The growth of payment apps like Alipay, Apple Pay and Samsung Pay, the risks and the benefits, and the problems these create

Abstract

Nowadays, with the development of internet connection and the development of mobile devices, people generally tend to use mobile payment applications more frequently than ever before. Meanwhile, a number of multinational companies want to grad this tremendous market, so a number of payment applications emerged in recent years. Even though mobile payment market has become a mature market in some countries such as China, it still appeared to be an attractive point to develop economy for many countries. This research paper analyzes the features of popular payment applications on the market, using descriptive method to explore how mobile payment influences the traditional payment organizations (banks). Also, this paper focus on the aspect of risk regarding payment applications, applying F-test to test whether the launch of payment applications has significant influence on the risk level of parent companies or not. Meanwhile, this research paper utilizes the multiple regression model to figure out how characteristics of payment applications influence the customers’ usage frequency. The research result shows that launch of payment application has significant influence on the risk level of parent company. In addition, another result is that characteristics (convenience, regionalism, security) of payment application may have no significant influence on consumers’ usage frequency.