Digital Transformation. The Influence of New Payment Service Providers on Purchasing Behavior Using the Example of Klarna

Table of Contents

1 Introduction

2 Theoretical Foundation

2.1 Digital Transformation

2.1.1 Definition

2.1.2 Change in consumption through digitalization

2.1.3 Consumption and Commerce 4.0

2.2 Consumer and purchasing behavior

2.2.1 Definition

2.2.2 Different types of decision-making

2.2.3 Factors affecting consumer’s purchasing decision

2.2.4 Consumers purchasing model

2.3 Digital payment and provider

2.3.1 Customer journey in transition

2.3.2 Payment service provider

2.3.3 Influencing factors

2.3.4 The merchant’s point of view

2.3.5 Gen Y and Gen Z

3 Methodology

3.1 The research project and objective

3.2 Data collection

3.3 Questionnaire

3.4 Payment provider: Klarna

4 Results

4.1 Demographic characteristics

4.2 Use and purpose of the Internet

4.3 Frequency, types, and spending of shopping per month

4.4 Payment habits

4.5 Choice and use of digital providers

5 Discussion

5.1 Contributions to theory

5.2 Limitations and future work

6 Conclusion

Research Objectives and Themes

The primary objective of this bachelor's thesis is to investigate how new digital payment providers influence the purchasing behavior of consumers, utilizing Klarna as a central case study. The work seeks to determine the extent to which digital payment options, particularly "Buy Now, Pay Later" models, affect consumer decision-making processes and if they lead to changes in shopping patterns among younger generations.

• Digital transformation and its impact on modern consumption and commerce.
• Theoretical frameworks of consumer behavior and the stages of the purchasing decision process.
• The evolution of the digital payment landscape, specifically the role of payment service providers.
• Customer-centric requirements and factors influencing payment method preferences in e-commerce.
• Empirical analysis of purchasing and payment habits among individuals aged 20 to 30.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides an overview of the global shifts in e-commerce driven by digitalization, technical breakthroughs, and the resulting changes in consumer purchasing patterns.

2 Theoretical Foundation: Establishes the theoretical framework by defining digital transformation, consumer purchasing models, and the landscape of modern digital payment providers and their influence on the customer journey.

3 Methodology: Details the empirical research design, which employs a quantitative strategy using an online survey to collect primary data from individuals aged 20-30 regarding their internet usage, shopping habits, and interaction with Klarna.

4 Results: Presents the findings from the questionnaire, covering demographic data, internet consumption habits, the frequency and volume of online shopping, and insights into specific payment method preferences, notably Klarna.

5 Discussion: Analyzes the empirical results against the theoretical framework, highlighting how digital payment providers like Klarna align with consumer decision-making styles and the requirements of the modern online retail environment.

6 Conclusion: Summarizes the key insights, confirming that digital transformation and payment providers significantly influence consumer purchasing behavior and emphasizes the necessity for businesses to adapt to these shifting dynamics.

Keywords

Digital Transformation, E-commerce, Purchasing Behavior, Digital Payment, Klarna, Consumer Decision-Making, Customer Journey, Buy Now Pay Later, Online Retail, Payment Service Provider, Millennials, Generation Z, Consumption 4.0, Payment Habits, Transaction Security.

Frequently Asked Questions

What is the core focus of this thesis?

The thesis focuses on the impact of digital transformation on the retail sector, specifically investigating how new digital payment service providers influence consumer purchasing behavior in Germany.

What are the primary thematic areas covered in the work?

The work covers digital transformation, current trends in consumer purchasing behavior, the evolution of the customer journey in e-commerce, the functionality of payment service providers, and the specific payment habits of younger generations.

What is the main objective or research question?

The primary research question addressed is: "In the context of digital transformation: Are new payment service providers influencing purchasing behavior?"

Which research methodology was applied?

The study utilized a combined approach: a comprehensive literature review of existing theories and a quantitative empirical study conducted through a structured online survey targeting individuals aged between 20 and 30.

What topics are discussed in the main body?

The main body treats the theoretical foundations of digital consumption, analyzes the five-step consumer purchasing model, details the role of payment service providers like Klarna from both customer and merchant perspectives, and discusses the empirical findings regarding payment habits.

What are the characterizing keywords?

The study is characterized by terms such as Digital Transformation, E-commerce, Purchasing Behavior, Digital Payment, and Consumer Decision-Making.

Why was Klarna chosen as the case study?

Klarna was selected as the reference point because it is a prominent European bank and payment provider that significantly reshapes the payment experience through innovative services like "Buy Now, Pay Later" (BNPL), which are particularly popular among younger target demographics.

How does the use of "Buy Now, Pay Later" (BNPL) specifically affect consumers?

The study suggests that BNPL services act as a transitional tool that allows consumers to purchase items—such as clothing in multiple sizes—without immediate payment, thereby facilitating returns and reducing financial barriers at the point of checkout, though it also poses potential risks of impulsive shopping.

What insight does the study provide regarding merchant perspectives?

From the merchant's view, partnering with digital payment providers is highlighted as a strategic necessity to minimize shopping cart abandonment, reduce purchase cancellations, and secure transactions, ultimately boosting recurring business.