Modelling the Genesis and Evolution

Payment transactions through the use of physical coins, bank notes or credit cards have for centuries been the standard formats of exchanging value. Recently online and mobile digital payment platforms has entered the stage as contenders to this position and possibly could penetrate societies thoroughly and replace current physical payment standards. This paper portrays how digital payment platforms evolve in socio-­technical niches and how various technological platforms aim for institutional attention in their attempt to challenge earlier platforms and standards. The paper applies a co‐evolutionary multilevel perspective to model the interplay and processes between technology and institutions wherein digital payment platforms potentially will substitute other payment platforms just like the credit card negated the cheque. We present a framework for understanding the evolution and transitions of payment platforms. We demonstrate the usefulness of the framework in a in-­depth single case study of a prepaid cash card. The learning of past experience with digital payment platforms is demonstrated to be the right starting point for investigations into how new solutions might succeed or fail in the future. Thus we finally discuss how possible venues and routes of transitions appear in current evolution of digital payment platforms.