Cashless Society and Mobile Payments

Assistant Professor Niklas Arvidsson at Industrial dynamics department at KTH is running a project on Cashless society. The main objective is identify and describe the potential consequences of “cashless-ness” for consumers, merchants, public transportation, banks, payment providers, mobile operators, etc.

Within this project a number of workshops have been organized. One workshop was run March 13 with focus on merchants and the hotel and restaurant sector and another one March 15 with participants from the financial sector. Some of the interesting findings from the workshops are:

• For the Swedish market it was clear that the workshop participants believe that it will take many decades before cash is replaced at a 90% or 95 % level.
• Mobile payments should primarily be discussed in terms of how agreements are established with merchants and how the payment solutions are integrated with consumer’s bank and credit cards accounts. Now there is a trend to focus on contactless technology, use of QR codes, availability of NFC phones, security solutions, and location of secure elements.
• A strong driver for making mobile payments to happen can probably be to use the mobile phone as a “market channel” to the consumer. Payment services and value added services can be integrated.

The last item supports the main idea of the proposed KTH research project “Mobile payments – Not only transactions” with focus on services and different forms of value added before and after the actual moment of the purchase and transaction.

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