Network constellations for mobile payments - Influence of the leading partner on NFC-based mobile digital wallets

Abstract: The mobile payments industry, which is currently at an early stage of development, is taking the direction to be established mainly as an NFC-based industry, and, moreover, led by the mobile digital wallets setting. A mobile digital wallet is a complete payment app for your NFC-enabled mobile phone that enables consumers to pay at stores at the point of sale with a mobile phone. The digital wallet, which is associated with a credit card, integrates all payment-related services like the management and storage of receipts, coupons and offers, and loyalty cards. Currently, there are three big partnerships going ahead of the NFC mPayments stream: Google Wallet, VISA’s Digital Wallet and ISIS Mobile Wallet. Each one of these three mobile digital wallets is led by an actor coming from a different industry of origin. Google Wallet is led by Google, an internet and technology actor. VISA’s Digital Wallet is managed by Visa, a traditional payment processor. And ISIS Mobile Wallet is led by three of the largest US telecom operators: AT&T, T-Mobile and Verizon. Thus, applying a business network theory to analyse how the industry of origin of the mobile digital wallet affects the interaction within the partnership formed is a unique and perfectly fitted opportunity. The aim of this Master Thesis was to analyse the influence, regarding interaction, of the origin industry of the leading partners on the NFC-based mobile digital wallet partnerships of the mobile payments developing industry. A literature review on business network theory was conducted, in order to identify key features of the business landscape affecting interaction on business networks, as well as an industry analysis of the mobile payments developing industry. Then, the business network theory approach was applied to the study of the mobile payments digital wallet setting, conducting a discussion based both on the industry analysis performed and a set of interviews with experts on the mobile payments industry.