Strengthening Payment Gateway Business Models Using Root Cause Analysis and the Business Model

Hajar Ismail1, & Dodie Tricahyono2
1,2 Department of Management, Faculty of Economics and Business Telkom University, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2024.71206

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Abstract

The payment gateway industry in Indonesia is rapidly growing, with the Finpay Payment Gateway being a key product. However, its market share is only 4%, indicating ongoing issues and shortcomings. This study aims to explore these issues using Root Cause Analysis (RCA) and Business Model Canvas (BMC) approaches. The research is a descriptive qualitative study, using observation and interviews for data collection.

Using a fishbone diagram approach, the study identifies the root cause of the problem using RCA. A Business Model Canvas (BMC) is then created using a Business Model Pivot (BMP) to determine the right business model for Finpay Payment Gateway. The analysis of the BMC reveals that Finpay Payment Gateway has a solid foundation in managing customer segments and offering a specific value proposition. However, several areas require further attention to increase competitiveness in the highly competitive Payment Gateway aggregator industry.
The RCA analysis identifies structural and operational challenges, such as policies, regulatory compliance, lack of innovation, and complex processes, as the root causes of the problems. The study recommends adjustments to the existing BMC to address these issues.

Keywords: business model canvas, business model pivot, root cause analysis, fishbone diagram

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