Retail Payments in the Netherlands: some Facts and Some Theory
AbstractIn the first part of this article we present a brief description of Dutch retail payment systems in terms of market structure and performance, usage of payment instruments, and corresponding tariff structures. Although it is con-cluded that the Dutch retail payment market as a whole showed strong dynamic potential in terms of product and process innovations over the last decade, some parts of the payment services industry have recently attracted controversy and antitrust scrutiny. These market imperfections touch upon transparancy of pricing consumer payment services, infrastructural arrangements, organisation of the Dutch debit card network, and accessibility of retail payment systems. In the second part of this article, these imperfections will be studied within a theoretic framework. Since payment activities pose complex multiplayer problems, industrial organization type of models may typically prove useful here, leading to new insights and relevant policy conclusions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Netherlands Central Bank, Research Department in its series WO Research Memoranda (discontinued) with number 722.
Date of creation: 2003
Date of revision:
retail payments; payment instruments; pricing; competition; network effects;
Find related papers by JEL classification:
- G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
- L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James J. McAndrews, 1997. "Network issues and payment systems," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 15-25.
- 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 541-88, October.
- Damme, E.E.C. van & Verboven, F.L., 2001. "Het nieuwe toezicht op ondernemingen: Economische aspecten van marktwerking en regulering," Open Access publications from Tilburg University urn:nbn:nl:ui:12-88375, Tilburg University.
- Shy, Oz & Tarkka, Juha, 1998.
"The Market for Electronic Cash Cards,"
Research Discussion Papers
21/1998, Bank of Finland.
- David Humphrey & Moshe Kim & Bent Vale, 1998.
"Realizing the gains from electronic payments: costs, pricing, and payment choice,"
586, Federal Reserve Bank of Chicago.
- Humphrey, David B & Kim, Moshe & Vale, Bent, 2001. "Realizing the Gains from Electronic Payments: Costs, Pricing, and Payment Choice," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(2), pages 216-34, May.
- Schmalensee, Richard, 2002.
"Payment Systems and Interchange Fees,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 50(2), pages 103-22, June.
- William R. Emmons, 1996. "Price stability and the efficiency of the retail payments system," Review, Federal Reserve Bank of St. Louis, issue Sep, pages 49-61.
- Humphrey, David B. & Keppler, Robert H. & Montes-Negret, Fernando, 1997. "Cost recovery and pricing of payment services," Policy Research Working Paper Series 1833, The World Bank.
- Jean-Charles Rochet & Jean Triole, 2002.
"Platform Competition in Two Sided Markets,"
FMG Discussion Papers
dp409, Financial Markets Group.
- Gans Joshua S & King Stephen P, 2003. "The Neutrality of Interchange Fees in Payment Systems," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(1), pages 1-18, January.
- David Humphrey & Lawrence Pulley & Jukka Vesala, 2000. "The Check's in the Mail: Why the United States Lags in the Adoption of Cost-Saving Electronic Payments," Journal of Financial Services Research, Springer, vol. 17(1), pages 17-39, February.
- Wilko Bolt & Nicole Jonker & Corry van Renselaar, 2008.
"Incentives at the counter: An empirical analysis of surcharging card payment and payment behaviour in the Netherlands,"
DNB Working Papers
196, Netherlands Central Bank, Research Department.
- Bolt, Wilko & Jonker, Nicole & van Renselaar, Corry, 2010. "Incentives at the counter: An empirical analysis of surcharging card payments and payment behaviour in the Netherlands," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1738-1744, August.
- Wilko Bolt & Sujit Chakravorti, 2008.
"Consumer choice and merchant acceptance of payment media,"
Working Paper Series
WP-08-11, Federal Reserve Bank of Chicago.
- Wilko Bolt & Sujit Chakravorti, 2008. "Consumer Choice and Merchant Acceptance of Payment Media," DNB Working Papers 197, Netherlands Central Bank, Research Department.
- Willem Buiter, 2009.
"Negative Nominal Interest Rates: Three ways to overcome the zero lower bound,"
FMG Discussion Papers
dp636, Financial Markets Group.
- Buiter, Willem H., 2009. "Negative nominal interest rates: Three ways to overcome the zero lower bound," The North American Journal of Economics and Finance, Elsevier, vol. 20(3), pages 213-238, December.
- Willem H. Buiter, 2009. "Negative nominal interest rates: three ways to overcome the zero lower bound," LSE Research Online Documents on Economics 29297, London School of Economics and Political Science, LSE Library.
- Willem H. Buiter, 2009. "Negative Nominal Interest Rates: Three ways to overcome the zero lower bound," NBER Working Papers 15118, National Bureau of Economic Research, Inc.
- Buiter, Willem H., 2009. "Negative Nominal Interest Rates: Three ways to overcome the zero lower bound," CEPR Discussion Papers 7346, C.E.P.R. Discussion Papers.
- Donze, Jocelyn & Dubec, Isabelle, 2006.
"The role of interchange fees in ATM networks,"
International Journal of Industrial Organization,
Elsevier, vol. 24(1), pages 29-43, January.
- Nicole Jonker, 2005. "Payment Instruments as Perceived by Consumers - a Public Survey," DNB Working Papers 053, Netherlands Central Bank, Research Department.
- Kari Kemppainen, 2004. "Competition and regulation in European retail payment systems," Microeconomics 0404008, EconWPA.
- Wilko Bolt & Alexander F. Tieman, 2004.
"Skewed Pricing in Two-Sided Markets: An IO approach,"
DNB Working Papers
013, Netherlands Central Bank, Research Department.
- Wilko Bolt & Alexander F Tieman, 2005. "Skewed Pricing in Two-Sided Markets: An IO approach," Money Macro and Finance (MMF) Research Group Conference 2005 75, Money Macro and Finance Research Group.
- Fumiko Hayashi, 2004.
"A puzzle of card payment pricing : why are merchants still accepting card payments?,"
Payments System Research Working Paper
PSR WP 04-02, Federal Reserve Bank of Kansas City.
- Hayashi Fumiko, 2006. "A Puzzle of Card Payment Pricing: Why Are Merchants Still Accepting Card Payments?," Review of Network Economics, De Gruyter, vol. 5(1), pages 1-31, March.
- Wilko Bolt & Heiko Schmiedel, 2010.
"SEPA, Efficiency, and Payment Card Competition,"
DNB Working Papers
239, Netherlands Central Bank, Research Department.
- W. Bolt & A.F. Tieman, 2003. "Pricing Debit Card Payments Services: An IO approach," WO Research Memoranda (discontinued) 735, Netherlands Central Bank, Research Department.
- VAN HOVE, Leo, 2007. "Central Banks and Payment Instruments: a Serious Case of Schizophrenia," MPRA Paper 5281, University Library of Munich, Germany.
- Alexander F. Tieman & Wilko Bolt, 2003. "Pricing Debit Card Payment Services," IMF Working Papers 03/202, International Monetary Fund.
- Nicole Jonker & Thijs Kettenis, 2007. "Explaining cash usage in the Netherlands: the effect of electronic payment instruments," DNB Working Papers 136, Netherlands Central Bank, Research Department.
- Nicole Jonker, 2007. "Payment Instruments as Perceived by Consumers – Results from a Household Survey," De Economist, Springer, vol. 155(3), pages 271-303, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rob Vet).
If references are entirely missing, you can add them using this form.