Payment network effects
What are Payment network effects?
More accepting merchants make a payment service more useful to shoppers; participating shoppers make acceptance more useful to merchants.
How Payment network effects work
More accepting merchants make a payment service more useful to shoppers; participating shoppers make acceptance more useful to merchants.
Case studies tagged with Payment network effects
Each link opens the passage tagged with this concept.
The question to ask of a company
Does additional merchant acceptance benefit existing shoppers, and do participating shoppers make acceptance more valuable to merchants?
Examples
- Shop Pay: shared shopper recognition across participating stores, retained as a candidate.
Who names it
| Author | What they call it / where it appears |
|---|---|
| NFX | Two-sided network effects (payment application) |
Note. This is a payment-specific application of two-sided network effects. Processing volume, payment integration and fees alone do not establish it.