Kevin Laracey, founder Paydiant, need to figure out how to run the company's payment processing with the new technology of smart phones. Consumers are increasingly turning to electronic payment methods such as credit cards and debit cards to make purchases. Retailers, however, believes that the major credit cards and debit issuers had too much market power, which led to higher costs for retailers to accept these forms of payment. Consumers are increasingly adopting smartphones and use of these phones to manage their lives. Market participants believe that consumers will soon need to use their smart phones to make purchases. Retailers like it because the increased competition in the industry payments. Paydiant had developed a software product that does not require new equipment to retailers and allow consumers to use their smart phones to make purchases. The company needs to decide how to bring a new product to market. The case also describes the existing payment processing market structure, reveals some of his key players, and introduces other new participants in the payments industry.
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by Jose Alvarez, V., Elizabeth C. Williamson, James Weber Source: Harvard Business School 23 pages. Publication Date: January 24, 2011. Prod. #: 511065-PDF-ENG
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