What is the extent to which mobile payment systems are changing the banking industry in Norway?
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Disruptive innovation has gained popularity over the past two decades. Globally, the banking sector having been affected by the financial depression in 2008 and has started implementing innovation in its systems. In Norway, innovation plays a big role in the economy as well as on the social aspect. The use of mobile phones to do banking is one of the disruptive moves by banks in Norway. In light of these development, the challenge is that while a scholars have attention to product and service innovation, studies on disruptive innovation remains sparse. A recent study in Sweden focusing on mobile payment systems has looked at how users related to different payment systems and their preference. Accordingly, this study focusing on users in the Norwegian context investigated the drivers, barriers and responses to mobile payment systems. The study was qualitative and cross-sectional involving semi-structured interviews of users who are millennials. Data analysis involved based on themes identified in the literature. The findings reveal that that mobile application systems in the banking industry in Norway have been widely adopted by the market, particularly millennials. While this has been driven by the convergence of innovation, shift towards a digital and cashless society, social influence and customer demands, the findings also show that security, transaction time, difficulty of use and the application acts as barriers to the adoption of mobile payment systems. The findings suggest that banks and Fin-tech companies need to address these barriers for the successful adoption of mobile payment system by the market. At the same time, there is need for policy makers, particularly government to come with the necessary regulatory mechanisms that support the adoption of disruptive innovation.
Master's thesis in Business Administration