nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2016‒12‒04
fourteen papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. Financial inclusion and consumer payment choice By Cole, Allison; Greene, Claire
  2. The 2014 survey of consumer payment choice: technical appendix By Angrisani, Marco; Foster, Kevin; Hitczenko, Marcin
  3. Decentralized Clearing in Financial Networks (RM/16/005-revised-) By Csoka, Péter; Herings, P. Jean-Jacques
  4. Évolution de l'itinérance mobile internationale By Frédéric Bourassa; Sam Paltridge; Verena Weber; Yuki Yokomori; Dimitri Ypsilanti
  5. Selecting and Designing European ICT Innovation Policies By Andrea Renda
  6. Dynamic Topic Modelling for Cryptocurrency Community Forums By Marco Linton; Wolfgang K. Härdle; Ernie Gin Swee Teo; Elisabeth Bommes; Cathy Yi-Hsuan Chen
  7. Herausforderungen der Digitalisierung für die Zukunft der Arbeitswelt By Arnold, Daniel; Arntz, Melanie; Gregory, Terry; Steffes, Susanne; Zierahn, Ulrich
  8. eHealth: Grundlagen der Digitalen Gesundheitswirtschaft und Leitmarktperspektiven By Paul J.J. Welfens
  9. Bitcoin 1, Bitcoin 2, ... : An experiment in privately issued outside monies By Garratt, Rodney; Wallace, Neil
  10. Digital Colombia: Maximizing the global internet and data for sustainable and inclusive growth By Joshua P. Meltzer; Camila Pérez
  11. The Effect of Warning Messages on Secure Behaviour Online: Results from a Lab Experiment By Nuria Rodríguez-Priego; René van Bavel
  12. International Banking and Transmission of the 1931 Financial Crisis By Accominotti, Olivier
  13. Guidelines for public administrations on location privacy: European Union Location Framework By Leda Bargiotti; Inge Gielis; Bram Verdegem; Pieter Breyne; Francesco Pignatelli; Paul Smits; Ray Boguslawski
  14. We develop a conceptual framework that allows us to define the sharing economy and its close cousins and understand its sudden rise from an economic-historic perspective. We then assess the sharing economy platforms in terms of the economic, social and environmental impacts. We end with reflections on current regulations and future alternatives, and suggest a number of future research questions. By Koen Frenken

  1. By: Cole, Allison (Federal Reserve Bank of Boston); Greene, Claire (Federal Reserve Bank of Boston)
    Abstract: This report examines similarities and differences among three groups of consumers: those without a checking or savings account (unbanked), bank account adopters who have used alternative financial services (AFS) in the past 12 months (underbanked), and bank account adopters who did not use AFS in the past 12 months (fully banked). Consumers in the three groups have different demographic characteristics, income, and payment behaviors: •The payment behavior of the underbanked is similar to that of the fully banked. •Unbanked consumers make fewer payments per month than the fully banked and the underbanked. •Fewer than half of the unbanked know their credit scores, while about 85 percent of the underbanked and the fully banked know theirs. •Both unbanked and underbanked consumers are significantly more likely than fully banked consumers to own a general purpose reloadable (GPR) prepaid card. We find no evidence that consumers are prevented from opening a bank account; many cite personal preferences and cost as reasons for choosing to be unbanked. These preferences are likely related to income constraints.
    Keywords: Unbanked; underbanked; financial inclusion; consumer payment choice; consumer behavior; consumer preferences; Survey of Consumer Payment Choice
    JEL: D12 G21
    Date: 2016–10–17
  2. By: Angrisani, Marco (University of Southern California); Foster, Kevin (Federal Reserve Bank of Boston); Hitczenko, Marcin (Federal Reserve Bank of Boston)
    Abstract: This document serves as the technical appendix to the 2014 Survey of Consumer Payment Choice administered by the RAND Corporation. The Survey of Consumer Payment Choice (SCPC) is an annual study designed primarily to collect data on attitudes to and use of various payment instruments by consumers over the age of 18 in the United States. The main report, which introduces the survey and discusses the principal economic results, can be found at In this data report, we detail the technical aspects of the survey design, implementation, and analysis.
