Size matters: economies of scale in European payments processing
AbstractThis paper investigates the existence and extent of economies of scale in the European payment processing industry. It is expected that the creation of a Single European Payments Area (SEPA) will spur consolidations and mergers among European payment processors to more fully realize payment economies of scale. We find evidence for the existence of significant economies of scale using data of eight European payment processors during the year 1990-2005. The analysis also reveals that ownership structure is an important factor to explain cost differences across European ACHs.
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Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 155.
Date of creation: Nov 2007
Date of revision:
SEPA; payment scale economies; ACHs; ownership;
Other versions of this item:
- Beijnen, Christine & Bolt, Wilko, 2009. "Size matters: Economies of scale in European payments processing," Journal of Banking & Finance, Elsevier, vol. 33(2), pages 203-210, February.
- Christine Beijnen & Wilko Bolt, 2008. "Size Matters: Economies of Scale in European Payment Processing," FIW Working Paper series 013, FIW.
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
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