A Model of Digital Payment Infrastructure Formation and Development: The EU Regulator´s Perspective

The payment field is being rapidly transformed. New players have emerged and are threatening the well-established positions of the incumbents. This process is driven by technology change and market forces, and it is shaped by the increasing role of the regulator. When considering the change in the regulatory environment and combining it with the disruptive and innovative nature of the mobile phone, the result is a market that is rapidly transforming from well-established structure into a state of flux. We build a model to understand and explain this transformation of the digital payment infrastructure. The model captures the formation and development of the digital payment infrastructure with a particular emphasis on the regulator´s and innovator’s perspective. It consists of four stages characterized by slow incremental change which are followed by short and rapid bursts of discontinuity. Each stage is portrayed by its evolutionary dynamics, the nature of the payment platform, the legal implications, the level of competition, and what drives the discontinuity. Keywords: digital payments, multi-sided platform, EU payment regulation, digital infrastructures

Introducing Platform Interactions Model for Studying Multi-Sided Platforms

Multi-Sided Platforms (MSPs) function as socio-technical entities that facilitate direct interactions between various affiliated to them constituencies through developing and managing IT architecture. In this paper, we aim to explain the nature of the platform interactions as key characteristic of any MSP. To this end, we propose the Platform Interaction Model (PIM), built upon Activity Theory and Business Action Theory. We then test its explanatory capability by applying it to four cases. Based on our analysis, we argue that MSPs enable various types of interactions, which has implications for the initial adoption, competitiveness, and subsequent expansion of particular MSP

Introducing Reach And Range For Digital Payment Platforms

Numerous digital payment solutions, which rely on new disruptive technologies, have been launched on the payment market in the recent years. But despite the growing number of mobile payment apps, very few solutions turn to be successful as the majority of them fail to gain a critical mass of users. In this paper we investigate two successful digital payment solutions in order to outline some of the factors which contribute to the widespread adoption of a digital payment platform. In order to conduct our analysis we propose the Reach and Range Framework for Multi-Sided Platforms. Our study indicates that the success of digital payment platforms lies with the ability of the platform to balance the reach (number of participants) and the range (features and functionalities) of the platform

PLATFORM CONSTELLATIONS: THE CASE OF KAKAOTALK AND LINE

This research paper presents an initial attempt to introduce and explain the emergence of new phenomenon, which we refer to as platform constellations. Functioning as highly modular systems, the platform constellations are collections of highly connected platforms which co-exist in parallel and as such allow us to study platforms not only as separate entities, but also to investigate the relationship between several platforms offered and governed by one and the same platform provider. By investigating two case studies of indigenous platform constellations formed around the hugely popular instant messaging apps KakaoTalk and LINE, we are able to gain valuable insights about the nature of these new constructions and to capture and synthesize their main characteristics in a framework. Our results show that platform constellations possess unique innovative capabilities, which can improve users’ acquisition and users’ engagement rates as well as unlock new sources of value creation and diversify revenue streams

DECOUPLING ACCOUNTABILITY AND LIABILITY:CASE STUDY ON THE INTERIM MEASURES FOR THE OPENING OF PUBLIC DATA IN SHANGHAI

As open public data initiatives have become prevalent among local and national governments across the globe with promises of benefits such as increased accountability, challenges, especially the governments’ lack of willingness to open public data, have also begun to emerge. Existing governance research on open public data primarily focuses on how open public data can increase the accountability of public bodies. The important steps in achieving accountability are, however, ignored. In this paper, we view the perceived risk of liability as a barrier for the public bodies to disclose their data in the first place, and hence to achieve accountability as a desired outcome. We explore the link between perceived risk of liability and accountability by looking into the recently announced Interim Measures for the Opening of Public Data in Shanghai as an example of a local regulatory initiative of open public data. Our findings show that by identifying the specific data entities and outlining their corresponding duties, the interim measures clarify the roles of different public bodies and under what conditions they can incur liability. By introducing an exemption clause, they also provide public bodies with legal flexibility to cope with uncertain consequences of data utilization. In this way, we argue that the interim measures, outlining duties for specific entities in data opening in accounting for the consequences of data utilization while remaining flexible due to their temporality, constitute a novel regulatory approach towards reducing the legal uncertainty around perceived risks of liability in the area of open public data, hence potentially contributing to increased accountability

