We analyze the impact of interchange fees on consumers' and merchants' incentives to adopt an innovative payment instrument, in a setting where there are adoption externalities between consumers and merchants. We show that consumer adoption decreases with the interchange fee for high degrees of...

In this paper, we provide a definition of mobile payments and we analyze the markets that could be targeted by mobile payment service providers, both in developed and in developing countries. Focusing on the case of developed countries, we introduce five cooperation models that have emerged or...

In this paper, we study the development of mobile payments as an innovation in developed countries. In particular, we introduce five cooperation models that have emerged or could emerge between banks, mobile network operators, and payment systems, for the development of this new payment method....