Journal of Financial Market Infrastructures

Risk.net

Pricing, competition and innovation in retail payment systems: a brief overview

Wilko Bolt

ABSTRACT

This paper looks at competition and innovation in retail payments and their relation to payment pricing and payment efficiency. Payment markets are complex and economic theory cannot always guide us. There is not much consensus on what constitutes an efficient fee structure, and competition between payment networks need not improve economic efficiency.Regulation of retail payment markets should concentrate on the removal of entry barriers in payment markets and providing greater incentives to adopt efficient efficient payment instruments without hampering the innovative potential of the market in the long run. Finally, while the payment landscape is changing rapidly, it is not yet clear which business model is most apt to encourage innovation among competing market players.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: