IDEAS home Printed from https://ideas.repec.org/a/spr/futbus/v9y2023i1d10.1186_s43093-023-00272-7.html
   My bibliography  Save this article

Determinants of success of mobile payments as innovations: An exploratory study based on the extant literature, the M-Pesa, Alipay, and Nubank cases, and the opinion of experts

Author

Listed:
  • Carlos Tadao Kawamoto

    (University of São Paulo)

  • Renata Giovinazzo Spers

    (University of São Paulo)

  • André Leme Fleury

    (University of São Paulo)

  • Paulo Roberto Feldmann

    (University of São Paulo)

  • Nelson Daishiro Yoshida

    (University of São Paulo)

Abstract

An important fact related to mobile payments is that adopters have already reached the majority group in more than 40 countries. Despite the growth of mobile payments, only a small portion of the related literature has focused on the topic from an organizational point of view. To fill this gap, this paper seeks to identify the main success determinants of firms operating in the segment, looking for relevant characteristics of organizations that are successful in this competitive arena. The investigation carried out a triangulation with the results of a literature review, a case study, and the answers given by a questionnaire applied to a group of specialists from private organizations and the public sector. The results suggest that companies with organic and flexible structures, open communication qualities, and decentralized decision processes increase their chances of success. Furthermore, the results also show that, given non-impeditive regulations, critical mass and the provision of different services other than the payment choice should be considered by firms operating in the mobile payment segment. Graphical Abstract

