46 Pages Posted: 27 Oct 2011
Date Written: December 1, 2010
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.
Keywords: retail financial services, electronic payments, pricing, public policy
JEL Classification: L11, G21, D53
Suggested Citation: Suggested Citation
Bolt, Wilko and Chakravorti, Sujit, Digitization of Retail Payment (December 1, 2010). De Nederlandsche Bank Working Paper No. 270. Available at SSRN: https://ssrn.com/abstract=1950148 or http://dx.doi.org/10.2139/ssrn.1950148