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Mobile Payments and Interoperability: Insights from the Academic Literature

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  • Bianchi, Milo
  • Bouvard, Matthieu
  • Gomes, Renato
  • Rhodes, Andrew
  • Shreeti, Vatsala

Abstract

We connect various streams of academic literature to shed light on how the degree of interoperability in mobile payments affects market outcomes and welfare. We organize our discussion around four dimensions of interoperability. First, we consider mobile network interoperability (whether clients of one telecom can access another telecom’s payment services) in connection with the IO literature on tying. Second, we discuss platform level interoperability (the ability to send money offnetwork) in light of the literature on compatibility. We also build on the behavioral IO literature to suggest how the effects of interoperability may be very heterogeneous across various types of firms and consumers, or even backfire. Third, we consider interoperability in the cash-in-cash-out agent network, in light of the literature on co-investment in network industries, and of more specific studies on ATMs’ interoperability. Fourth, we discuss how the literature in banking and on data ownership can be used to understand interoperability of data. We conclude with some broader remarks on policy implications and on possible directions for future research.

Suggested Citation

  • Bianchi, Milo & Bouvard, Matthieu & Gomes, Renato & Rhodes, Andrew & Shreeti, Vatsala, 2021. "Mobile Payments and Interoperability: Insights from the Academic Literature," TSE Working Papers 21-1279, Toulouse School of Economics (TSE), revised Nov 2023.
    • Handle: RePEc:tse:wpaper:126276
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    Cited by:

    1. Limodio, Nicola & Brunnermeier, Markus & Spadavecchia, Lorenzo, 2023. "Mobile Money, Interoperability and Financial Inclusion," CEPR Discussion Papers 18124, C.E.P.R. Discussion Papers.
    2. Rhodes, Andrew, 2023. "A Survey on Drip Pricing and Other False Advertising," TSE Working Papers 23-1434, Toulouse School of Economics (TSE).

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    More about this item

    Keywords

    Mobile Payments; Interoperability; Financial Inclusion; Competition; Policy.;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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