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Successful introduction of new payment methods through ‘co-opetition’
Journal of Payments Strategy & Systems,
7
(2),
136-149
(2013)
Abstract
Payment services constitute a two-sided market of payers (eg consumers) and payees (eg merchants). A new payment method needs to reach critical mass on both sides to become successful, which is not without difficulty. This paper analyses how this chicken-and-egg problem can be overcome through a combination of cooperation and competition between banks and other players involved in the payment chain. The emergence of e-payments provides insight into critical success factors and suggestions for successful introduction of new payment methods.
Keywords: e-payments; online banking; two-sided market; four-party model; scheme; critical mass
The full article is available to subscribers to the journal.
Author's Biography
Max Geerling is Executive Adviser, e-Payments at the Dutch Payments Association, an organisation for credit institutions (banks), payment institutions and electronic money institutions. He is also involved in the management of the iDEAL payment scheme. Max is a business expert in digital payments with a broad background in cards, online and mobile payments. He has prior experience in management positions and as a business consultant. He holds a PhD in computing science from the University of Nijmegen.
