The Evolution of Global Instant Payment Infrastructure

24 Pages Posted: 1 Jun 2020

See all articles by Juan Camilo Giraldo Mora

Juan Camilo Giraldo Mora

Copenhagen Business School

Jonas Hedman

Copenhagen Business School

Michel Avital

Copenhagen Business School

Date Written: May 10, 2020

Abstract

Global instant payment and its underlying infrastructure evolution are commonly referred to as fragmentation, with the proliferation of local instant payment systems, or consolidation, with few global instant payment systems prevailing. Even though these evolution views and related management practices are valuable, they emphasize linear and conflict-oriented evolution perspectives that undermine the possibility of progressive fragmentation and consolidation. Conversely, this paper introduces three mechanisms, transactional, modular, and institutional, as well as three related qualities, service layers, service granularity, and service integration, that characterize the evolution of global instant payment infrastructure. Drawing upon four global payment case studies, the paper illustrates evolution patterns that emerge with the mutual and reinforcing influence between these evolution mechanisms and qualities. We find that the evolution of global instant payment infrastructure is taking place with the creation, and integration, of context-specific payment services, and the reduction of layers in payment services. This perspective revisits the fragmentation vis-à-vis consolidation arguments in favor of evolution patterns, which account for progressive fragmentation and consolidation of global instant payment infrastructure.

Keywords: Global Instant Payment, Infrastructure, Technology, Evolution, Case Study

Suggested Citation

Giraldo Mora, Juan Camilo and Hedman, Jonas and Avital, Michel, The Evolution of Global Instant Payment Infrastructure (May 10, 2020). Available at SSRN: https://ssrn.com/abstract=3591972 or http://dx.doi.org/10.2139/ssrn.3591972

Juan Camilo Giraldo Mora (Contact Author)

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Jonas Hedman

Copenhagen Business School ( email )

Solbjerg Plads 3
Frederiksberg C, DK - 2000
Denmark

Michel Avital

Copenhagen Business School ( email )

Howitzvej 60
Frederiksberg, DK - 2000
Denmark

HOME PAGE: http://www.cbs.dk/en/staff/mavitm

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