Towards A Framework of Digital Payment Platform Design

A Comparative Study of Four European Solutions

Erol Kazan, Jan Damsgaard

    Research output: Working paperResearch

    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
    Place of PublicationFrederiksberg
    PublisherDepartment of IT Management. CBS
    Number of pages15
    ISBN (Print)9788792524188
    Publication statusPublished - 2013
    SeriesITM Communications
    Number2013/2

    Cite this

    Kazan, E., & Damsgaard, J. (2013). Towards A Framework of Digital Payment Platform Design: A Comparative Study of Four European Solutions. Frederiksberg: Department of IT Management. CBS. ITM Communications, No. 2013/2
    Kazan, Erol ; Damsgaard, Jan. / Towards A Framework of Digital Payment Platform Design : A Comparative Study of Four European Solutions. Frederiksberg : Department of IT Management. CBS, 2013. (ITM Communications; No. 2013/2).
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    Towards A Framework of Digital Payment Platform Design : A Comparative Study of Four European Solutions. / Kazan, Erol; Damsgaard, Jan.

    Frederiksberg : Department of IT Management. CBS, 2013.

    Research output: Working paperResearch

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    T2 - A Comparative Study of Four European Solutions

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    AU - Damsgaard, Jan

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    N2 - 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.

    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

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    KW - Payment systems

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