While most popular features operate at a net loss to attract users, it gains profit from transaction fees on business payments and small fees from value-added services.
While most popular features operate at a net loss to attract users, it gains profit from transaction fees on business payments and small fees from value-added services.
While most popular features operate at a net loss to attract users, it gains profit from transaction fees on business payments and small fees from value-added services.
While most popular features operate at a net loss to attract users, it gains profit from transaction fees on business payments and small fees from value-added services.
Authors Tommi Kunnari & Teemu Ketonen About Operating offices
Mobile payment platform to
facilitate transactions
Initially launched in 2013 by
Danske Bank in Denmark
Emerged as the clear winner
and has since expanded to Norway and Finland
Over 6,2 million users
Business Model
Sound business model and strategy contributed to success
Centered around user-friendly and convenient payment platform
Can be classified into various business models, including e-
Transaction and platform business model Business model Finance Model Revenue Model
Procurement Model Value Creation Model Market Offer Model Customer Model
Suppliers Services Performance
User-friendly Private P2P payments • Presentation and convenient customers • IT Payments • Distribution payment infrastructure • Banks method Value added Interaction services • Exchange money Clients Financing Payment Revenues Business Business clients Banks Returns platform payments • Transaction and service fees
Strategy Model Competencies/Resources Model Network Model
• Become the preferred mobile platform • Large and growing user base • Payment service providers in Nordics • Strong brand • Banks • Make everyday payments effortless for • Ease of use • Partnerships individuals • Strong IT resources • Suppliers Procurement Model
Bank/credit Banks Cloud services card providers
Professionals Commercial for IT and Regular users users support Finance Model
Refinancing Financed by with business Cost structure banks transactions
Professionals Marketing Transaction and IT costs fees infrastucture Value creation • The process of turning labour and resources into need fulfilling assets • Most used feature is essentially a net-loss operation for MobilePay => Focus on attaining users • Dankort debit card system of Nets used to handle payments • Makes profit with commercial features, such as company payments, gift cards, etc.
• In a nutshell: - Attract users with popular net-loss features - Gain profit with commercial actors attracted by amount of users Market offer Revenue Model
TRANSACTION FEES ON SMALL FEES ON VALUE-
BUSINESS TRANSACTIONS ADDED SERVICES Customer model • Divided into two actors: • Private • Business Interaction between these two groups => Value Strategy Model
Mission Vision Strategy
Simplify life Become the preferred platform for Compete against global tech giants everyday exchanges like Google and Apple in the Nordics Resource model • Open business model allows anyone to become a user • Technical infrastructure allows for scalability, ease-of-use, and responsive functionality • Strong brand, especially in Denmark where it was ranked the best in 2022 Network model • Transaction system uses third-party transaction providers, such as the previously mentioned Dankort • Integration and cooperation with banks, such as Danske Bank • Many commercial partners in the shape of payment system users, service providers, app payments... SWOT Analysis
Strengths Weaknesses Opportunities Threats
• User-friendly and • Limited • Expansion to • Strong
convenient availability other counties competition payment platform • Dependence on • New partnerships • Regulations • Strong brand banks and integrations • Security threats • Large user base in • Dependence on • New features • Economic factors operating mobile devices countries • Singular revenue • Strong IT stream resources • Funded by banks Conclusions
Emerging payment platform in
the Nordics MobilePay and Vipps merged into Vipps MobilePay
The MSP’s Guide to the Ultimate Client Experience: Optimizing service efficiency, account management productivity, and client engagement with a modern digital-first approach.
The MSP’s Guide to the Ultimate Client Experience: Optimizing service efficiency, account management productivity, and client engagement with a modern digital-first approach.
