Erol Kazan

Disentangling Digital Platform Competition: The Case of UK Mobile Payment Platforms

Abstract Digital platforms confer competitive advantage through superior architectural configurations. There is, however, still a dearth of research that sheds light on the competitive attributes that define platform competition from an architectural standpoint. To disentangle platform competition, we opted for the mobile payment market in the United Kingdom as our empirical setting. By conceptualizing digital platforms as layered modular architectures and embracing the theoretical lens of strategic groups, this study supplements prior research by deriving a taxonomy of platform profiles that is grounded on the strategic dimensions of value creation and value delivery architectures. We discover that mobile payment platforms could be delineated based on: (1) whether they are integrative or integratable on their value creation architecture; and (2) whether they have direct, indirect, or open access on their value delivery architecture. The preceding attributes of value creation architecture and value delivery architecture aided us in identifying six profiles associated with mobile payment platforms, which in turn led us to advance three competitive strategies that could be pursued by digital platforms in network economies.

Towards a Market Entry Framework for Digital Payment Platforms

This study presents a framework to understand and explain the design and configuration of digital payment platforms and how these platforms create conditions for market entries. By embracing the theoretical lens of platform envelopment, we employed a multiple and comparative-case study in a European setting by using our framework as an analytical lens to assess market-entry conditions. We found that digital payment platforms have acquired market entry capabilities, which is achieved through strategic platform design (i.e., platform development and service distribution) and technology design (i.e., issuing evolutionary and revolutionary payment instruments). The studied cases reveal that digital platforms leverage payment services as a mean to bridge and converge core and adjacent platform markets. In so doing, platform envelopment strengthens firms’ market position in their respective core markets. This study contributes to the extant literature on digital platforms, market entries, and payment.

Towards a framework of digital platform competition: a comparative study of monopolistic & federated mobile payment platforms

This paper advances a framework for examining the competitive principles of mobile payment platforms. We postulate that the strategic interplay of platform layers will drive the competitive dynamics of platform-driven ubiquitous systems. This framework has been employed in a comparative case study between monopolistic (i.e., Pingit) and federated (i.e., Paym) mobile payment platforms to illustrate its applicability and yield principles on the nature and impact of competition among platform-driven ubiquitous systems. Preliminary findings indicate that monopolistic mobile digital platforms attempt to create unique configurals to obtain monopolistic power by tightly coupling platform layers, which are difficult to replicate. Conversely, federated digital platforms compete by dispersing the service layer to harness the collective resources from individual firms. Furthermore, the interaction and integration among platform layers give rise to commodity and value platform layers that translate into competitive battlegrounds among mobile payment services. This paper therefore represents a concrete step in unraveling the competitive dynamics of platform-driven ubiquitous systems from an architectural viewpoint.