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Digitization of Retail Payment

  • Wilko Bolt
  • Sujit Chakravorti

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
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Handle: RePEc:dnb:dnbwpp:270
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