Balancing Cooperation and Competition in Retail Payment Systems: Lessons from Latin America Case Studies

The World Bank, Financial Infrastructure Series, Payment Systems Policy and Research

270 Pages Posted: 9 Oct 2009

See all articles by Mario Guadamillas

Mario Guadamillas

World Bank

Massimo Cirasino

affiliation not provided to SSRN

Constantinos Stephanou

BIS/Financial Stability Board

Sergio Gorjon

affiliation not provided to SSRN

Tito Cordella

World Bank

Jane C. Hwang

affiliation not provided to SSRN

Victoria Vanasco

CREi ; Barcelona GSE; CEPR

Sara Castellanos

Banco de México

Ricardo Medina

affiliation not provided to SSRN

alberto mendoza

affiliation not provided to SSRN

Jose L. Negrin

Banco de Mexico

Jean-Charles Rochet

Swiss Finance Institute; University of Geneva - Geneva Finance Research Institute (GFRI); University of Zurich - Swiss Banking Institute (ISB)

Francisco Solis

Bank of Mexico

Date Written: November 28, 2008

Abstract

"Balancing Cooperation and Competition in Retail Payment Systems: Lessons from Latin America Case Studies" presents the findings of four case studies in Latin America (Argentina, Brazil, Colombia and Mexico) that have explored the issue of cooperation and competition in different retail payments markets, such as the automated clearinghouse (ACH) and cards markets. The study includes an overview of the main issues and policy guidelines derived from the case studies but also from the accumulated expertise of the Bank around the world and available literature on the topic. Thus, the study defines a conceptual framework to better identify the issues involved and propose policy guidelines for the authorities and stakeholders to consider in advacing reforms in the area of retail payment systems and achieve the right balance for a cooperative infrastructure development among market competitors.

Keywords: retail payment, payment system, Brazil, Argentina, Colombia, Mexico, interchange fee, competition, payment instrument, clearing, settlement, automated clearing house, credit card, debit card, interoperability, network externalities, ATM, POS, oversight, central bank, financial regulation

JEL Classification: D2, D4, G1, G2

Suggested Citation

Guadamillas, Mario and Cirasino, Massimo and Stephanou, Constantinos and Gorjon, Sergio and Cordella, Tito and Hwang, Jane C. and Vanasco, Victoria and Castellanos, Sara and Medina, Ricardo and mendoza, alberto and Negrin, José Luis and Rochet, Jean-Charles and Solis, Francisco, Balancing Cooperation and Competition in Retail Payment Systems: Lessons from Latin America Case Studies (November 28, 2008). The World Bank, Financial Infrastructure Series, Payment Systems Policy and Research. Available at SSRN: https://ssrn.com/abstract=1485141

Mario Guadamillas (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Massimo Cirasino

affiliation not provided to SSRN ( email )

Constantinos Stephanou

BIS/Financial Stability Board ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Sergio Gorjon

affiliation not provided to SSRN ( email )

Tito Cordella

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-0043 (Phone)

Jane C. Hwang

affiliation not provided to SSRN ( email )

Victoria Vanasco

CREi ( email )

RAMON TRIAS FARGAS 25-27
Barcelona, 08005
Spain
+34935422598 (Phone)

HOME PAGE: http://https://sites.google.com/site/vicovanasco

Barcelona GSE ( email )

Ramon Trias Fargas, 25-27
Barcelona, Barcelona 08005
Spain

CEPR ( email )

London
United Kingdom

Sara Castellanos

Banco de México ( email )

Ricardo Medina

affiliation not provided to SSRN ( email )

Alberto Mendoza

affiliation not provided to SSRN ( email )

José Luis Negrin

Banco de Mexico ( email )

Av. 5 de Mayo 18
Piso 4
Col. Centro 06059, 06059
Mexico

Jean-Charles Rochet

Swiss Finance Institute ( email )

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

University of Geneva - Geneva Finance Research Institute (GFRI) ( email )

40 Boulevard du Pont d'Arve
Geneva 4, Geneva 1211
Switzerland

University of Zurich - Swiss Banking Institute (ISB) ( email )

Plattenstrasse 14
CH-8032 Zurich, Zurich 8032
Switzerland

Francisco Solis

Bank of Mexico ( email )

Av. 5 de Mayo 18
Piso 4
Mexico City, 06059
Mexico

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