    JEL: D12 D14 E4
    Date: 2016–07–01
  3. By: Csoka, Péter (corvinus university of budapest); Herings, P. Jean-Jacques (General Economics 1 (Micro))
    Abstract: We consider a situation in which agents have mutual claims on each other, summarized in a liability matrix. Agents' assets might be insufficient to satisfy their liabilities leading to defaults. In case of default, bankruptcy rules are used to specify the way agents are going to be rationed. A clearing payment matrix is a payment matrix consistent with the prevailing bankruptcy rules that satisisfies limited liability and priority of creditors. Since clearing payment matrices and the corresponding values of equity are not uniquely determined, we provide bounds on the possible levels equity can take. Unlike the existing literature, which studies centralized clearing procedures, we introduce a large class of decentralized clearing processes. We show the convergence of any such process in finitely many iterations to the least clearing payment matrix. When the unit of account is sufficiently small, all decentralized clearing processes lead essentially to the same value of equity as a centralized clearing procedure. As a policy implication, it is not necessary to collect and process all the sensitive data of all the agents simultaneously and run a centralized clearing procedure.
    JEL: C71 G10
    Date: 2016
  4. By: Frédéric Bourassa (OCDE); Sam Paltridge (OCDE); Verena Weber (OCDE); Yuki Yokomori (OCDE); Dimitri Ypsilanti
    Abstract: Le Conseil a adopté le 16 février 2012 la Recommandation du Conseil sur les services d’itinérance mobile internationale qui met en avant une série de mesures pour assurer une concurrence efficace, sensibiliser et protéger les consommateurs et instaurer un juste niveau de prix sur les marchés des services d’itinérance mobile internationale. Le présent rapport vise à donner une vue d’ensemble des progrès réalisés par les Membres et Partenaires dans la mise en Å“uvre de la Recommandation et à déterminer si des actions nouvelles sont nécessaires en ce domaine.
    Date: 2016–04–28
  5. By: Andrea Renda
    Abstract: This report analyses the peculiarities of innovation in Information and Communications Technologies (ICT), an ecosystem composed of various layers: from infrastructure to applications and content, and including end users. The report observes that innovation is becoming more open and collaborative in all layers, with various degrees of R&D intensity (greater at lower, physical layers); a prevalence of system goods with platforms and complementors mostly competing “for†rather than “in†the market; pervasive network effects coupled with relatively low entry barriers; short product life-cycles; and a high degree of co-evolution and co-dependency across and between layers. The nature of the ICT ecosystem determines a growing need for flexible, adaptive regulation, and the adoption of new policy instruments such as prizes and challenges. Policies should aim to create an environment favourable to the development of new, welfare-enhancing business models and avoid hindering the entrance of new players
    Keywords: Innovation, ICT, Commpetitiveness, growth, industry, digital economy
    JEL: L63 L86 L88
    Date: 2016–11
  6. By: Marco Linton; Wolfgang K. Härdle; Ernie Gin Swee Teo; Elisabeth Bommes; Cathy Yi-Hsuan Chen
    Abstract: Cryptocurrencies are more and more used in ocial cash ows and exchange of goods. Bitcoin and the underlying blockchain technology have been looked at by big companies that are adopting and investing in this technology. The CRIX Index of cryptocurrencies indicates a wider acceptance of cryptos. One reason for its prosperity certainly being a security aspect, since the underlying network of cryptos is decentralized. It is also unregulated and highly volatile, making the risk assessment at any given moment dicult. In message boards one nds a huge source of information in the form of unstructured text written by e.g. Bitcoin developers and investors. We collect from a popular crypto currency message board texts, user information and associated time stamps. We then provide an indicator for fraudulent schemes. This indicator is constructed using dynamic topic modelling, text mining and unsupervised machine learning. We study how opinions and the evolution of topics are connected with big events in the cryptocurrency universe. Furthermore, the predictive power of these techniques are investigated, comparing the results to known events in the cryptocurrency space. We also test hypothesis of self-fulling prophecies and herding behaviour using the results.
