Catching the Fast Payments Trend: Optimal Designs and Leadership Strategies of Retail Payment and Settlement Systems

2023 | Management Information Systems Quarterly | Citations: 0

Authors: Guo, Zhiling; Ma, Dan

Abstract: Recent financial technologies have enabled fast payments and are reshaping reta ... Expand

Abstract: Recent financial technologies have enabled fast payments and are reshaping retail payment and settlement systems globally. We developed an analytical model to study the optimal design of a new retail payment system in terms of settlement speed and system capability under both bank and fintech firm heterogeneous participation incentives. We found that three types of payment systems emerge as equilibrium outcomes: batch retail (BR), expedited retail (ER), and real-time retail (RR) payment systems. Although the base value of the payment service positively affects both settlement speed and system capability, the expected liquidity cost negatively impacts settlement speed, and total transaction volume and technological effectiveness positively impact system capability. We identified three leadership strategies to maximize social welfare: the government mandate (GM) strategy, the fintech-inclusive (FI) strategy, and the fintech-exclusive and bank-exclusive (FE+BE) strategy. When the base value of the payment service is either low or high, the GM strategy leads to a socially optimal unified system. When the base value of the payment service is in the intermediate range, and if fintech firms have a significant technological advantage over banks, then both GM and FI strategies result in a socially optimal unified system; otherwise, the FE+BE strategy results in a socially optimal fragmented system. Further, we proposed a Shapley-value-based cost-sharing rule under the GM strategy to fairly allocate social welfare among the system participants. Our findings offer important policy insights into the optimal system designs, leadership strategies, and the government regulator's role in shaping future innovations in the payments industry. Collapse

Topics: electronic finance systems design electronic payment economic surplus IS economics

Methods: optimization model mathematical model sensitivity analysis literature study machine learning

Fraud Detection in Mobile Payment Systems using an XGBoost-based Framework

2023 | Information Systems Frontiers | Citations: 0

Authors: Hajek, Petr; Abedin, Mohammad Zoynul; Sivarajah, Uthayasankar

Abstract: Mobile payment systems are becoming more popular due to the increase in the numb ... Expand

Abstract: Mobile payment systems are becoming more popular due to the increase in the number of smartphones, which, in turn, attracts the interest of fraudsters. Extant research has therefore developed various fraud detection methods using supervised machine learning. However, sufficient labeled data are rarely available and their detection performance is negatively affected by the extreme class imbalance in financial fraud data. The purpose of this study is to propose an XGBoost-based fraud detection framework while considering the financial consequences of fraud detection systems. The framework was empirically validated on a large dataset of more than 6 million mobile transactions. To demonstrate the effectiveness of the proposed framework, we conducted a comparative evaluation of existing machine learning methods designed for modeling imbalanced data and outlier detection. The results suggest that in terms of standard classification measures, the proposed semi-supervised ensemble model integrating multiple unsupervised outlier detection algorithms and an XGBoost classifier achieves the best results, while the highest cost savings can be achieved by combining random under-sampling and XGBoost methods. This study has therefore financial implications for organizations to make appropriate decisions regarding the implementation of effective fraud detection systems. Collapse

Topics: fraud detection mobile system mobile payment electronic payment Python

Methods: XGBoost machine learning anomaly detection supervised learning experiment

CRYPTOCURRENCIES, STABLECOINS AND CENTRAL BANK DIGITAL CURRENCIES: THE IMPACT OF TRUST AND PERCEIVED RISK

2023 | European Conference On Information Systems | Citations: 0

Authors: Hamm, Peter

Abstract: Financial technology is undergoing rapid developments with the arrival of crypt ... Expand

Abstract: Financial technology is undergoing rapid developments with the arrival of cryptocurrencies, the introduction of stablecoins, and more recently the discussion surrounding central bank digital currencies. The adoption of these technologies has received significant attention, but there has not yet been any research as to how the adoption factors for the three currencies differ, given their inherent similarities. This paper proposes to estimate the effect of trust and perceived risk on the adoption intention of the three aforementioned payment systems by creating three closely-matched questionnaires for each digital currency. This will enable us to estimate the effects of risk and trust in a way that makes it possible to compare the effect sizes for the different technologies, and can help evaluate whether a reduction of perceived market risk is sufficient for cryptocurrency adoption, and whether backing by the central bank may confer more benefits to adoption than the trustlessness touted for cryptocurrencies. Collapse

