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Top1. Introduction
Sweden is a leading country towards a cashless society. According to central bank the Riksbankin 2016, in Sweden the cash transactions made up barely 2% of the value of all payments which will lead dropping to 0.5% by 2020. For instance, in merchants, cash is now used approximate 20% of transactions. Besides surprisingly, about 900 of Sweden’s 1,600 bank branches no longer provide cash or receive cash deposits (Sveriges Riksbank, 2013). Due to this digital wave with a high smartphone penetration, mobile payments have become a highly innovative and dynamic sector in Sweden which characterised by aggressive competition based on technology to gain dominance of the market (Ondrus &Lyytinen 2011). In this context, traditional industries such as banking, are highly resistant to transformation since the existing of strict regulation and slowly developing technologies. However, the situations have changed since last two decades (Tornjanski et al., 2015). Recently, changing occurs through a highly competitive market and disruptive technology which puts a burden on banks to innovate through understanding changes and the competitive forms and ways to handle strategic approaches (Achrol, 1991; European Financial Forum, 2015). Further, the rapid digitization has results such as collapse of industry boundaries, creation of new opportunities and increase of challenges. This phenomenon is termed as digital disruption that will play an important role to form banking industry in next coming years (Weill & Woerner, 2015). Recently, banks are forced to strengthen their competitive market through building digital platforms to provide mobile payment services (Hedman & Henningsson, 2015). Digital platforms are facilitating industry disruptions (Christensen, 2013). Recently, it is becoming obvious that the speed up of technological transformation is the most creative force and also, the most critical one in the payment services industry (Gardner, 2009). This study sets out to screen the implications of these technological innovations on the payment services industry which develop via digital platforms.