    JEL: C19 G10
    Date: 2016–11
  7. By: Arnold, Daniel; Arntz, Melanie; Gregory, Terry; Steffes, Susanne; Zierahn, Ulrich
    Abstract: Der technologische Wandel erlaubt es zunehmend, Wertschöpfungsprozesse automatisiert und digital gestützt zu erbringen. Diese Digitalisierung und Automatisierung ist im Produktionsbereich beispielsweise gekennzeichnet durch sich zunehmend selbststeuernde Anlagen und Roboter bis hin zu vollautomatisierten und mit anderen vor- und nachgelagerten Geschäftsbereichen vernetzten "Smart Factories" (Industrie 4.0). Im Dienstleistungsbereich sorgen analog intelligente Software und Algorithmen mit Hilfe großer Datenmengen und Internetschnittstellen für die Digitalisierung und Automatisierung von Geschäftsprozessen. Zum Einsatz kommen etwa Analysetools mit Big Data, Cloud-Computing-Systeme oder Online-Plattformen. Vor dem Hintergrund dieser technologischen Entwicklungen - oftmals Technologien der 4. Industriellen Revolution genannt - werden in der öffentlichen Debatte vermehrt Befürchtungen laut, dass in Zukunft viele Arbeitsplätze überflüssig werden könnten. Dieses Szenario einer "technologischen Arbeitslosigkeit" wird von Studien aus den USA gestützt, nach denen jeder zweite Arbeitsplatz gefährdet ist (Frey und Osborne, 2013). Für Politik und Gesellschaft drängen sich damit eine Reihe von Fragen auf: Führt die Automatisierung und Digitalisierung tatsächlich zum Abbau von Arbeitsplätzen? Welche Arbeitsplätze sind gefährdet? Wie verändern sich die Arbeitsprozesse und -inhalte im Zuge des Wandels? Wie verändern sich Qualifikations- und Kompetenzanforderungen? Besteht Anpassungsbedarf zur Sicherung der Beschäftigungsfähigkeit von Arbeitnehmern/-innen? Dieser Policy Brief fasst zentrale Erkenntnisse und Einschätzungen aus Sicht der Wissenschaft und den am ZEW entstandenen Arbeiten zusammen.
    Abstract: Technological change is increasingly turning the value chain into an automated and digitalised process. The digitalisation and automation of manufacturing processes is characterised by the use of increasingly autonomous systems and robots, as well as fully automated smart factories (Industry 4.0), which are interconnected with upstream and downstream business divisions. Similarly, service providers have been increasingly using intelligent software and algorithms which help digitalise and automate business processes on the basis of large data volumes and web interfaces. To this effect, businesses make use of big data analysis software, cloud computing systems or online platforms, to name but a few examples. In view of these technological developments, or so-called technologies of the fourth industrial revolution, many concerns have been voiced in the public debate about how numerous jobs might become redundant in the future. This scenario of a "technological unemployment" is supported by U.S. studies, which suggest that 50 per cent of jobs are at risk of being replaced by new digital technologies (Frey and Osborne, 2013). This raises a number of questions among decision-makers and the general public: Is it true that automation and digitalisation will result in major job losses? And if so, which jobs are at risk? In what way are technological developments changing work processes and contents? How does this affect qualification and competency requirements? Is it necessary to carry out adjustment measures to guarantee job security? This policy brief summarises key findings of studies and scientifically grounded assessments by ZEW researchers.
