Abstract
| Original language | English |
|---|---|
| Article number | 602 |
| Journal | Electronic Commerce Research and Applications |
| Volume | 14 |
| Issue number | 5 |
| Pages (from-to) | 319-330 |
| Number of pages | 12 |
| ISSN | 1567-4223 |
| DOIs | |
| Publication status | Published - 2015 |
Cite this
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The Race to Dominate the Mobile Payments Platform : Entry and Expansion Strategies. / Staykova, Kalina Stefanova; Damsgaard, Jan.
In: Electronic Commerce Research and Applications, Vol. 14, No. 5, 602, 2015, p. 319-330.Research output: Contribution to journal › Journal article › Research › peer-review
TY - JOUR
T1 - The Race to Dominate the Mobile Payments Platform
T2 - Entry and Expansion Strategies
AU - Staykova, Kalina Stefanova
AU - Damsgaard, Jan
PY - 2015
Y1 - 2015
N2 - The payment market has been stable for a number of decades with well-defined roles (acquirers and issuers), profitable business models (the card schemes) and a dominant design in which the merchants absorb the costs associated with payments. However, numerous digital payment solutions, which rely on new disruptive technologies, are emerging on the payment market, transforming the payment area from being established into a state of flux. In this article, we investigate the various factors that determine the success of a given solution. To this end, we build a framework to analyze the entry and expansion strategies of the digital payment solutions. We claim that the timing of entry of the first-mover speeds up the timing of entry of the early follower, thus determining the order of entry. We also argue that the timing of expansion is of equal importance as the timing of entry. If the expansion is not executed within the optimal time, the previously gained competitive advantage can be annulled.
AB - The payment market has been stable for a number of decades with well-defined roles (acquirers and issuers), profitable business models (the card schemes) and a dominant design in which the merchants absorb the costs associated with payments. However, numerous digital payment solutions, which rely on new disruptive technologies, are emerging on the payment market, transforming the payment area from being established into a state of flux. In this article, we investigate the various factors that determine the success of a given solution. To this end, we build a framework to analyze the entry and expansion strategies of the digital payment solutions. We claim that the timing of entry of the first-mover speeds up the timing of entry of the early follower, thus determining the order of entry. We also argue that the timing of expansion is of equal importance as the timing of entry. If the expansion is not executed within the optimal time, the previously gained competitive advantage can be annulled.
KW - Digital payment platforms
KW - Entry strategies
KW - Expansion strategies
KW - Financial services
KW - Lock-in effects
KW - Mobile payments
KW - Multi-sided platforms
KW - Network effects
KW - Technology strategy
UR - http://sfx-45cbs.hosted.exlibrisgroup.com/45cbs?url_ver=Z39.88-2004&url_ctx_fmt=info:ofi/fmt:kev:mtx:ctx&ctx_enc=info:ofi/enc:UTF-8&ctx_ver=Z39.88-2004&rfr_id=info:sid/sfxit.com:azlist&sfx.ignore_date_threshold=1&rft.object_id=111030117704000
U2 - 10.1016/j.elerap.2015.03.004
DO - 10.1016/j.elerap.2015.03.004
M3 - Journal article
VL - 14
SP - 319
EP - 330
JO - Electronic Commerce Research and Applications
JF - Electronic Commerce Research and Applications
SN - 1567-4223
IS - 5
M1 - 602
ER -