Analyzing the network effects of digital payment ecosystems in the context of platform economics, user adoption patterns, and competitive strategies in financial technology markets

Sambakiu, Oluwabukola (2025) Analyzing the network effects of digital payment ecosystems in the context of platform economics, user adoption patterns, and competitive strategies in financial technology markets. International Journal of Science and Research Archive, 16 (1). pp. 803-816. ISSN 2582-8185

The proliferation of digital payment ecosystems represents a transformative paradigm shift in financial technology markets, fundamentally altering traditional transactional frameworks through sophisticated network effects and platform economics mechanisms. This comprehensive research review critically examines the intricate relationships between network externalities, user adoption dynamics, and competitive strategic positioning within contemporary digital payment landscapes. By analyzing the complex interplay between platform economics principles, consumer behavioral patterns, and market positioning strategies, this study reveals how network effects serve as both catalytic drivers of ecosystem growth and formidable barriers to market entry. The investigation explores multifaceted implications of digital payment platform evolution, demonstrating their capacity to reshape financial service delivery, consumer engagement paradigms, and competitive market structures. Through systematic analysis of empirical evidence and theoretical frameworks, this review illuminates the revolutionary potential of network-driven digital payment ecosystems to create self-reinforcing value propositions that transcend conventional financial service boundaries and establish new paradigms of economic interaction and market dominance.