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

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  • Insung Son

    (Department of Management, Gyeongsang National University, Jinjudae-ro 501, JinJu 52828, Korea)

  • Sihyun Kim

    (Department of Logistics, Korea Maritime and Ocean University, Busan 49112, Korea)

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.

Suggested Citation

  • Insung Son & Sihyun Kim, 2018. "Mobile Payment Service and the Firm Value: Focusing on both Up- and Down-Stream Alliance," Sustainability, MDPI, vol. 10(7), pages 1-16, July.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:7:p:2583-:d:159563
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    1. Francesca Bartolacci & Andrea Cardoni & Piotr Å asak & Wojciech Sadkowski, 2022. "An analytical framework for strategic alliance formation between a cooperative bank and a fintech start-up: An Italian case study," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(4), pages 115-156.
    2. Inese Mavlutova & Aivars Spilbergs & Atis Verdenhofs & Andris Natrins & Ilja Arefjevs & Tatjana Volkova, 2022. "Digital Transformation as a Driver of the Financial Sector Sustainable Development: An Impact on Financial Inclusion and Operational Efficiency," Sustainability, MDPI, vol. 15(1), pages 1-24, December.
    3. Xinqian Huang & Liang Xu & Jun Liu & Ying Huang, 2022. "Enhancing Economic Sustainability with Credit Payment Services in a Dual-Channel Supply Chain," Sustainability, MDPI, vol. 14(14), pages 1-14, July.
    4. Xin Lin & RunZe Wu & Yong-Taek Lim & Jieping Han & Shih-Chih Chen, 2019. "Understanding the Sustainable Usage Intention of Mobile Payment Technology in Korea: Cross-Countries Comparison of Chinese and Korean Users," Sustainability, MDPI, vol. 11(19), pages 1-23, October.

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