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You can’t get there from here: The role of the installed base in payment system adoption

Author

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  • Leibbrandt, Gottfried

    (Author and Adviser, Belgium)

Abstract

The use of payment instruments varies across countries. These differences persist even after the arrival of new global payment technologies. Countries often implement these global technologies in different ways. The role of the installed base of prior payment systems is explored as an explanation. Because new payment technologies are subject to strong network effects, compatibility with existing systems greatly increases the attractiveness of new payment technologies.

Suggested Citation

  • Leibbrandt, Gottfried, 2010. "You can’t get there from here: The role of the installed base in payment system adoption," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 4(1), pages 6-16, March.
    • Handle: RePEc:aza:jpss00:y:2010:v:4:i:1:p:6-16
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    More about this item

    Keywords

    payment instruments; installed base; country differences; technology succession;
    All these keywords.

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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