In this paper, we have conceptually and empirically investigated the factors that affect the success of mobile payment systems. While many factors are at play at the same time, a number of them stood out at this early stage of their life cycle. In the area of consumer acceptance, these are their cost relative to other payment methods, their ease of use, and their perceived risk. In the area of merchant acceptance, transaction fees compared to debit and credit card systems are important, as is, to a significant extent, the ease of use for the merchant. Finally, both customer and merchant acceptance are highly interdependent as each influences the other, especially during the early stages of the lifecycle