioResearch. (2015). Mobile Payments 2013-2017. Retrieved from http://www.portioresearch.com/en/mobile-industry-reports/mobile-industry-research-reports/mobilepayments-2013-2017.aspx
PayAnywhere. (2015). Retrieved from http://www.payanywhere.com/features#mobile
PYMNTS. (2015, Jan 15). What’s So Different about China’s Mobile Payments’ Ecosystem? Retrieved from http://www.pymnts.com/in-depth/2015/whats-driving-chinas-mobile-pay-ecosystem/#.VN8GlvmUdAo
Richard, H. (2013 February 7). A Different Perspective: Consumer Adoption of Payment Innovation. Retrieved from http://www.intelligenthq.com/technology/a-different-perspective-consumer-adoption-of-payments-innovation/
Rogers, B. (2014, March 18). Who Is Leading The Digital Mobile Payment Influence Battle? Forbes. Retrieved from http://www.forbes.com/sites/brucerogers/2014/03/18/who-is-leading-the-digital-mobile-payment-influence-battle/
Soat, M. (2014). Mobile Payments, Global Adoption. Marketing News, 48(11), 14-15.
Smart Card Alliance. (2011, September). The Mobile Payments and NFC Landscape: A US Perspectives. Retrieved From http://www.smartcardalliance.org/resources/pdf/Mobile_Payments_White_Paper_091611.pdf
Stokes, N. (2014, September 24). The Good, The Bad & The Ugly of Mobile Payment. Techlicious. Retrieved from http://www.techlicious.com/tip/what-you-need-to-know-about-paying-with-your-smartphone/
Talls, M.E., & Van, T. (2012). The Swedish Mobile Payment Market: An Analysis from A Consumer’s Perspective. Master of Science. Retrieved from http://www.diva-portal.org/smash/get/diva2:565105/FULLTEXT01.pdf
Varma, J. (2014, September 17). 3 Reasons to get involved in Your Merchants’ mPOS Adoption. Retrieved from https://www.pcicomplianceguide.org/3-reasons-to-get-involved-in-your-merchants-mpos-adoption/