Global non-cash payments has observed an increased by 60% since 2015. This rapid growth has been a results of technological innovation and increased presence of regulation. Digital payments offer exciting opportunities and many banks and other nancial institutions have been innovating in the domain. This article provides a comparison of two technological innovations and challenges, provides the basis for a conceptual framework on how to compare innovative digital payments solutions, such as future directions in the evolving payments landscape.

1. COMPARISON OF TWO
TECHNOLOGIES FOR DIGITAL
PAYMENTS: CHALLENGES AND
FUTURE DIRECTIONS
Galena Pisoni
Balint Molnar
Adam Tarcsi

2. INTRODUCTION
•Global non-cash payments has observed an increased by 60% since
2015.
•This rapid growth has been a results of technological innovation and
increased presence of regulation.
•Digital payments offer exciting opportunities and many banks and
other nancial institutions have been innovating in the domain.
•This article provides a comparison of two technological innovations
and challenges, provides the basis for a conceptual framework on
how to compare innovative digital payments solutions, such as future
directions in the evolving payments landscape.

3. BACKGROUND
•Payment systems are the cornerstone of every economy, and payments
innovation is a critical contributor to worldwide economic development*
•Financial institutions (and not banks) have been successful in identifying unmet
needs and enhancing existing payment solutions, embracing underserved
populations and enhancing payments system efficiency**
•New payments types require close collaboration between banks and non-banks
to create the underlying infrastructure, which is not always easy to set***
*Weichert, M.: Payments innovation: A comparison of banks and non-banks and how they can learn from each other. Journal of Payments Strategy &
Systems 2(3), 236{249 (2008)
**Henningsson, S., Hedman, J.: Transformation of digital ecosystems: The case of digital payments. In: Information and Communication Technology-EurAsia
Conference. pp. 46{55. Springer (2014)
***Hedman, J., Henningsson, S.: Competition and collaboration shaping the digital payment infrastructure. In: Proceedings of the 14th Annual International
Conference on Electronic Commerce. pp. 178{185 (2012)

4. • This innovation solution is an app that
securily stores your personal credentials on
your smart phone as if it was your passport.
Then use it for easy identification or
authentication. Such as identify at a bank
desk, open a door, access to a building,
authentication to an online service.
• Technology that provides it’s customers
solutions (final clients and B2B) to include in
their online or mobile services, e.g. as part
of their mobile banking, for identity
providers, traveling services, public
CASE STUDY 1: PAYMENT SYSTEM BASED ON IN
PHONE IDENTIFICATION

5. Two services:
• The app has the personal details
• The app can be used to approve / do
transactions
Use scenario’s:
• Human-to-human
• Human-to-machine (e.g. door, ATM)
• Online
CASE STUDY 1: PAYMENT SYSTEM BASED ON IN
PHONE IDENTIFICATION

6. • The app addresses the desire to
switch to mobile only
• Secure only identification without
prints, photo’s of ID docs
• One app to replace multiple keys,
cards, tokens, …
• Need for reliable personal
information/credentials
• High security levels
CASE STUDY 1: PAYMENT SYSTEM BASED ON IN
PHONE IDENTIFICATION

7. CASE STUDY 2: PAYMENT SYSTEM BASED
ON BIOMETRIC (FACE DETECTION)
This innovation aims to create the next evolutionary step in
digital payments.
It is a simple solution for seamless paying experience based on
biometric features allowing hardware-less payments with more
efficiency, security and comfort compared to traditional methods,
improving user experience both for merchants and customers.

8. • Product features
• Registrationand management
of Merchants and Customers
• Basic information
• Payment information
• Multi-modal biometrics
• Payment transactionhandling
• Merchant InitiatedTransactions
• Highly secure Customer authentication
• Accepting payment transaction
by the authorized Customer
• Limits, notifications,history
CASE STUDY 2: PAYMENT SYSTEM BASED
ON BIOMETRIC (FACE DETECTION)

