The Impact of Mobile Payments on Traditional Banks and the Countermeasures Adopted by Traditional Banks

This study seeks to investigate the influence of the accelerating adoption of mobile payments on traditional banking services, with particular emphasis on addressing pertinent challenges related to user acceptance, security and privacy protection, technological infrastructure, as well as regional differences and market demands. The importance of this issue lies in the necessity for banks to maintain competitiveness and for scholars to deepen their understanding of the effects of financial technology (fintech) on conventional financial institutions. To achieve this objective, the study employs systematic literature review and case analysis methodologies to assess the evolution of mobile payments across various global regions and to explore the responsive strategies enacted by traditional banks in these contexts. The findings reveal that the rise of mobile payments has profoundly transformed the operational landscape for traditional banks. In response to these transformations, banks must enhance user experience, bolster data security and privacy measures, upgrade technological infrastructure, and formulate strategies that cater to regional market requirements. The implications of this research encompass the provision of specific strategic recommendations for traditional banks to navigate the repercussions of mobile payments and the establishment of a new theoretical framework for future inquiries within the field of financial technology.