Mobile Payments and Interoperability: Insights from the Academic Literature

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.

Keywords

JEL codes

Replaced by

Milo Bianchi, Matthieu Bouvard, Renato Gomes, Andrew Rhodes, and Vatsala Shreeti, “Mobile payments and interoperability: Insights from the academic literature”, Information Economics and Policy, vol. 65, n. 101068, December 2023.

Reference

Milo Bianchi, Matthieu Bouvard, Renato Gomes, Andrew Rhodes, and Vatsala Shreeti, “Mobile Payments and Interoperability: Insights from the Academic Literature”, TSE Working Paper, n. 21-1279, December 2021, revised November 2023.