Topics: stablecoin cryptocurrency IT security threat self efficacy social commerce

Methods: survey meta analysis

Theories: unified theory of acceptance and use of technology technology acceptance theory

ON CONTEXTUAL CONTRADICTION: A FIELD STUDY OF DIGITAL PAYMENT INCLUSION IN MEXICO

2023 | European Conference On Information Systems | Citations: 0

Authors: Kessel, Lino; Mora, Juan Camilo Giraldo

Abstract: Digital payment technology allows financially excluded communities to access fi ... Expand

Abstract: Digital payment technology allows financially excluded communities to access financial services by crossing infrastructural, regulatory, and economic boundaries. However, there are also cases where its presence might lead to exclusion. In addition to these diverse findings, it remains unclear why exclusion prevails in Mexico, where digital payment technology is highly developed for Latin America. Consequently, this study addresses how and why the Mexican context conditions digital payment inclusion. Based on a dynamic understanding of context and a field study, we operationalise Mexico's contextual conditioning through inequalities. Using observations, interviews and documents, the study's results reveal what we term contextual contradiction. Socio-economic infrastructure separation, evolutionary regression, and informal legislation are contextual contradictions which convey a dynamic conditioning leading to digital payment inclusion and exclusion. These findings contribute to debates on contextual explanation by addressing how context and phenomenon emerge together without bounding, stabilising, or situating context. Collapse

Topics: electronic payment information system use mobile application legal context systems analysis

Methods: qualitative interview field study literature study theory development mixed method

Examining the Relationship between National Cybersecurity Commitment, Culture, and Digital Payment Usage: An Institutional Trust Theory Perspective

2023 | Information Systems Frontiers | Citations: 1

Authors: Krishna, Ben; Krishnan, Satish; Sebastian, M. P.

Abstract: Cyberattacks can be considered one of the fundamental challenges that paralyze t ... Expand

Abstract: Cyberattacks can be considered one of the fundamental challenges that paralyze the progress of digital payment usage (DPU) progress among citizens, as consumers shun away from using digital banking services due to increased concern over information security. National Cybersecurity Commitment (NCSC) has emerged as a preventive cybersecurity mechanism for countries to tackle such cybersecurity threats. Previous studies have shown that a country's NCSC positively impacts the business and economy of the country. This study examines the effect of NCSC on digital payment usage (DPU) across nations by grounding our discussion on the institutional trust theory. As trusting belief in security measures is a culturally embedded characteristic, we also examine the moderating role of national culture through Hofstede’s cultural dimensions. We use multilevel models to analyze publicly available archives of repeated cross-sectional data covering 76 countries to test the proposed relationships. Our findings indicate that NCSC has a positive influence on DPU. Further, our results highlight that the relationship between NCSC and DPU in a country is contingent on cultural dimensions. Overall, the evidence suggests that a competent cybersecurity environment compatible with cultural values can influence the speedy diffusion of digital payments in a country. Implications of our findings for research and practice are also discussed. Collapse

Topics: IT security internet technology national culture electronic finance information system use

Methods: longitudinal research hierarchical linear modeling cross sectional research archival research time series analysis

Theories: trust theory cultural dimensions theory contingency theory theory of economic growth

“My Precious!”: A Values-Affordances Perspective on the Adoption of Bitcoin

2023 | Journal of the Association for Information Systems | Citations: 0

Authors: Lichti, Constantin; Tumasjan, Andranik

Abstract: Given the growing pervasiveness of information systems (IS) in everyday life, r ... Expand

Abstract: Given the growing pervasiveness of information systems (IS) in everyday life, recent research has acknowledged that IS technologies are often not value free but are instead infused with fundamental personal values. However, little is known about how such values explain why people assimilate these technologies and their affordances. In the intriguing case of Bitcoin, personal values-especially libertarian political values-played an essential role in clarifying the ideological underpinnings of Bitcoin and its early adoption. Consequently, we draw on research on personal values and affordance theory to develop and test a model explicating how these personal values guide individuals toward using IS applications with salient affordances that address their values. Specifically, we hypothesize and test how individuals' personal values (i.e., libertarian political values) influence their attitudes toward Bitcoin affordances and their Bitcoin use behavior using data from a multiple administration survey of 236 users and nonusers of Bitcoin. Our results indicate that libertarian political values affect individuals' attitudes toward Bitcoin affordances, which in turn mediate the effects of these values on actual Bitcoin use. Our findings advance the field by demonstrating the importance of integrating values into the conceptualization of IS technology affordances. Collapse

