Competition and innovation in the consumer e-payments market? considering the demand, supply, and public policy issues

摘要: Significant debate has occurred over the last several decades regarding whether there is adequate competition and innovation in non-recurring consumer payments segment of banking industry. The Department Justice some retailers have sued Visa MasterCard for limiting innovation. There also been a host high profile product “failures” e-payment market place (e.g., e-cash smart card products). Meanwhile, researchers suggested that consumers are irrational unresponsive to marketplace incentives (for instance, see Ausubel (1991)). ; Despite anecdotal reports which imply “there’s something wrong” this market, we find strong, though not yet scientifically conclusive evidence, increasing competition, strong innovation, customers who respond stimuli market. As result, paper argues going forward, public sector involvement payment will be less warranted. Based on analysis unique 1,300 person survey, documentation recent private sector-led developments, Federal Reserve benchmarking study, discusses demand-side, supply-side, protection, policy dimensions influencing Four general lessons may particular interest makers firms.