Emergence of Immediate Funds Transfer as a General-Purpose Means of Payment
16 Pages Posted: 15 Nov 2011
Date Written: July 28, 2011
Immediate funds transfer (IFT) is a highly convenient, certain, secure, and economical means of payment using bank money. IFT is not available in the U.S. banking system, except for large-value business payments, interbank transfers, and specialized financial market transactions. This article examines the successful experience with IFT in Mexico, South Africa, Switzerland, and the UK and concludes that payment system governance is the principal barrier to IFT innovation in the U.S.
Keywords: financial economics, market structure, public goods
JEL Classification: G00, H41, D40
Suggested Citation: Suggested Citation