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Article
Publication date: 22 May 2020

Xueli Zhang and Defeng Yang

The purpose of this paper is to investigate the conditions under which working with an incumbent downstream competitor could be a beneficial strategy for upstream firms as the…

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Abstract

Purpose

The purpose of this paper is to investigate the conditions under which working with an incumbent downstream competitor could be a beneficial strategy for upstream firms as the case of the relationship between banks and third-party payment providers.

Design/methodology/approach

Using a game model, this study considers a market with two upstream firms (banks) and two downstream firms (third-party payment providers). One downstream firm is an incumbent that poses a competitive threat to the upstream market, and the other downstream firm does not.

Findings

The results show that the optimal decision for banks depends on the number of loyal users the incumbent third-party payment providers and banks have. When the bank has more loyal users than the competitive third-party provider to a certain level, it would terminate cooperation with the provider; otherwise, the bank would maintain cooperation. This is true whether the duopoly banks are symmetrical or asymmetrical.

Originality/value

This study makes contribution to the theory of co-opetition lies in the fact that it examines a special case of competition and cooperation between vertical enterprises in the bank context. This study investigates how the upstream firms do when threatened by a downstream firm while the upstream firms have other options. This study also contributes to bank marketing theory through providing explanations for some of the incomprehensible cooperation in China's payment market, which is characterized by consumer loyalty. This study extends previous new-entry competition for banks by differentiating between incumbent and new-entry downstream firms.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJBM-11-2019-0414

Details

International Journal of Bank Marketing, vol. 38 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 8 August 2016

Jie Guo and Harry Bouwman

To understand why the penetration of handset-based mobile payment in most countries is still low has been an important research topic for the last 15 years, and it has been…

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Abstract

Purpose

To understand why the penetration of handset-based mobile payment in most countries is still low has been an important research topic for the last 15 years, and it has been analyzed from different perspectives. However, the analysis of a single aspect cannot provide a sophisticated answer to the complicated underlying question. The purpose of this paper is to understand how a relatively successful m-payment ecosystem is created and sustained through the coopetition of various actors.

Design/methodology/approach

To that end, the authors analyze the case of Alipay wallet, the m-payment service provider with the largest market share in China, and focus on understanding the motivations and subsequent actions of the organizations cooperating in the Alipay wallet core ecosystem.

Findings

The results show that actors with heterogeneous and complementary resources can forge sustainable collaboration. Within an ecosystem, although always constrained by resources and capabilities, the actions that the core actors take and the resulting power imbalances are dynamically changing, reflecting actors’ aim of reducing uncertainty.

Research limitations/implications

The main limitation of this case is that it was conducted in a Chinese context, which has specific features that may not apply to other cases. In addition, this study is based on a single case study in a single country, without comparing the results to any other cases or countries. Therefore, some modifications may have to be made when applying the framework and generalizing the results.

Practical implications

With regards to the practical perspective, the Alipay case may serve as an example that other providers follow, taking similar actions to increase the dependency of others and reduce their own dependency on others. It is helpful to take a keystone strategy to create value within the ecosystem and share this value with other participants. Moreover, Alipay acts as the platform provider, in addition to managing value creation within the ecosystem and sharing that value with the other participants. Alipay focuses on the business and strategic needs of the core actors, without threatening their main business, for example, Alipay focuses on micro-payments, which does not pose a direct competition to banks, who mainly rely on macro-payments to generate profit. Micro-payments are often related to high transaction costs for banks. In addition, although it is difficult to define the boundaries of actors in the ecosystem, the core business of every actor is the key competitive or even survival condition. This notion should be taken into consideration by actors whose actions affect the business of other ecosystem partners. For instance, Alipay will not aim to become a bank, as they know that if they do so, they cannot connect any other bank to their platform. In other words, the scope and boundary of the actors are clearly identified so that the core business will not be threatened. Sords, we can learn from Alipay that it pays off to focus on one area, and not to let your competitors challenge you.

Originality/value

The authors proposed the StReS framework for analyzing a business ecosystem by combining resource-based review, resource dependency theories and network analysis for investigating the motivations of the organizations cooperating in the core ecosystem and the actions they have taken to reduce dependency and uncertainty.

