Mobile payment models and their implications for NextGen MSPs

Abstract

Purpose

This paper aims to provide a first overview of important implications of payment models for next‐generation mobile service platforms (NextGen MSPs).

Design/methodology/approach

The starting point of the paper is an existing set of mobile payment models. These models are modified and expanded on in order to be able to highlight implications for NextGen MSPs.

Findings

The paper identifies two different types of payment models for mobile environments: carrier centric models and payment service provider (PSP)‐centric models. Instantiations of both categories are already being applied, although not necessarily always in the mobile environment. Both types come with a number of advantages as well as disadvantages. This paper argues that combining different models or introducing intermediaries yields solutions that satisfy the requirements of NextGen MSPs for offering a compelling value proposition to their users.

Originality/value

This paper is the first to analyse the suitability of existing mobile payment models in the specific context of NextGen MSPs. It also proposes alternative models that provide a better fit with the potential business models for such platforms.

Citation

Van Bossuyt, M. and Van Hove, L. (2007), "Mobile payment models and their implications for NextGen MSPs", info, Vol. 9 No. 5, pp. 31-43. https://doi.org/10.1108/14636690710816435