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Digitization of Retail Payment

Author Info

Listed author(s):
  • Wilko Bolt
  • Sujit Chakravorti

Abstract

The rapid proliferation of electronic payment media continues to change the way consumers shop and merchants sell goods and services. Many policymakers and economists agree that the digitization of payments is socially beneficial. However, there is considerable debate regarding the optimal pricing of these payment services. Payment markets are complex with many participants engaging in a series of interrelated bilateral relations and transactions. In this article, we survey the recent payment literature, identify the main economic bottlenecks, and study their implications for public policy.

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Paper provided by Netherlands Central Bank, Research Department in its series DNB Working Papers with number 270.

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Date of creation: Dec 2010
Handle: RePEc:dnb:dnbwpp:270
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Keywords: retail financial services; electronic payments; pricing; public policy;

Find related papers by JEL classification:

  • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
  • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
  • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets

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Cited by:

  1. Vania Silva & Esmeralda Ramalho & Carlos Vieira, 2016. "Is EMV adoption changing card payments? Evidence from the European Union," CEFAGE-UE Working Papers 2016_05, University of Evora, CEFAGE-UE (Portugal).
  2. Anneke Kosse & David-Jan Jansen, 2011. "Choosing how to pay: the influence of home country habits," DNB Working Papers 328, Netherlands Central Bank, Research Department.
  3. Kosse, Anneke, 2013. "Do newspaper articles on card fraud affect debit card usage?," Journal of Banking & Finance, Elsevier, vol. 37(12), pages 5382-5391.
  4. Nicole Jonker & Anneke Kosse & Lola Hernández, 2012. "Cash usage in the Netherlands: How much, where, when, who and whenever one wants?," DNB Occasional Studies 1002, Netherlands Central Bank, Research Department.

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