Critical Factors Influencing the Successful Development of e-Micropayment Program

Micropayment is common in retail outlets and public transport system. Electronic micropayment systems have been introduced to reduce the need for users to carry cash. However, many of such systems are not successful. Hence there is a need to understand the critical factors which help such systems to succeed. This study uses EasyCard, an electronic wallet widely used in northern Taiwan, for such an investigation. Through the DEMATEL method, this study shows that network effect plays a very important role in the success of e-micropayment system. The factors influencing the development of e-micropayment programs are highly inter-related and in fact, re-enforce one another, leading to positive feedback and bandwagon effect. It is found that factors such as reliability, more value-add locations, acceptance by merchants and users not only increases the popularity of the system, it also affects and re-enforces other factors through a positive feedback loop.