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cent of each transaction -- displeasing retailers.15 For that reason, the CurrentC mobile platform, which is run by major U.S. retailers, is trying to circumvent the existing institutional payment structure. By withdrawing funds directly from end-user checking accounts instead of using credit cards, CurrentC aims to take advantage of the different institutional structure involving bank withdrawals, and thereby avoid the fees associated with credit card processing.As the example of mobile payment systems demonstrates, all layers of interop are important. That is why no short definition of interop fully captures its scale and complexity. The example also highlights how technology, market, and law can either support or inhibit interoperability in a multitude of ways.From a technical perspective, the mobile payments example shows that there is no single technical architecture for interoperability. Some market actors use NFC, others use optical bar codes, and still others use hybrid technologies. A company’s choice of technological platform can have a big impact on its ultimate interoperability; the more widespread and available the technology is, the greater the opportunities for interoperability.From a market perspective, the mobile payments example also shows the influence of network effects on actor behavior. Companies often set interop strategies depending on firm-specific factors, such as current market position, technological capabilities, and IP portfolio, among others. Perversely, network effects might be a disincentive for companies to use or market interoperable systems or devices. Apple, for example, seeks to use its mobile payment platform as a competitive differentiator. Thus, it has chosen not to interoperate with other mobile devices, limiting the platform to its newest iPhones.From a legal perspective, the mobile payments market shows the influence of general laws such as competition law, consumer protection law, contract law, and tort law, as well as self-regulation. In particular, the self-regulation of the payment industry shows a bi-directional influence that simultaneously supports greater levels of interoperability and less. In the United States, new rules set by the industry will hold retailers liable for fraud unless they switched to new, interoperable payment terminals by October 2015.16 This self-regulation is increasing interoperability in several ways. First, the new payment terminals will support NFC payments, dramatically increasing interoperability between retailers and services like Apple Pay and Google Wallet. Second, self-regulation increases institutional interop by bringing the United States into line with European standards for more secure credit card processing. However, industry self-regulation arguably has also 104 Trends in Telecommunication Reform 2016 Figure 4.4: Screen capture of instructions for adding payment information to CurrentC account Source: CincoTec, http://www.cincotec.com/blog/apple-pay-vs-currentc