A Framework for Analyzing Digital Payment as a Multi-sided Platform: A Study of Three European NFC Solutions

Erol Kazan, Jan Damsgaard

    Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review


    Near Field Communication (NFC) is a promising digital payment technology that is expected to substitute cash. However, despite its potential, NFC-based payment has not reached mass adoption on the customer nor on the merchant side. This paper constructs a preliminary framework for studying digital payment systems and analyzing strategies of current market actors, such as banks, mobile network operators, and merchants. These market actors are identified as incumbents or contenders, and they are currently jockeying for digital payment platform leadership. We analyze three different contactless payment systems implemented or planned by different actors in the European market. When synthesizing our observations, we note that all three multi-sided platforms (MSP) can provide fully functional and technically solid NFC payment systems. All three platforms seek to gain a foothold by subsidizing NFC payment instruments to their existing customer base. In addition, they extend their existing platform with other contactless services, thereby transforming existing cards (SIM or debit) from single-purpose to multi-functional cards. Our research extends existing payment literature from the MSP perspective to accommodate technological developments, where technology (NFC) and platform design impact market actor strategies and complementary products.
    Original languageEnglish
    Title of host publicationECIS 2013 Proceedings
    Number of pages12
    Place of PublicationAtlanta, GA
    PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
    Publication date2013
    Article numberPaper 155
    ISBN (Print)9783834924421
    Publication statusPublished - 2013
    EventThe 21st European Conference on Information Systems (ECIS) 2013 - Utrecht University, Utrecht Science Park 'de Uithof', Utrecht, Netherlands
    Duration: 5 Jun 20138 Jun 2013
    Conference number: 21


    ConferenceThe 21st European Conference on Information Systems (ECIS) 2013
    LocationUtrecht University, Utrecht Science Park 'de Uithof'
    Internet address
    SeriesProceedings of the European Conference on Information Systems

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