Topics: Bitcoin affordance blockchain information system use user experience

Methods: theory development survey design artifact data transformation post-hoc analysis

Theories: theory of affordance sociomaterialism theory socio technical theory

Memoirs from Bukhalalire: a poetic inquiry into the lived experience of M-PESA mobile money usage in rural Kenya

2023 | European Journal of Information Systems | Citations: 0

Authors: McBride, Neil; Liyala, Samuel

Abstract: M-PESA is the world’s leading mobile money system which supports the person-to-p ... Expand

Abstract: M-PESA is the world’s leading mobile money system which supports the person-to-person transfer of money. While the institutional meaning of M-PESA concerning financial inclusion and market access is well documented, the meaning attached to M-PESA by users, particularly in rural communities, has received less attention. This study examines the meaning of M-PESA to the rural poor in villages in Busia County, Western Kenya using the approach of poetic inquiry in which the expressions of local people are rendered as poetry in order to draw out affective and lived experience. A reading of the poems of seven participants reveals the perception of M-PESA as a means of empowerment for women, alignment with their social identity and access to education. This contrasts sharply with the meaning of M-PESA as seen by commercial and non-commercial institutions which focuses on connecting the unbanked to formal banking systems and the exploitation of M-PESA as a primary revenue stream. The paper concludes by highlighting the need for regulation which is delicately balanced between independence from institutional control and the exposure of the rural poor to exploitation. Collapse

Topics: mobile payment mobile system social identity social media social network

Methods: qualitative interview field study focus group biometric measurement facial recognition system

Towards A Script-Affordance Fit Model

2023 | Americas Conference on Information Systems | Citations: 0

Authors: Mesgari, Mostafa

Abstract: This research-in-progress aims to offer a more nuanced and dynamic perspective ... Expand

Abstract: This research-in-progress aims to offer a more nuanced and dynamic perspective to the task-technology fit model. It draws on the script and affordance theories to reconceptualize task and technology concepts and their fit. In brief, users are continuously balancing their changing task scripts with the evolving affordances of the system. The scripts are constantly modified to incorporate new affordances and user experiences. The scripts also affect how people understand the affordances available to them. The essay discusses the implications of the proposed model and concludes with the next steps for the study. Collapse

Topics: electronic commerce user experience affordance information system use electronic payment

Methods: experiment literature study

Theories: theory of affordance script theory theory of task technology fit

Collaborative Work Practices for Management Education: Using Collaboration Engineering to Design a Reusable and Scalable Collaborative Learning Instructional Design

2023 | HICSS | Citations: 0

Authors: Oeste-Reiß, S.; Söllner, M.; Leimeister, J.

Abstract: Pandemics like COVID-19 highlight the needs and pitfalls of inclusive and equit ... Expand

Abstract: Pandemics like COVID-19 highlight the needs and pitfalls of inclusive and equitable education in a digital society. IT-based instructional designs are needed to increase learners' expertise, and to develop higherorder thinking skills. Instructional designs for collaborative learning (CL) seem to be a promising solution. However, they are mostly suitable for face-toface and not for distance teaching. The core problem that impedes their reusability and scalability is a 'collaboration problem' for which collaboration engineering (CE) provides guidance. Therefore, we deploy a design science research study and contribute to CL and CE literature. We develop requirements and provide the design of an IT-based collaborative work practice fostering CL. We provide empirical evidence with an online experiment in a large-scale lecture with undergraduate business information students. This reveals that groups of learners who followed our CL experience achieve higher levels of expertise than those who followed a traditional ad hoc CL experience. Collapse

Topics: online learning system team productivity productivity collaborative work spreadsheet

Methods: experiment design science experimental task case study nonparametric test

Why would microentrepreneurs continue using mobile payments? An entrepreneurial perspective with evidence from India

2023 | European Conference On Information Systems | Citations: 0

Authors: Pal, Abhipsa; De', Rahul; Rao, H. Raghav

Abstract: ... Expand

Abstract: Collapse

Topics: mobile payment mobile system electronic payment information system use usage intention

Methods: survey partial least squares path modeling PLS tool survey design experiment

Theories: transaction cost economics