The popular digital currencies without any physical borders, national

The threat from
the substitute products is high in the digital payment industry. Mobile
payment methods are considered more convenient, then any other method. The
mobile phone has become a disruptive payments platform for new innovations and
is attempting to replace cash and checks. Bitcoin is one of the popular digital
currencies without any physical borders, national sovereignty or middlemen and
is an internet-wide payment system where transactions happen with very low
fees. Digital currencies have the potential to disrupt the high-fee world of
banking through new ways of paying for goods and services. The above
innovations, amongst others, address the current inefficiencies in the payments
marketplace and can provide a superior digital experience to consumers.

 

 

The threat of new entrants is high as the
market of payment is rapidly growing and so new apps and technology is
constantly becoming available. The digital payment industry is Highly
regulated & huge capital requirement results in market dominated by
traditional big players such as bank and credit card companies. This potential
market however is being reached more through services such as PayPal and apple
pay, who are being charged a small fee to complete a transaction with a
merchant. New entrants also find the industry difficult to enter because of the
capital intensity required to set up a payments network. However, Bitcoin could
be the future of digital payment industry as it is not regulated and so there
is no big domination.

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The
regulators in the digital payment industry are medium as it is government intervened
and therefore secure. Bitcoin could possibly succeed in the digital payment
industry. Bitcoin is not controlled by any bank or central authority, which
makes the government very interested in it as they could tax customers using,
how