Book part
Publication date: 4 October 2018

Agrata Gupta and Chun Xia

The chapter studies the role of Financial Technology (FinTech) in disrupting the existing traditional banking system. It identifies FinTech’s evolution in Asia across Deposits &…

Abstract

The chapter studies the role of Financial Technology (FinTech) in disrupting the existing traditional banking system. It identifies FinTech’s evolution in Asia across Deposits & lending, Capital Raising, Investment Management, Market provisioning, Payments, and Insurance. This technology revolution allows us to have a banking system based on values that serve customers better, reduce risk to the society and improve returns for the shareholders. Data on unbanked population, smartphone penetration, and Internet penetration has led to retail side innovations such as Mobile Wallets, P2P Payments, and Real-time Payments in the most of Asia (except China). A total of 49% of Global Investments in FinTech are in Asia and the Chinese dragon alone accounts for 46%. India is witnessing a strong amount of FinTech deals in 2017 and it is being driven by payment and lending solutions. ASEAN FinTech industry is dominated by m-wallets and online payments; this is followed by retail investment and financial comparison. The chapter dives into the challenges Asian banks are facing because of this disruption. Now more than ever, is the important role governments and central banks of each nation play to assess the path these start-ups are headed on and this will unfold the landscape of banking in Asia a few years down the lane.

Details

Banking and Finance Issues in Emerging Markets
Type: Book
ISBN: 978-1-78756-453-4

Keywords

Article
Publication date: 11 August 2021

Ming-Hsiung Hsiao

Mobile payment (MP), near field communication-based particularly, has become one of the future payment tools. This study aims to indicate the difference between consumer users and…

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Abstract

Purpose

Mobile payment (MP), near field communication-based particularly, has become one of the future payment tools. This study aims to indicate the difference between consumer users and non-users by examining the effect of MP users’ perceived value on their satisfaction and on MP non-users behavioural intention. Once those MP users’ have achieved satisfaction, the study then investig ates how consumers bring about the need recognition and are more desirable to buy more products.

Design/methodology/approach

This study develops a research model, which examines the effect of consumer perceived value, including utilitarian value, technicality and perceived risk, on MP users’ satisfaction and MP non-users behavioural intention. In methodology, it adopts structural equation modelling to verify the proposed research model for empirical studies. The data set consists of 161 MP users and 277 non-users of consumers.

Findings

The findings show that consumers, both MP users and non-users included, are encouraged to improve utilitarian value if they are favourable to adopt MP services. Relatively, female users emphasize more on perceived risk, whilst male users emphasize more on technicality. Moreover, MP non-users and female users still have much concern about perceived risk such that they are inclined to avoid adopting MP services.

Originality/value

Past research has examined the adoption of MP services from the perspective of consumers with a focus on the perceived value, satisfaction and behavioural intention. However, only limited research examined the post-purchase evaluation of MP users. The study fills this gap by clarifying the difference between consumer users and non-users in the effect of MP users’ perceived value on their satisfaction and on their non-users behavioural intention.

Details

Journal of Modelling in Management, vol. 17 no. 4
Type: Research Article
ISSN: 1746-5664

Keywords

Open Access
Article
Publication date: 24 September 2021

Alice Siqi Han

This paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.

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Abstract

Purpose

This paper outlines the rapid rise of China's fintech companies over the past decade with a focus on their globalization strategies as they enter their next phase of development.

Design/methodology/approach

The author examines China's current and prospective influence on global financial digitization trends, and assesses both domestic and foreign opportunities and challenges confronted by China's fintech firms as they look to expand abroad.

Findings

The Chinese government is experimenting with a radically new fintech system and a regulatory regime in response to it. Chinese ambitions to expand fintech influence through private companies and the state-led “digital RMB” (e-CNY) will likely provoke a wave of “digital protectionism” among developed nations to protect internal digital payments.

Originality/value

This paper is an original economic history research on China's fintech industry.

