Banking strategies in launching e-payment innovations

A smart card-based payment system is a challenging technology in financial services. Given the electronic commerce (e-commerce) opportunity, banks and non-banks compete to deploy smart card technology for internet use. This paper is concerned with the business strategies in managing payment innovations. Particularly, the study looks at the smart card electronic cash (e-cash) innovation in the financial service industry and analyses the long-term viability of this new payment option. The paper also discusses what is needed in the future to make smart card-based payment system viable and commercially successful.