A Typology of Multi-sided Platforms: The Core and the Periphery

In this paper we address how the composition of a platform impacts the platform’s business model. By platform’s business model we mean platform features, platform architecture and platform governance. To this end, we construct the Platform Business Model Framework. We apply the framework to three exemplary cases which allow us to illustrate the platform heterogeneity and to support new MSPs typology. As examples we include a physical two-sided platform (Gatwick Airport) that adds a third side, a digital one-sided platform transformed into being two-sided (Pingit) and a digital one-sided platform which evolved several steps into being multi-sided (Facebook). Our analysis shows a structural difference between one-sided, two-sided and multi-sided platforms and that platforms consist of a core and potentially also a periphery. The sides of a platform and the ties which connect them can be arranged in several configurations. The particular platform architecture can explain the difficulties in designing a viable business models for platforms

Digital Tactics: Resolving Emerging Sociotechnical Tensions in the Digital Worksplace

Knowledge professionals are increasingly facing various tensions in their digital workplace brought by emerging lightweight IT and existent heavyweight IT and the processes and practices they support and enable. In this paper, we uncover five digital tactics, which knowledge professionals utilize daily to resolve these tensions when carrying out and ameliorating their productivity and well-being at work. While existent IS-research recognizes these socio-technical tensions as an IS-strategic phenomenon that managers resolve by deploying various strategic responses, we illuminate how digital tactics on individual, employee level is an equally important element in resolving these tensions and reaching strategic goals during digital transformation. Based on data from group interviews with 22 knowledge professionals, we abstracted five different digital tactics of improvisation, accountability, maneuvering, fostering a both/and culture and acceleration, that employees adopt to resolve tensions. Going forward, we suggest broadening our understanding of the socio-technical realm with the concept of digital tactics

Decoupling Accountability and Liability

As open public data initiatives have become prevalent among local and national governments across the globe with promises of benefits such as increased accountability, challenges, especially the governments’ lack of willingness to open public data, have also begun to emerge. Existing governance research on open public data primarily focuses on how open public data can increase the accountability of public bodies. The important steps in achieving accountability are, however, ignored. In this paper, we view the perceived risk of liability as a barrier for the public bodies to disclose their data in the first place, and hence to achieve accountability as a desired outcome. We explore the link between perceived risk of liability and accountability by looking into the recently announced Interim Measures for the Opening of Public Data in Shanghai as an example of a local regulatory initiative of open public data. Our findings show that by identifying the specific data entities and outlining their corresponding duties, the interim measures clarify the roles of different public bodies and under what conditions they can incur liability. By introducing an exemption clause, they also provide public bodies with legal flexibility to cope with uncertain consequences of data utilization. In this way, we argue that the interim measures, outlining duties for specific entities in data opening in accounting for the consequences of data utilization while remaining flexible due to their temporality, constitute a novel regulatory approach towards reducing the legal uncertainty around perceived risks of liability in the area of open public data, hence potentially contributing to increased accountability

Generative Mechanisms for Digital Platform Ecosystem Evolution

Despite their growing economic importance and rapid proliferation across various industries, successful digital platform ecosystems remain difficult to build and sustain over time. Facing challenges stemming from the turbulent and uncertain environment, in which they operate, and from the accumulated over time internal inefficiencies, digital platform ecosystems need to evolve and adapt rapidly. Despite the importance of understanding how and why this evolutionary process occurs, research on this topic has remained elusive. Building upon the notion of generative mechanisms, this PhD dissertation seeks to unravel the various mechanisms, which contingently shape the evolution of digital platform ecosystems. To this end, this research investigates the evolutionary process from three theoretical perspectives – Punctuated Equilibrium, Dialectical and Teleological, and by adopting multi-method approach. As a result, the PhD dissertation puts forward three process theories, each characterized by distinctive generative mechanisms, which collectively provide in-depth insights how digital platform ecosystems evolve over time in response to internal and external challenges

The EU Regulator´s Perspective

The Single Euro Payments Area (SEPA) is probably the most ambitious self-regulatory project aimed at creating a single integrated European digital payments market since the introduction of the Euro. SEPA aims to make EU more innovative and competitive. When considering the SEPA initiative and combining it with the disruptive and innovative nature the mobile phone permeates, the result is a market that is rapidly transforming from well-established into a state of flux. We build a model to understand and explain this transformation of the digital payment infrastructure. The model captures the formation and development of digital payment infrastructure with a particular emphasis on the regulator´s perspective. It consists of four stages characterized by slow incremental change following by short rapid bursts of discontinuity. Each stage is portrayed by its evolutionary dynamics, the nature of the payment platform, the legal implications, the regulatory asymmetry, the level of competition, and what drives the discontinuity