Applying IT investment decision theory to payment card upgrades

Thumbnail Image

Persistent link to this item

View Statistics

Journal Title

Journal ISSN

Volume Title


Applying IT investment decision theory to payment card upgrades

Published Date




Thesis or Dissertation


The new Europay-MasterCard-Visa (EMV) Chip-and-PIN payment cards are slowly replacing traditional magnetic stripe cards worldwide. Although it makes little economic sense for the individual firm to take on the significant cost required to upgrade hardware and software to convert to the new standard, wide-scale adoption results in positive externalities such as a reduction in payment card fraud that benefit all interested parties. This study investigates the investment decision at the country level and examines the variability of when countries choose to adopt the new standard as a unique application of existing theoretical economic models of IT investments. It finds evidence supporting a relationship between high payment system switching costs and delayed EMV conversion as shown through several separate regression models, where switching cost is represented by the level of payment card utilization.


Related to



Series/Report Number

Funding information

Isbn identifier

Doi identifier

Previously Published Citation

Suggested citation

Gulbransen, Mitchell. (2015). Applying IT investment decision theory to payment card upgrades. Retrieved from the University Digital Conservancy,

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.