Technology and globalization: The European payments system as a case of non-globalization

Technology Analysis and Strategic Management

Volumn 8, Issue 4, 1996, Pages 455-466

  Howells, John ^a  

^a BRUNEL UNIVERSITY   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

CONCEPTUAL APPROACH; EFTPOS; NETWORK DESIGN; NON-GLOBALISATION; SERVICE SECTOR; TECHNOLOGICAL CHANGE;

EUROPE;

EID: 0030417129     PISSN: 09537325     EISSN: None     Source Type: Journal    
DOI: 10.1080/09537329608522463     Document Type: Article

References (45)

1. Much of this section is drawn from J. Howells & J. Mine, 'Competition, Cooperation and the Design of an EFTPOS Network', in: J. Howells & J. Hine (Eds), Innovative Banking - Competition and the Configuration of a New Network Technology (London, Routledge, 1993).
2. For example, for some years it was not possible to discriminate between Visa debit and credit cards, as Visa considered that schemes were the individual banks' business and there should be no differential branding of Visa itself. The development of Switch as a brand name for debit card services eventually resulted in Visa agreeing to create the Visa Delta brand for debit cards processed through Visanet.
3. Nearly 10 years later (1987) the French banks would attempt to control card fraud by a managed switch from magnetic stripe card technology to the more secure 'smart cards'.
4. The Retail Consortium (an association of the largest retailers) refused the conditions attached to Barclays' Connect card when it was first issued in 1987. Large retailers informally boycotted the pilot scheme for the banks' PIN-based, encryption and on-line version of EFTPOS. This was part of the power stuggle over control of the POS which continued throughout 1986-90.
5. J. Hine & J. Howells, 'The UK Banking Context for EFTPOS Development' in: J. Howells & J. Hine (Eds), Innovative Banking: Competition and the Management of a New Networks Technology (London, Routledge, 1993).
6. Anon, 'Belgian Retailers Refuse to Pay', in: RBI EFTPOS (London, Lafferty Publications, 1986), p. 6.
7. R. C. Woodman, 'A Retailer's View', paper presented to European Payments Conference, Sheraton Hotel, Edinburgh, 19-21 November 1991.
8. Ibid.
9. P. Loubiere & P. Riche, 'Les puces grimpent sur la Carte Bancaire', Liberation, 7-8 April 1992, p. 10.
10. Although in 1990 the banks has still not settled exactly how to apportion costs between them (memory cards cost FF25 compared to FF7 for magnetic stripe cards).
11. At one point retailers threatened to introduce their own card schemes, while the German banks replied that transaction charges would rise steeply if this happened.
12. M. Heinz, 'Electronic Cash - The German Banks' Final Approach to EFTPOS', paper presented to European Payments Conference, Sheraton Hotel, Edinburgh, 19-21 November 1991.
13. Ibid.
14. P. O. Sparen, 'PIN in Checkout - A Retail and Bank Joint Project', paper presented to European Payments Conference, Sheraton Hotel, Edinburgh, 19-21 November 1991.
15. Personal conversation.
16. Sparek, op. cit., Ref. 14.
17. Ibid.
18. Woodman, op. cit., Ref. 7.
19. Howells & Hines, op. cit., Ref. 1.
20. Commission for the European Communities, 'Making Payments in the Internal Market: Improving Banking Services for Individuals and Organisations, Background Report, ISEC/B29/1990, October, London, Commission of the European Communities.
21. Unpublished interview data.
22. A. Mitchell, 'Major Stores Threaten to Boycott Barclays' Bank,' Marketing, 14 May 1987, p. 1.
23. P. Troberg, 'Making Payments in the EC Internal Market', paper presented to European Payments Conference, Sheraton Hotel, Edinburgh, 19-21 November 1991.
24. Ibid.
25. C. Freeman & G. Oldham, 'Introduction: Beyond the Single Market' in: C. Freeman, M. Sharp & W. Walker (Eds), Technology and the Future of Europe (London, Pinter, 1991); M. Sharp, 'The Single Market and European Technology Policies', in C. Freeman et al., Ibid.
26. C. Freeman & G. Oldham, 'Introduction: Beyond the Single Market' in: C. Freeman, M. Sharp & W. Walker (Eds), Technology and the Future of Europe (London, Pinter, 1991); M. Sharp, 'The Single Market and European Technology Policies', in C. Freeman et al., Ibid.
27. T. Levitt, 'The Globalisation of Markets', Harvard Business Review, May/June 1983, pp. 92-102.
28. EFTPOS is only one of the component EFT networks that together could form the basis of an electronic EPS. Others include electronic data interchange (EDI) and automated teller machines (ATMs). Progress in linking or standardizing the payment services delivered by these networks would be progress towards an EPS and part of the 'globalization' of retail financial services.
29. For example, for a time plastic cards that operated in the ATMs of one European country (for example, Switch debit cards) were useless in another.
30. J. Fleck, 'Configurations: Crystallising Contingency', University of Edinburgh, Department of Business Studies, working paper series 91/15, 1991.
31. The point about the social construction of technology has been made repeatedly elsewhere.
32. A. H. Molina, The Transputer Constituency - Building Up UK/European Capabilities in Information Technology (Edinburgh, Programme on Information and Communication Technologies, 1989).
33. For example, EPOS retail tills are routinely supplied with the ability to be adapted to take smart cards, should the banks decide to launch a smart card payment service. By equipping tills in this way the suppliers are facilitating such a choice.
34. Levitt, op. cit., Ref. 26.
35. Ibid.
36. F. Frobel et al., The New International Division of Labour (Cambridge, Cambridge University Press, 1980).
37. J. Henderson, The Globalisation of High Technology Production (London, Routledge, 1989).
38. Ibid.
39. J. Howells & M. Woods, The Globalisation of Production and Technology (London, Belhaven Press, 1993).
40. G. Dosi, K. Pavitt & L. Soete, The Economics of Technical Change and International Trade (London, Harvester Wheatsheaf, 1990).
41. J. Howells & M. Woods, op. cit., Ref. 38.
42. For example, M. Anchordoguy, Computers Inc: Japan's Challenge to IBM (Cambridge, MA, Harvard University Press, 1989) on the Japanese state and its development of the computer industry, or L. S. Kim & C. J. Dahlman, 'Technology Policy for Industrialization - an Integrative Framework and Korean Experience', Research Policy, 21, 1992, pp. 437-452, on South Korea's use of technology policy instruments for development.
43. For example, M. Anchordoguy, Computers Inc: Japan's Challenge to IBM (Cambridge, MA, Harvard University Press, 1989) on the Japanese state and its development of the computer industry, or L. S. Kim & C. J. Dahlman, 'Technology Policy for Industrialization - an Integrative Framework and Korean Experience', Research Policy, 21, 1992, pp. 437-452, on South Korea's use of technology policy instruments for development.
44. W. Bijker et al., The Social Construction of Technological Systems (Cambridge, MA, MIT Press, 1987); D. MacKenzie & J. Wajcman, The Social Shaping of Technology (Milton Keynes, Open University Press, 1985).
45. W. Bijker et al., The Social Construction of Technological Systems (Cambridge, MA, MIT Press, 1987); D. MacKenzie & J. Wajcman, The Social Shaping of Technology (Milton Keynes, Open University Press, 1985).