When technological superiority is not enough: The struggle to impose the SIM card as the NFC Secure Element for mobile payment platforms

de Reuver, G.A.; Ondrus, Jan

doi:10.1016/j.telpol.2017.01.004

When technological superiority is not enough

Title

When technological superiority is not enough: The struggle to impose the SIM card as the NFC Secure Element for mobile payment platforms

Author

de Reuver, G.A. (TU Delft Information and Communication Technology)
Ondrus, Jan (ESSEC Business School)

Date

2017

Abstract

Mobile network operators have long played an essential role in the Near Field Communication (NFC) mobile payment ecosystem. In most implementations, the SIM card has been the main technical component to secure payments. Currently, mobile payment providers are increasingly planning to place the Secure Element (SE) for authentication in the handset or cloud, rather than on the SIM card. This paper unveils factors that influence stakeholder preferences for the SE location. To structure the analysis, we use a multi-level framework based on concepts borrowed from multi-sided platform theory. Using interviews with stakeholders, we elicit themes and preferences for each level of the framework (provider, technology, and user). Our findings explain why mobile network operators, despite their superior technology, will likely lose the battle for control in the mobile payment ecosystem.

Subject

Digital platforms
Ecosystems
Mobile payment
Multi-sided platforms
Secure element

To reference this document use:

http://resolver.tudelft.nl/uuid:038012d2-a0c2-4835-a4b9-39e14be0cfaf

DOI

https://doi.org/10.1016/j.telpol.2017.01.004

Embargo date

2019-01-18

ISSN

0308-5961

Source

Telecommunications Policy