The global intentions of digital payment platforms: A comparative study of Vipps and Payr

Abstract

Digital platforms have become a significant feature in the global payment landscape, frequently disrupting traditional industry structures (European Payments Council, 2019). Innovative technology, shifting consumer behavior, and regulations are contributing factors to this alteration of business models (European Commission, 2019; Deloitte, 2019). However, limited knowledge exists of how these digital platforms internationalize their services, or in what way they make their platforms accessible for international markets (Ojala, Evers, & Rialp, 2018). To address this research gap, this thesis aims to focus on the digital platforms Vipps and Payr, while providing a deeper understanding of the differences between international strategies of digital payment platforms. The data collection analysis indicates that several factors influence digital platform internationalization, which is reviewed in four categories; financial resources, ownership, networks and reputation, and location. Substantial financial capital to overcome the cost of establishment, while putting the firm in a position to acquire relevant technology is deemed to be essential. The findings also highlighted the prominent role of the owners in decision-making, while a diversified network of relationships may increase the chances of international scale-up. Reaching critical mass is the most crucial goal for a digital payment platform, which can be significantly influenced by the location the firms opt to choose.