Classifying Payment Instruments: A Matryoshka Approach

Communications and Strategies, No. 79, p. 73-94, 2010

22 Pages Posted: 16 Apr 2011

See all articles by Valérie-Anne Bleyen

Valérie-Anne Bleyen

Vrije Universiteit Brussel (VUB)

Leo Van Hove

Vrije Universiteit Brussel (VUB)

Monika Hartmann

European Central Bank (ECB)

Multiple version iconThere are 2 versions of this paper

Date Written: June 15, 2010

Abstract

The payments market is a dynamic market. Novel payment instruments are being launched at a fast clip. Unfortunately, a classification that adequately distinguishes all possible payment instruments by their most relevant characteristics is missing in the literature. In this paper a classification system is introduced that – just like a matryoshka doll – consists of multiple nested layers. The classification has five layers, comprising the type of money, the core payment mechanism, the channels and networks involved, the form factor and authentication device used, and, ultimately, seven generic payment methods. The idea is that a specific combination of features from each of the five layers ultimately defines a real-life payment instrument. Besides its comprehensiveness, the added value of the classification is that it reveals the true nature of a payment instrument, which on closer scrutiny may not be all that novel.

Keywords: Payment instruments, classification, money, technology

JEL Classification: O00

Suggested Citation

Bleyen, Valérie-Anne and Van Hove, Leo and Hartmann, Monika, Classifying Payment Instruments: A Matryoshka Approach (June 15, 2010). Communications and Strategies, No. 79, p. 73-94, 2010, Available at SSRN: https://ssrn.com/abstract=1810889

Valérie-Anne Bleyen (Contact Author)

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium
003226292193 (Phone)
003226292060 (Fax)

HOME PAGE: http://www.vub.ac.be

Leo Van Hove

Vrije Universiteit Brussel (VUB) ( email )

Department of Applied Economics (APEC)
Pleinlaan 5
Brussels, B-1050
Belgium
+32 2 614 84 49 (Phone)

HOME PAGE: http://research.vub.ac.be/applied-economics/members

Monika Hartmann

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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