Suggested Citation

  • Carlos Tadao Kawamoto & Renata Giovinazzo Spers & André Leme Fleury & Paulo Roberto Feldmann & Nelson Daishiro Yoshida, 2023. "Determinants of success of mobile payments as innovations: An exploratory study based on the extant literature, the M-Pesa, Alipay, and Nubank cases, and the opinion of experts," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.
    • Handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00272-7
    DOI: 10.1186/s43093-023-00272-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s43093-023-00272-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1186/s43093-023-00272-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Morten L. Bech & Bart Hobijn, 2007. "Technology Diffusion within Central Banking: The Case of Real-Time Gross Settlement," International Journal of Central Banking, International Journal of Central Banking, vol. 3(3), pages 147-181, September.
    2. Jay Pil Choi, 2010. "Tying In Two‐Sided Markets With Multi‐Homing," Journal of Industrial Economics, Wiley Blackwell, vol. 58(3), pages 607-626, September.
    3. Jean-Charles Rochet & Jean Tirole, 2003. "Platform Competition in Two-Sided Markets," Journal of the European Economic Association, MIT Press, vol. 1(4), pages 990-1029, June.
    4. Jean-Charles Rochet & Jean Tirole, 2002. "Cooperation Among Competitors: Some Economics Of Payment Card Associations," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 549-570, Winter.
    5. Jeffrey Rohlfs, 1974. "A Theory of Interdependent Demand for a Communications Service," Bell Journal of Economics, The RAND Corporation, vol. 5(1), pages 16-37, Spring.
    6. Philippe Aghion & Nick Bloom & Richard Blundell & Rachel Griffith & Peter Howitt, 2005. "Competition and Innovation: an Inverted-U Relationship," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 701-728.
    7. Katz, Michael L & Shapiro, Carl, 1985. "Network Externalities, Competition, and Compatibility," American Economic Review, American Economic Association, vol. 75(3), pages 424-440, June.
    8. Maxwell, John W., 1998. "Minimum quality standards as a barrier to innovation," Economics Letters, Elsevier, vol. 58(3), pages 355-360, March.
    9. Kim, Linsu, 1980. "Organizational innovation and structure," Journal of Business Research, Elsevier, vol. 8(2), pages 225-245, June.
    10. Gerard J. Tellis & Stefan Stremersch & Eden Yin, 2003. "The International Takeoff of New Products: The Role of Economics, Culture, and Country Innovativeness," Marketing Science, INFORMS, vol. 22(2), pages 188-208, October.
    11. Yong Liu & Meng Wang & Danyu Huang & Qiang Huang & Hua Yang & Zhigang Li, 2019. "The impact of mobility, risk, and cost on the users’ intention to adopt mobile payments," Information Systems and e-Business Management, Springer, vol. 17(2), pages 319-342, December.
    12. Dennis W. Carlton & Michael Waldman, 2002. "The Strategic Use of Tying to Preserve and Create Market Power in Evolving Industries," RAND Journal of Economics, The RAND Corporation, vol. 33(2), pages 194-220, Summer.
    13. repec:eme:mrn000:01409170610683833 is not listed on IDEAS
    14. Utterback, James M. & Suarez, Fernando F., 1993. "Innovation, competition, and industry structure," Research Policy, Elsevier, vol. 22(1), pages 1-21, February.
    15. Brian Mantel, 2000. "Why do consumers pay bills electronically? an empirical analysis," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 25(Q IV), pages 32-48.
    16. Abeer F. Alkhwaldi & Esraa Esam Alharasis & Maha Shehadeh & Ibrahim A. Abu-AlSondos & Mohammad Salem Oudat & Anas Ahmad Bani Atta, 2022. "Towards an Understanding of FinTech Users’ Adoption: Intention and e-Loyalty Post-COVID-19 from a Developing Country Perspective," Sustainability, MDPI, vol. 14(19), pages 1-23, October.
    17. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    18. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    19. Nicole Koenig-Lewis & Morgan Marquet & Adrian Palmer & Anita Lifen Zhao, 2015. "Enjoyment and social influence: predicting mobile payment adoption," The Service Industries Journal, Taylor & Francis Journals, vol. 35(10), pages 537-554, July.
    20. Rajibul Hasan & Yinggang Liu & Philip Kitchen & Mizan Rahman, 2019. "Exploring consumer mobile payment adoption in the bottom‐of‐the‐pyramid context: A qualitative study," Post-Print hal-02329187, HAL.
    21. Evans David S. & Schmalensee Richard, 2010. "Failure to Launch: Critical Mass in Platform Businesses," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-28, December.
    22. Herbert L. Baer & Christine A. Pavel, 1988. "Does regulation drive innovation?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 12(Mar), pages 3-15.
    23. Raphael Auer & Giulio Cornelli & Jon Frost, 2020. "Covid-19, cash, and the future of payments," BIS Bulletins 3, Bank for International Settlements.
    24. Jaffar Abbas & Qingyu Zhang & Iftikhar Hussain & Sabahat Akram & Aneeqa Afaq & Muhammad Afzal Shad, 2020. "Sustainable Innovation in Small Medium Enterprises: The Impact of Knowledge Management on Organizational Innovation through a Mediation Analysis by Using SEM Approach," Sustainability, MDPI, vol. 12(6), pages 1-19, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bruno Jullien & Alessandro Pavan & Marc Rysman, 2021. "Two-sided markets, pricing, and network effects," Post-Print hal-03828345, HAL.
    2. Gastón Llanes & Andrea Mantovani & Francisco Ruiz-Aliseda, 2019. "Entry into Complementary Good Markets with Network Effects," Strategy Science, INFORMS, vol. 4(4), pages 262-282, December.
    3. Marc Rysman, 2007. "An Empirical Analysis Of Payment Card Usage," Journal of Industrial Economics, Wiley Blackwell, vol. 55(1), pages 1-36, March.
    4. Hagiu, Andrei & Hałaburda, Hanna, 2014. "Information and two-sided platform profits," International Journal of Industrial Organization, Elsevier, vol. 34(C), pages 25-35.
    5. Basaure, Arturo & Vesselkov, Alexandr & Töyli, Juuso, 2020. "Internet of things (IoT) platform competition: Consumer switching versus provider multihoming," Technovation, Elsevier, vol. 90.
    6. Grajek, Michał & Kretschmer, Tobias, 2012. "Identifying critical mass in the global cellular telephony market," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 496-507.
    7. Yang Geng & Yulin Zhang & Jing Li, 2023. "Two-sided competition, platform services and online shopping market structure," Journal of Economics, Springer, vol. 138(2), pages 95-127, March.
    8. Geng, Yang & Zhang, Yulin, 2020. "Platform launch in two-sided markets and users’ expectations," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 558(C).
    9. Jean-Charles Rochet, 2007. "Some economics of horizontal integration in the payments industry," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City.
    10. Justus Haucap & Ulrich Heimeshoff, 2014. "Google, Facebook, Amazon, eBay: Is the Internet driving competition or market monopolization?," International Economics and Economic Policy, Springer, vol. 11(1), pages 49-61, February.
    11. Carrillo, Juan D. & Tan, Guofu, 2021. "Platform competition with complementary products," International Journal of Industrial Organization, Elsevier, vol. 77(C).
    12. Ding, Rong & Ko, Chiu Yu & Shen, Bo, 2022. "Partial compatibility in two-sided markets: Equilibrium and welfare analysis," Economic Modelling, Elsevier, vol. 116(C).
    13. Zeng, Jing & Khan, Zaheer & De Silva, Muthu, 2019. "The emergence of multi-sided platform MNEs: Internalization theory and networks," International Business Review, Elsevier, vol. 28(6), pages 1-1.
    14. Papachristos, George, 2017. "Diversity in technology competition: The link between platforms and sociotechnical transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 291-306.
    15. Jørgen Veisdal, 2020. "The dynamics of entry for digital platforms in two-sided markets: a multi-case study," Electronic Markets, Springer;IIM University of St. Gallen, vol. 30(3), pages 539-556, September.
    16. de Reuver, Mark & Ondrus, Jan, 2017. "When technological superiority is not enough: The struggle to impose the SIM card as the NFC Secure Element for mobile payment platforms," Telecommunications Policy, Elsevier, vol. 41(4), pages 253-262.
    17. Mohammed Mardan & Mark J. Tremblay, 2022. "Network Effects: Betwixt and Between," CESifo Working Paper Series 10082, CESifo.
    18. Verdier, Marianne, 2006. "Retail Payment Systems: What can we Learn from Two-Sided Markets?," MPRA Paper 2606, University Library of Munich, Germany.
    19. Belleflamme,Paul & Peitz,Martin, 2015. "Industrial Organization," Cambridge Books, Cambridge University Press, number 9781107687899, July.
    20. Volker Nocke & Martin Peitz & Konrad Stahl, 2007. "Platform Ownership," Journal of the European Economic Association, MIT Press, vol. 5(6), pages 1130-1160, December.

    More about this item

    Keywords

    Mobile payment; Innovation; Payment instrument; Financial intermediation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00272-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.