Journal of Financial Market Infrastructures

Competition in bank-provided payment services

Wilko Bolt and David Humphrey


We propose and implement a frontier-based method to assess relative competition in bank-provided payment services. Billion-dollar banks account for around 90% of assets in the US and it is those with around US$4-7 billion in assets that turn out to be both the most and the least competitive in payment services, not the very largest banks.