    Date: 2016
  8. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: The expansion of the digital health economy represents a strategic challenge for both the wider economy and society of the Federal Republic of Germany. In this context, economic policy actors need to set adequate framework conditions, such that competition in the health system, i.e. the interaction of statutory and private health insurance providers, will lead to optimal innovation dynamics and efficiency gains. Statutory and private health insurance funds each follow their own strategies. Amongst other strategies, private insurance providers make use of the possibility that firms are also involved in the area of occupational health management. There are, however, considerable obstacles to a digital modernization of the health sector, while Germany was also relatively late in introducing a digital health card. Among the significant benefits, for patients, insurers and care providers, are innovations in the area of digital check-ups and preventative care, telemedicine, digitalized after-care and an optimization of billing processes. Germany – in an EU context – ranks mid-table with regard to eHealth applications in the hospital industry, however, on the basis of a good positioning in terms of ICT and the large domestic market, Germany has the potential to become both a leading actor and a leading market in the medium term. From an economic perspective, eHealth progress can help to curb the rise of insurance contributions – digital advances have cost dampening effects, patient benefits and positive effects in the competitive process. Non-uniform health economy standards in EU countries largely prevent national software solutions and other eHealth concepts from easily being scaled-up, i.e. exported. Here, action by the EU is clearly required; including in the promotion and support of cooperation projects.
    Keywords: Health, Insurance, Innovation, Research
    JEL: I1 I18 O3
    Date: 2016–10
  9. By: Garratt, Rodney; Wallace, Neil
    Abstract: The value of Bitcoin depends upon self-fulfilling beliefs that are hard to pin down. We demonstrate this for the case where Bitcoin is the only form of money in the economy and then generalize the message to the case of multiple Bitcoin clones and/or a competing sovereign currency. Some aspects of the indeterminacy we describe would no longer hold if Bitcoin were an interesting-bearing object.
    Keywords: Social and Behavioral Sciences, Virtual Currency, Bitcoin, Indeterminancy, Exchange Rates
    Date: 2016–10–01
  10. By: Joshua P. Meltzer; Camila Pérez
    Abstract: Durante la última década, Colombia ha experimentado un fuerte crecimiento económico y una significativa reducción de los índices de pobreza. Al mismo tiempo, el gobierno se ha embarcado en un ambicioso plan para aumentar la incorporación y uso de las tecnologías digitales, ampliar el acceso a Internet, promover el desarrollo de contenido local en línea, haciendo hincapié en el uso de Internet y datos por parte del gobierno para mejorar la prestación de servicios, la transparencia y el buen gobierno. A medida que el Internet se hace global, los datos se convierten en un factor cada vez más importante de crecimiento económico. Los flujos de datos se estima que contribuyeron $ 7.8 billones de dólares a la actividad económica mundial durante la última década, aproximadamente el 10 por ciento del PIB mundial. Por otra parte, la economía de Internet podría duplicarse para el G-20 entre 2010 a 2020, y generar empleo para 32 millones de trabajadores en todo el mundo. El uso generalizado y el impacto del Internet en todos los sectores económicos significa que el Internet y los datos se entienden mejor como tecnologías de propósito general (TPG) -que tienen el potencial de cambiar la forma de las economías y aumentar la productividad. Otras TPG incluyen: los trenes, motores de combustión interna, y la electricidad. Profundizar y ampliar la capacidad del gobierno, las empresas y las personas para utilizar las tecnologías digitales será un determinante clave de la prosperidad económica. De hecho, la maximización del uso de Internet y datos a través de la economía de Colombia proporcionará una base para el crecimiento sostenible e incluyente en el siglo XXI. Este informe analiza la forma en la cual los flujos de datos y el Internet están mejorando la productividad, la eficiencia y la competitividad de la economía colombiana. Por ejemplo, las empresas están utilizando el acceso a los servicios digitales, como la computación en nube para reducir los costos de las Tecnologías de la Información (TI) y aumentar así su competitividad en los mercados nacionales y mundiales. Las plataformas de Internet están proporcionando a las pequeñas y medianas empresas en Colombia acceso a los consumidores a nivel mundial y ofrecen una oportunidad para ampliar la participación de los colombianos en el comercio internacional. El Internet también está aumentando la importancia de los servicios en el comercio internacional. El comercio de servicios prestables de forma digital, es decir, servicios que pueden ser proporcionados en línea, ya representan más del 12 por ciento de las exportaciones totales de Colombia, y aumenta a más del 17,5 por ciento una vez que los servicios digitales incorporan a las cuentas externas del país. