Home > Research > Publications & Outputs > Analysis of electronic micro-payment market

Electronic data

View graph of relations

Analysis of electronic micro-payment market

Research output: Working paper

Published

Standard

Analysis of electronic micro-payment market. / See-To, E W K; Jaisingh, J; Tam, K Y.

Lancaster University : The Department of Management Science, 2006. (Management Science Working Paper Series).

Research output: Working paper

Harvard

See-To, EWK, Jaisingh, J & Tam, KY 2006 'Analysis of electronic micro-payment market' Management Science Working Paper Series, The Department of Management Science, Lancaster University.

APA

See-To, E. W. K., Jaisingh, J., & Tam, K. Y. (2006). Analysis of electronic micro-payment market. (Management Science Working Paper Series). The Department of Management Science.

Vancouver

See-To EWK, Jaisingh J, Tam KY. Analysis of electronic micro-payment market. Lancaster University: The Department of Management Science. 2006. (Management Science Working Paper Series).

Author

See-To, E W K ; Jaisingh, J ; Tam, K Y. / Analysis of electronic micro-payment market. Lancaster University : The Department of Management Science, 2006. (Management Science Working Paper Series).

Bibtex

@techreport{170fcbfdf935413793517a5bfd920aa3,
title = "Analysis of electronic micro-payment market",
abstract = "Despite the potential of micro-payment systems very few systems have been successful. Little is known about the reasons behind the successful few and the failures of the majority. Micro-payment markets exhibit two-sided network externalities and the underlying dynamics of these markets are not very well understood. Based on a stylized model of two-sided market, we find that there is a 'survival mass' of merchants and users for a micro-payment system to exist and a 'critical mass' for the acceptance levels to take off and remain stable. We also find the non-intuitive result that lowering the user-side adoption cost will actually reduce the chances for the micro-payment market to develop. Subsidization alone cannot create a micro-payment market. Anecdotal evidence supports this finding. When subsidization is needed, the user side will normally be subsidized. The two-sided market structure makes comparative analysis complex and non-trivial, rendering the implementation of micro-payment systems very difficult as indicated by the mixed results of a number of initiatives worldwide.",
keywords = "network externalities, two-sided market, micro-payment systems, smart card technology, electronic cash, game theory",
author = "See-To, {E W K} and J Jaisingh and Tam, {K Y}",
year = "2006",
language = "English",
series = "Management Science Working Paper Series",
publisher = "The Department of Management Science",
type = "WorkingPaper",
institution = "The Department of Management Science",

}

RIS

TY - UNPB

T1 - Analysis of electronic micro-payment market

AU - See-To, E W K

AU - Jaisingh, J

AU - Tam, K Y

PY - 2006

Y1 - 2006

N2 - Despite the potential of micro-payment systems very few systems have been successful. Little is known about the reasons behind the successful few and the failures of the majority. Micro-payment markets exhibit two-sided network externalities and the underlying dynamics of these markets are not very well understood. Based on a stylized model of two-sided market, we find that there is a 'survival mass' of merchants and users for a micro-payment system to exist and a 'critical mass' for the acceptance levels to take off and remain stable. We also find the non-intuitive result that lowering the user-side adoption cost will actually reduce the chances for the micro-payment market to develop. Subsidization alone cannot create a micro-payment market. Anecdotal evidence supports this finding. When subsidization is needed, the user side will normally be subsidized. The two-sided market structure makes comparative analysis complex and non-trivial, rendering the implementation of micro-payment systems very difficult as indicated by the mixed results of a number of initiatives worldwide.

AB - Despite the potential of micro-payment systems very few systems have been successful. Little is known about the reasons behind the successful few and the failures of the majority. Micro-payment markets exhibit two-sided network externalities and the underlying dynamics of these markets are not very well understood. Based on a stylized model of two-sided market, we find that there is a 'survival mass' of merchants and users for a micro-payment system to exist and a 'critical mass' for the acceptance levels to take off and remain stable. We also find the non-intuitive result that lowering the user-side adoption cost will actually reduce the chances for the micro-payment market to develop. Subsidization alone cannot create a micro-payment market. Anecdotal evidence supports this finding. When subsidization is needed, the user side will normally be subsidized. The two-sided market structure makes comparative analysis complex and non-trivial, rendering the implementation of micro-payment systems very difficult as indicated by the mixed results of a number of initiatives worldwide.

KW - network externalities

KW - two-sided market

KW - micro-payment systems

KW - smart card technology

KW - electronic cash

KW - game theory

M3 - Working paper

T3 - Management Science Working Paper Series

BT - Analysis of electronic micro-payment market

PB - The Department of Management Science

CY - Lancaster University

ER -