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The microeconomics of mobile payments


  • Aloys Prinz

    () (University of Muenster)


In this paper, a Kranzberg [32] - Lancaster [34] approach is employed to investigate the microeconomics of mobile payment methods. The adoption of these technical innovations depends, among others, on the acceptance by consumers that can be analyzed with a Lancaster characteristics demand. With a Kranzberg technology matrix, the technical and institutional details of payments can be transformed into salient characteristics of payment instruments that are relevant for Lancaster demand of payment methods. While cash and card-based payments are mostly Kranzberg-complete technologies, novel forms and means of mobile payments lack certain features, i.e., they are Kranzberg-incomplete innovations. Mobile payments are incomplete concerning technical, institutional and regulatory details. As a consequence, this incompleteness may result in a lack of acceptance on the side of consumers since certain salient characteristics of payment methods are not fully developed. In particular, mobile payments are neither widely accepted by merchants, nor are consumers’ data and privacy protected. Kranzberg-completion of novel mobile payments is required to make them universally successful.

Suggested Citation

  • Aloys Prinz, 2019. "The microeconomics of mobile payments," Netnomics, Springer, vol. 20(2), pages 129-151, December.
  • Handle: RePEc:kap:netnom:v:20:y:2019:i:2:d:10.1007_s11066-019-09137-0
    DOI: 10.1007/s11066-019-09137-0

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    References listed on IDEAS

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    More about this item


    Payment methods and systems; Salient characteristics; Vector similarity; Kranzberg’s laws; Kranzberg-complete technology packages; Network externalities;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • D10 - Microeconomics - - Household Behavior - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes


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