9. Aims:
-Make payments simple, plug & play, without making
big changes to the existing payment systems –
hardware or the process itself.
- System is fast (NFC speed) and simple, otherwise
the product is not competitive as we are creating
longer waiting lines and poor user experience.
-Safety is the top priority on merchants and
shoppers side.
-Hardware good enough to recognize changes due
to illness, weight loss, face plastic surgery, make up,
etc
-The scanning process (before using PwaS) simple
and fast
CASE STUDY 2: PAYMENT SYSTEM BASED
ON BIOMETRIC (FACE DETECTION)

10. DIMENSIONS OF COMPARISON
•Convenience: Payments systems must be more convenient than
traditional payments systems. If the system must go thought various
procedures to use the payment service, users might lose interest and
prefer the traditional payment approaches.
•Security: These payments systems keep customers data, security is an
important requirement, and the users data should not be exposed to
malicious attackers, and such information must not be available to
unauthorized third party.
•Simplicity: The solution must be lighter and with developments of IoT
technology this aspect became even more important for each sphere,
payments included. The payment system must be optimized and
simple.
•Availability: New payments services should be designed in a way that
allow for an easy availability in most possible places, that means on
various devices or or operating systems.

11. COMPARISON
High Medium Low
Convenience Face detection Phone identification
Security Phone identification
Face detection
Simplicity Face detection Phone identification
Availability Face detection Phone identification

12. DISCUSSION
•We study how new types of digital payments solutions are designed and
configured to enter the payment markets. We analyzed two case studies of
innovative payments solutions and we glean insights on how the platforms are
developed and designed across 4 axes: convince, security, simplicity and
availability.
•We exclude other factors from this study that others scholars used*,** because we
focus on digital payments solutions from innovation point of view and we want
to study and understand better their potential to penetrate in established
markets.
•We are aware that other factors may influence the general availability of the
payment system in first place, however, we investigate the design logic of the
payments system and how they in to higher or lower possibility for adoption by
final customers.
*Kazan, E., Damsgaard, J.: A framework for analyzing digital payment as a multisided platform: A study of three european nfc solutions (2013)
** Ondrus, J., Gannamaneni, A., Lyytinen, K.: The impact of openness on the market potential of multi-sided platforms: a case study of mobile payment
platforms. Journal of Information Technology 30(3), 260{275 (2015)

13. DISCUSSION
•One can argue that banks and merchants prefer payments instruments that are
easy to use right-away or highly compatible and accessible with their current
payment infrastructure, to reduce adoption costs and this add another possibility
or variety to the existing customer and business structure. In this respect, the
solution based on mobile payment like in our Phone identification, can potentially
turn to be a challenge for merchants in terms of incompatibility with existing
payment infrastructure
•Controlling and leveraging on the existing user base is a precondition for success
of digital payments innovative solutions, so in this respect our Face detection case
study provided better basis for still serving the customer base of the merchant
while diversifying and providing different (if not even) fun approaches to engage
them.
•Ultimately, it is important to recognize the roles that banks, non-banks and
regulators can play in innovation. Both of the case studies came from non-banks
institutions, still collaboration between all is important step to guarantee success
of the new payment deployment.

14. CONCLUSIONS AND FUTURE
DIRECTIONS
•Our research compared two case studies of innovative digital payments solutions and
provided a conceptual for comparing different payments solutions design and
configurations to understand successful payment solutions.
•We performed a comparative-case study in a European setting and provided the basis
for a conceptual contribution to better describe and understand contemporary digital
payments platforms in terms of their market-entry potential.
•Future research could focus on innovative payments solutions and what they mean for
the banks. Payment innovation may for instance lead change in fees and may require
transactions regulation, A fee reduction may change the traditional model on which for
now for instance banks process payments with cards, and may in turn increase or
decrease possibilities for use.
•Another future research can explore how the different layers of complexities of the
payment platforms, and how for instance the introduction of such payments system
influence and shape existing complex business processes**, or for instance if on
strategy side for financial companies to become more digital*, and how potentially
changes in various technology layers impact adoptions by final customers
*Pisoni , Molnar & Tarcsi, (2020) Knowledge management and use of data science in financial industry, Journal of Financial Studies (in print)
*Pisoni, G.: Going digital: case study of an italian insurance company. Journal of Business Strategy (2020)

15. THANK YOU
Don’t hesitate to contact me for any further questions.