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Payment System Competitiveness

Author

Listed:
  • Frantisek Bartes

    (Brno University of Technology)

  • Jitka Studenikova

    (Brno University of Technology)

Abstract

Competitiveness is one of the key conditions of a functional market system. With the passage of time, people changed their understanding of economic systems, and switched from barter to paper money. In the contemporary world, when IT becomes a big part of common life, the electronic money, e-purses, pay pall and other payment systems are used more commonly and have become more important. The payment systems differ one from each other and we can talk about payment instruments market. But what if this market does not work well? The aim of this article is to determine the rules and conditions on the market of payment instruments. The author attempts to recognize the problems on the demand and supply sides. The focus here is on the system of credit cards and direct debit system together with the latest theory of the Tourist Test. The Interchange Fee plays the key role.

Suggested Citation

  • Frantisek Bartes & Jitka Studenikova, 2010. "Payment System Competitiveness," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 5(2), pages 93-101, December.
    • Handle: RePEc:pes:ierequ:v:5:y:2010:i:2:p:93-101
    DOI: 10.12775/EQUIL.2010.027
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    References listed on IDEAS

    as
    1. Farrell Joseph, 2006. "Efficiency and Competition between Payment Instruments," Review of Network Economics, De Gruyter, vol. 5(1), pages 1-19, March.
    2. Jean-Charles Rochet & Jean Tirole, 2002. "Cooperation Among Competitors: Some Economics Of Payment Card Associations," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 549-570, Winter.
    3. Baxter, William F, 1983. "Bank Interchange of Transactional Paper: Legal and Economic Perspectives," Journal of Law and Economics, University of Chicago Press, vol. 26(3), pages 541-588, October.
    4. Michael L. Katz, 2005. "What do we know about interchange fees and what does it mean for public policy? : commentary on Evans and Schmalensee," Proceedings – Payments System Research Conferences, Federal Reserve Bank of Kansas City, issue May, pages 121-137.
    Full references (including those not matched with items on IDEAS)

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