Person-to-Person Electronic Funds Transfers: Recent Developments and Policy Issues

42 Pages Posted: 27 Feb 2010 Last revised: 3 Mar 2010

See all articles by Oz Shy

Oz Shy

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Date Written: March 2, 2010

Abstract

The paper investigates the reasons why person-to-person electronic funds transfers are still not very common in the United States compared with practices in many other countries. The paper also describes recent enhancements to online and mobile banking that provide account holders with low-cost interfaces to manage person-to-person electronic funds transfers via automated clearing house (ACH). On the theoretical side, the paper characterizes the critical mass levels needed for payment instruments to become widely adopted. Given the Fed's long-term heavy involvement in check clearing, the paper concludes with policy discussions of whether intervention is needed.

Keywords: Automated Clearing Houses (ACH), Person-To-Person Electronic Funds Transfers, Account-To-Account Transfers, Online Banking, Mobile Banking

JEL Classification: E42, G29, D14

Suggested Citation

Shy, Oz, Person-to-Person Electronic Funds Transfers: Recent Developments and Policy Issues (March 2, 2010). FRB of Boston Public Policy Discussion Paper No. 10-1. Available at SSRN: https://ssrn.com/abstract=1559968 or http://dx.doi.org/10.2139/ssrn.1559968

Oz Shy (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Atlanta ( email )

1000 Peachtree Street N.E.
Atlanta, GA 30309-4470
United States

HOME PAGE: http://https://www.frbatlanta.org/research/economists/shy-oz.aspx

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