The New Transnational Payments Law and Global Consumer Trade: Online Platforms as Providers of Private Legal Orders

European Review of Private Law 2016, Volume 24, Issue 2, pp. 223–251.

TILEC Discussion Paper No. 2015-024

26 Pages Posted: 24 Nov 2015 Last revised: 1 May 2016

See all articles by Agnieszka Janczuk-Gorywoda

Agnieszka Janczuk-Gorywoda

Tilburg Law and Economics Center (TILEC); Tilburg University Law School

Date Written: November 1, 2015

Abstract

This article uses the example of one of the best-known global payment systems provided by an online platform, PayPal, to analyze the role of private legal orders in creating new markets beyond jurisdictional borders. It shows that a relatively uniform legal order reduces risks involved in cross-border transactions and in this way enables transnational markets. While transnational law is more easily created by private entities (like online platforms) rather than states, it remains embedded in state laws. The continuous role of state law in shaping transnational private legal orders is guaranteed because the latter operate with the endorsement and support of states. In this way states facilitate globalization. At the same time, the impact of state laws is fragmentary and disintegrates the applicable global private legal framework. Finally, the scattered influence of state laws undermines the protection offered to consumers. This is particularly important, because mutual rights and obligations between transnational private rule-makers, like the online platform PayPal, and their ‘users’ tend to be strongly biased in favour of the former.

Keywords: payments law, transnational law, online platforms, internet intermediaries, peer-to-peer payments, payment service providers, payment systems, PayPayl, e-commerce, consumer protection, two-sided markets, private lawmaking, private rulemaking, globalization

JEL Classification: D18, E42, K12, K33, L81, L86

Suggested Citation

Janczuk-Gorywoda, Agnieszka, The New Transnational Payments Law and Global Consumer Trade: Online Platforms as Providers of Private Legal Orders (November 1, 2015). European Review of Private Law 2016, Volume 24, Issue 2, pp. 223–251., TILEC Discussion Paper No. 2015-024, Available at SSRN: https://ssrn.com/abstract=2694449 or http://dx.doi.org/10.2139/ssrn.2694449

Agnieszka Janczuk-Gorywoda (Contact Author)

Tilburg Law and Economics Center (TILEC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands

Tilburg University Law School ( email )

Tilburg, 5000 LE
Netherlands

HOME PAGE: http://https://www.tilburguniversity.edu/webwijs/show/?uid=a.a.janczuk

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