Large network for end users

Large network for end users

Large network of end users can create a lock-in effect in that it can be perceived as difficult to make or receive payments with a new electronic mobile recharge service if it is, or becomes as widely online recharge accepted as the existing payment service. A new payment must therefore create a substantial added value of the end users to be able to establish itself on the market.


For already established players, however, economies of scale reduce the cost of innovative payment, and thus facilitate the introduction of this, if production can be coordinated with any other existing. Hos online recharge established payment service providers are often electronic mobile recharge internal competition between different payment services. If the competitive pressure from outside is weak, so, for example, a bank could be encouraged to market a new paid service that attracts customers from an existing service.


From the payment service provider's perspective, the new service cannibalizing the old. Loss of income on the old service risks making the new electronic mobile recharge service flotsam. Related services is an additional barrier. For many recipients, the payment service is online recharge intimately linked with the surrounding services, and for a player who wants to compete with a new paid service is not enough simply pay service, but also about the services must be offered. To invest the sums and implement the effort involved in developing the corresponding system of services can become too demanding.

This barrier to new entrants payment services is particularly evident when it comes to receivers exhibiting many invoices, such as operators and power companies. In addition to the cost and effort to develop and implement systems require the operator to be a bank to efficiently and safely could provide some surrounding services. These receivers are also very demanding and have great online recharge bargaining power, and the payment service can sometimes be unprofitable for banks. The operator can offer related services, becomes a prerequisite for the full package electronic mobile recharge of services to be profitable. Bank accounts A related barrier for new entrants, which are not banks, is that they do not have access to bank accounts.


Today keeps the paying online recharge party is often their money in a bank account. The bank gives him access to the money in the bank account of some specific way, with bank cards, internet banking, giro form, cash withdrawals over the counter and more.Generally, replacing individuals rarely the primary electronic mobile recharge bank where they have their checking account, savings and loans. New players offering payment services to the payer need therefore often somehow get the money lying on the bank account of their payer's behalf. The new entrant is then referred to the specific ways in which banks offer, and they usually require that the payer himself undertakes something (for example, giving the bank an order to make a transfer).

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