An Investigation of Digital Payment Platform Designs

A Comparative Study of Four European Solutions

Erol Kazan, Jan Damsgaard

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

    Abstract

    This paper focuses on the triumph march of mobile phones that currently are annexing music players, navigation devices, and cameras as separate physical objects. The next target is set on payment. Through synthesizing available literature, we construct a framework for studying digital payment platforms that combines platform, technology and business design aspects. The framework is applied to conduct a comparative case study of digital payment platforms. Four types of market actors are considered: banks, mobile network operators, merchants, and startups, which are incumbents and disrupters in the payment industry. These actors issue four types of payment systems, and we can observe that three of four platforms types can be classified as multi-sided platforms (MSP). All alternatives seek foothold by issuing evolutionary payment instruments, which are intertwined with digital payment platforms. By hosting third-party services, payment instruments are evolving from single-purpose to multi-functional ones. Our research extends existing payment literature from the MSP perspective to emphasize certain digital payment platform components, which impact strategies and complementary products.
    Original languageEnglish
    Title of host publicationECIS 2014 Proceedings
    EditorsMichel Avital, Jan Marco Leimeister, Ulrike Schultze
    Number of pages14
    Place of PublicationAtlanta, GA
    PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
    Publication date2014
    ISBN (Print)9780991556700
    Publication statusPublished - 2014
    EventThe 22nd European Conference on Information Systems (ECIS) 2014: Digital Work, Digital Life - David Intercontinental Hotel, Tel Aviv, Israel
    Duration: 9 Jun 201411 Jun 2014
    Conference number: 22
    http://ecis2014.eu/

    Conference

    ConferenceThe 22nd European Conference on Information Systems (ECIS) 2014
    Number22
    LocationDavid Intercontinental Hotel
    CountryIsrael
    CityTel Aviv
    Period09/06/201411/06/2014
    Internet address
    SeriesProceedings of the European Conference on Information Systems
    ISSN0000-0034

    Cite this

    Kazan, E., & Damsgaard, J. (2014). An Investigation of Digital Payment Platform Designs: A Comparative Study of Four European Solutions. In M. Avital, J. M. Leimeister, & U. Schultze (Eds.), ECIS 2014 Proceedings Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the European Conference on Information Systems
    Kazan, Erol ; Damsgaard, Jan. / An Investigation of Digital Payment Platform Designs : A Comparative Study of Four European Solutions. ECIS 2014 Proceedings. editor / Michel Avital ; Jan Marco Leimeister ; Ulrike Schultze. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2014. (Proceedings of the European Conference on Information Systems).
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    title = "An Investigation of Digital Payment Platform Designs: A Comparative Study of Four European Solutions",
    abstract = "This paper focuses on the triumph march of mobile phones that currently are annexing music players, navigation devices, and cameras as separate physical objects. The next target is set on payment. Through synthesizing available literature, we construct a framework for studying digital payment platforms that combines platform, technology and business design aspects. The framework is applied to conduct a comparative case study of digital payment platforms. Four types of market actors are considered: banks, mobile network operators, merchants, and startups, which are incumbents and disrupters in the payment industry. These actors issue four types of payment systems, and we can observe that three of four platforms types can be classified as multi-sided platforms (MSP). All alternatives seek foothold by issuing evolutionary payment instruments, which are intertwined with digital payment platforms. By hosting third-party services, payment instruments are evolving from single-purpose to multi-functional ones. Our research extends existing payment literature from the MSP perspective to emphasize certain digital payment platform components, which impact strategies and complementary products.",
    keywords = "Payment, Payment card, Mobile phone, Multi-sided platforms, Near Field Communication (NFC), Contactless payment, SMS, QR Code, Mobile payment, Payment infrastructure, Payment systems",
    author = "Erol Kazan and Jan Damsgaard",
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    editor = "Avital, {Michel } and Leimeister, {Jan Marco } and Schultze, {Ulrike }",
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    Kazan, E & Damsgaard, J 2014, An Investigation of Digital Payment Platform Designs: A Comparative Study of Four European Solutions. in M Avital, JM Leimeister & U Schultze (eds), ECIS 2014 Proceedings. Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the European Conference on Information Systems, Tel Aviv, Israel, 09/06/2014.

    An Investigation of Digital Payment Platform Designs : A Comparative Study of Four European Solutions. / Kazan, Erol; Damsgaard, Jan.

    ECIS 2014 Proceedings. ed. / Michel Avital; Jan Marco Leimeister; Ulrike Schultze. Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2014. (Proceedings of the European Conference on Information Systems).

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

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    AU - Damsgaard, Jan

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    AB - This paper focuses on the triumph march of mobile phones that currently are annexing music players, navigation devices, and cameras as separate physical objects. The next target is set on payment. Through synthesizing available literature, we construct a framework for studying digital payment platforms that combines platform, technology and business design aspects. The framework is applied to conduct a comparative case study of digital payment platforms. Four types of market actors are considered: banks, mobile network operators, merchants, and startups, which are incumbents and disrupters in the payment industry. These actors issue four types of payment systems, and we can observe that three of four platforms types can be classified as multi-sided platforms (MSP). All alternatives seek foothold by issuing evolutionary payment instruments, which are intertwined with digital payment platforms. By hosting third-party services, payment instruments are evolving from single-purpose to multi-functional ones. Our research extends existing payment literature from the MSP perspective to emphasize certain digital payment platform components, which impact strategies and complementary products.

    KW - Payment

    KW - Payment card

    KW - Mobile phone

    KW - Multi-sided platforms

    KW - Near Field Communication (NFC)

    KW - Contactless payment

    KW - SMS

    KW - QR Code

    KW - Mobile payment

    KW - Payment infrastructure

    KW - Payment systems

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    Kazan E, Damsgaard J. An Investigation of Digital Payment Platform Designs: A Comparative Study of Four European Solutions. In Avital M, Leimeister JM, Schultze U, editors, ECIS 2014 Proceedings. Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). 2014. (Proceedings of the European Conference on Information Systems).