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receive data is not the same as interoperability at the data layer.• Human: This layer is the ability for humans to understand and act on the exchanged data. Although it is more abstract than the technological and data layers, this layer can be just as crucial for interoperability. Language is one form of human interoperability; in order to communicate, people need to use a common language. Another form of human interop is a willingness to work together. Interop often succeeds or fails based on the individuals and personalities at the end points of the data exchange, and their level of effort in working together successfully.• Institutional: The institutional layer is the ability of social systems to engage effectively. The legal system is one example of an institutional layer of interoperability. For instance, in order for two companies in different countries to collaborate, they need to reach a shared understanding of applicable law and be comfortable that their rights can be vindicated. Interop at the institutional layer does not require homogeneity of legal systems; instead, it requires only enough commonality to protect the interests of both parties. Although they are related concepts, it is important to clarify the relationship between interoperability and compatibility. Compatibility is a specific form of interoperability that represents certain design choices in the development of a system. For example, in 2014, the EU approved a directive that called for the use of a common standard for cell phone chargers.5 This legislation addressed a narrow design choice: the compatibility of the cables that provide power to mobile devices. The interoperability of mobile devices is a far bigger and more complicated issue than a single element of compatibility, but the compatibility of cables certainly is one element of it. Throughout this chapter, it is important to bear in mind that compatibility is an important part of interop and can play an important role in how well and easily systems work together.4.2.1 Mobile payments: Interop layers applied In any complex, interoperable system, all of the four layers will play a role. In some examples, one layer may be more important than others, but successful interoperability relies upon interconnection at every layer. The recent growth of mobile payment platforms is a useful illustration of how the layers interact to shape the success of the platform as a whole. The mobile-payment ecosystem highlights the important role that the institutional and human layers have played.Mobile payments are like traditional credit card transactions, just with a mobile device (typically a smartphone) instead of a plastic card. As smart phones have become more common, a variety of wallet-less electronic payment systems have proliferated, with mixed results. Beginning in 2011, Starbucks made it possible for customers to pay for their drinks using Starbucks’ mobile app. Today, over 16 per cent of U.S. transactions at Starbucks are made through an app, representing more than 7 million payments per week.6 Around the same time, Google announced Google Wallet, and although Google does not share detailed figures, there is evidence suggesting it has had limited use.7 The reportedly divergent results experienced by Starbucks and Google in this area have not discouraged other market entrants around the world. Recently, a federation of U.S. retailers, including the discount department store Walmart, announced CurrentC, a mobile payment platform designed to reduce the influence of traditional credit card companies and banks on retail transactions.8 In October 2014, The Republic of Korea’s Line messaging platform announced plans for a mobile payment service called Line Pay.9 And in March 2015, South Korean electronics giant Samsung purchased LoopPay, a system that allows greater backward compatibility with older credit card retail terminals. One of the most significant new entrants is Apple Pay, which was announced in September 2014. Within three days of rolling out its new app, Apple processed 1 million card activations.10 The number of card-issuing banks grew from six in September 2014 to 2,500 in March 2015, and the number of retailers accepting Apple Pay tripled to nearly 700,000.11 Trends in Telecommunication Reform 2016 101 Chapter 4