PAYMENT NETWORK SCALE ECONOMIES , SEPA , AND CASH REPLACEMENT Wilko Bolt
نویسندگان
چکیده
The goal of SEPA (Single Euro Payments Area) is to facilitate the emergence of a competitive, intra-European market by making cross-border payments as easy as domestic transactions. With crossborder inter-operability for electronic payments, card transactions will increasingly replace cash and checks for all types of payments. Using different methods, we estimate card and other payment network scale economies for Europe. These indicate substantial cost efficiency gains if processing is consolidated across borders rather than "piggybacked" onto existing national operations. Cost reductions likely to induce greater replacement of small value cash transactions are also illustrated. (94 words)
منابع مشابه
SePa, efficiency, and Payment card comPetition
This paper analyzes the welfare implications of creating a Single Euro Payments Area. We study the effects of increased network compatibility and payment scale economies on consumer and merchant card fees and its impact on card usage. In particular, we model competition among debit cards and between debit and credit cards. We show that competitive pressures dampen merchant fees and increase tot...
متن کاملPromoting efficient retail payments in Europe
In this article we first document the evidence showing how an efficient retail payment infrastructure enhances economic performance. We then review the policy tools available to promote efficient retail payments in Europe. We argue that while SEPA is an important policy initiative that harmonizes payment methods across the EU, it alone is not enough. Vigorous competition and consumer protection...
متن کاملGains from diversification on convex combinations: A majorization and stochastic dominance approach
By incorporating both majorization theory and stochastic dominance theory, this paper presents a general theory and a unifying framework for determining the diversification preferences of risk-averse investors and conditions under which they would unanimously judge a particular asset to be superior. In particular, we develop a theory for comparing the preferences of different convex combination...
متن کاملImproved immunogenicity of tetanus toxoid by Brucella abortus S19 LPS adjuvant.
BACKGROUND Adjuvants are used to increase the immunogenicity of new generation vaccines, especially those based on recombinant proteins. Despite immunostimulatory properties, the use of bacterial lipopolysaccharide (LPS) as an adjuvant has been hampered due to its toxicity and pyrogenicity. Brucella abortus LPS is less toxic and has no pyrogenic properties compared to LPS from other gram negati...
متن کاملSteady electrodiffusion in hydrogel-colloid composites: macroscale properties from microscale electrokinetics.
A rigorous microscale electrokinetic model for hydrogel-colloid composites is adopted to compute macroscale profiles of electrolyte concentration, electrostatic potential, and hydrostatic pressure across membranes that separate electrolytes with different concentrations. The membranes are uncharged polymeric hydrogels in which charged spherical colloidal particles are immobilized and randomly d...
متن کامل