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E‐Money And Payment System Risks

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  • JAMES J. McANDREWS

Abstract

The rapid development of new electronic systems of payment, or e‐money, offers society many potential benefits even as it poses new types of risk for system operators. The risks to which e‐money is most subject–operational, fraud, and legal risk–pose new challenges to payment system risk control. A review of instances of failures in similar systems suggests some useful lessons for the successful development of e‐money. (JEL E42, G2)

Suggested Citation

  • JAMES J. McANDREWS, 1999. "E‐Money And Payment System Risks," Contemporary Economic Policy, Western Economic Association International, vol. 17(3), pages 348-357, July.
    • Handle: RePEc:bla:coecpo:v:17:y:1999:i:3:p:348-357
    DOI: 10.1111/j.1465-7287.1999.tb00687.x
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    References listed on IDEAS

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    1. Kahn, Charles M & Roberds, William, 1998. "Payment System Settlement and Bank Incentives," The Review of Financial Studies, Society for Financial Studies, vol. 11(4), pages 845-870.
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    Cited by:

    1. Naili Farida & Elia Ardyan & Nuryakin, 2016. "Gender Differences in Interest in Using Electronic Money: An Application of Theory Planned Behavior," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 898-903.
    2. Naili Farida & Elia Ardyan & Nuryakin, 2016. "Gender Differences in Interest in Using Electronic Money: An Application of Theory Planned Behavior," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 898-903.
    3. Paul E. Kellogg, 2003. "Evolving operational risk management for retail payments," Emerging Issues, Federal Reserve Bank of Chicago.
    4. Loretta J. Mester, 2000. "The changing nature of the payments system: should new players mean new rules?," Business Review, Federal Reserve Bank of Philadelphia, issue Mar, pages 3-26.
    5. Catharine Lemieux, 2003. "Network vulnerabilities and risks in the retail payment system," Emerging Issues, Federal Reserve Bank of Chicago.

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    More about this item

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • G2 - Financial Economics - - Financial Institutions and Services

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