Details

Journal of Internet and Digital Economics, vol. 1 no. 1
Type: Research Article
ISSN: 2752-6356

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Article
Publication date: 7 January 2019

Angela S.M. Irwin and Caitlin Dawson

The purpose of this paper is to show how global regulation of cryptocurrencies and other cybercurrencies can assist in addressing the challenges of attribution when investigating…

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Abstract

Purpose

The purpose of this paper is to show how global regulation of cryptocurrencies and other cybercurrencies can assist in addressing the challenges of attribution when investigating ransomware attacks and other types of cybercrime using these payment methods.

Design/methodology/approach

A literature review, looking at current academic research and discourse on the topic cryptocurrency regulation, is conducted to highlight current thinking and perceived difficulties in implanting a global regulatory framework. In addition, the research explores how governments have addressed the risks posed by cryptocurrencies and how regulation has been implemented. The research focuses on the regulatory approaches of Australia, Europe and the Americas to determine whether they could feasibly address the risks posed by cryptocurrencies and be implemented on a global scale.

Findings

To date, few sustained efforts have been made to regulate Bitcoin or other cybercurrencies. Where regulation has been introduced, it has often proven too costly to implement, thereby, stifling Bitcoin industry growth, or too ad hoc to function effectively. These regulatory pitfalls are substantiated by the continuing difficulty faced by law enforcement agencies, in identifying individual Bitcoin users and separating those that are using them for nefarious purposes from those that are using them for legitimate ones. These challenges appear to grow exponentially when it comes to prosecuting criminals for Bitcoin-related offences, due to the enormous lack of agreement within the justice system of most countries as to the appropriate legal definition for Bitcoin. This research highlights three characteristics that will be vital to the success of any global regulatory framework. These are consistency, clarity and cost-effective implementation. A regulatory framework for Bitcoin that lacks any one of these elements will fail to meet the requirements of every stakeholder in the regulatory process. A framework that is too costly to implement will stifle fintech innovation, subsequently depriving national economies of the multitude of potential benefits promised by fostering fintech entrepreneurship. Equally, a framework that is inconsistent will hamper the global cooperation necessary to combat Bitcoin-related crime.

Originality/value

This research evaluates research, discourse and regulatory responses from academic and governmental sources and discusses how a global response to cryptocurrency regulation will help address the growing problem of attribution when it comes to ransomware attacks, which has experienced a considerable spike in recent months.

Details

Journal of Money Laundering Control, vol. 22 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 12 July 2023

Kwadwo Antwi-Wiafe, Grace Nkansa Asante and Paul Owusu Takyi

This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana.

Abstract

Purpose

This paper aims to examine whether financial technology is complementing the performance of domestic financial institutions or substituting their performance in Ghana.

Design/methodology/approach

The paper used data from the Bank of Ghana Payment System Statistics and Time Series Data of the Bank of Ghana from 2012 to 2021, by using autoregressive distributive lags estimation technique.

Findings

The results showed that in both the long run and short run, financial technology has a significant negative impact on bank performance, indicating that fintech serves as substitutes rather than complements for Ghanaian banks. These results suggest that there must be a critical review on the interoperability policy in Ghana and that banks should take advantage of the financial technology to increase profit.

Originality/value

Based on the authors’ study, no empirical work has been extensively done in the Ghanaian context by examining how financial technology serves as either a complement or substitute for domestic banking institutions. This paper focuses on exploring the key definition of financial technology in Ghana and how transactions through these media are affecting or improving the performance of banks.

Details

Journal of Financial Economic Policy, vol. 15 no. 4/5
Type: Research Article
ISSN: 1757-6385

Keywords

Article
Publication date: 15 July 2020

Boon Cheong Chew, Xiaobai Shen and Jake Ansell

This study aims to investigate the entrance of Chinese-based Alipay’s mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign m…

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Abstract

Purpose

This study aims to investigate the entrance of Chinese-based Alipay’s mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign m-payment company because it would allow Chinese tourists spending while they are visiting Malaysia. It will view this entrance from a Malaysian perspective.

