Successful introduction of new payment methods through 'co-opetition'.

Payment services constitute a two-sided market of payers (eg consumers) and payees (eg merchants). A new payment method needs to reach critical mass on both sides to become successful, which is not without difficulty. This paper analyses how this chicken-and-egg problem can be overcome through a combination of cooperation and competition between banks and other players involved in the payment chain. The emergence of e-payments provides insight into critical success factors and suggestions for successful introduction of new payment methods. [ABSTRACT FROM AUTHOR]