Design/methodology/approach

The views of Malaysian players (Bank Negara Malaysia officers, three Malaysian banks’ officers, Alipay-Malaysia officers, airport section manager, convenience store manager and airport store sales executive) were sought via qualitative interview concerning Alipay’s entry into the Malaysian market. Respondents who had relevant knowledge and/or were involved in Alipay m-payment technology development in Malaysia were contacted, while there remainder were obtained by snowballing. Secondary data was collected from Bank Negara Malaysia’s policy, three Malaysian banks’ reports, the Alipay-Malaysia public statements and the Airport and Convenience Store reports. Triangulation using primary and secondary data was used to safeguard the validity and reliability of the outcomes.

Findings

The entry strategy used by Alipay was different from those reported in previous studies. The establishment of Alipay-Malaysia was the first element of the “mode of entry” gaining pioneer status in Malaysia. The next stage was gaining support from Bank Negara Malaysia-Malaysian Central Bank and three Malaysian banks (Maybank, Public Bank and CIMB) through collaborative ventures with Alipay-Malaysia Sdn. Bhd., leading to acceptance nationwide by local merchants. The key driver of acceptance being Chinese outbound tourists in Malaysia.

Research limitations/implications

This case study was conducted during the early implementation of Alipay in Malaysia from 2015 until April 2019. During this period, there were challenges due to the lack of primary data. These were overcome by the support from the respondents and the secondary data.

Practical implications

This study contributes to insights from a different entry strategy that used tourism as a leading force. This can give guidance to other m-payment service providers or other countries as m-payment technology recipient about “market entry strategy” and “modes of entry” following Alipay’s approach.

Originality/value

To date, no study has been conducted to investigate the nature of Alipay m-payment in Malaysia. This qualitative study has examined the new phenomenon regarding how Alipay entered the Malaysian market. Moreover, this study can also contribute new insights into the existing theory of “market entry strategy” in terms of Alipay’s tourist-based approach.

Details

Qualitative Research in Financial Markets, vol. 12 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 21 October 2021

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

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Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This research paper concentrates on how business model innovation on multiple levels can be underpinned by digital technology transformation. As the phases of business model transformation progressed, the Indonesian manufacturing firm moved to a multi-layered business model across numerous markets, with widely scalable progress later being intensified through new partnerships with payment service providers and rapid delivery services. Managers are encouraged to proactively organize their external and internal resources to be readily deployable, so as to harness competitive advantages by shifting business models with optimal market timing.

Originality/value

The briefing saves busy executives and researchers’ hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 37 no. 11
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 19 August 2021

Siti Nurdiyana Atikah Sulaiman and Mohammad Nabil Almunawar

The purpose of this paper is to investigate factors that influence customers’ adoption of biometric-based point-of-sale in Brunei.

Abstract

Purpose

The purpose of this paper is to investigate factors that influence customers’ adoption of biometric-based point-of-sale in Brunei.

Design/methodology/approach

This paper extends technology acceptance model constructs with trust and some other variables as the framework to investigate their influence on the attitude toward the usage of a biometric point-of-sale terminal for payments in Brunei. Nine variables may influence user’s perception toward usage. The nine variables are needed, perceived ease of use, perceived usefulness, experience, innovativeness, privacy, security, trust and attitude toward usage. Multiple regression analysis was conducted to test hypotheses related to these nine variables.

Findings

It is found that the innovativeness of an individual and similar experience corresponds toward trust, which is positively related to attitude toward usage. Perceived usefulness and trust have significantly influenced the intention of individuals to use biometrics as an authentication method for payment.

Research limitations/implications

The nature of this research is to gather the public’s opinion and perception as much as it is deemed possible to get a bigger and clearer picture of the study. As the target respondence is citizens and residents of Brunei without any specification or exclusion, a large response would be needed to have a more reliable and accurate result. However, only 205 respondents can be gathered in this study. Had there been a longer time frame, it would be best to gather a lot more responses.

Originality/value

This paper explores the adoption of biometric authentication in large-scale point-of-terminals. It identifies factors that influence adoption. The results of this study could assist future researchers in which direction to take to further explore biometric as an authentication method for payment. In addition to this, it could also provide banks and financial technology in Brunei a clearer picture of the Brunei market and Bruneians perspective on the biometric system.

Details

Journal of Science and Technology Policy Management, vol. 13 no. 3
Type: Research Article
ISSN: 2053-4620

Keywords

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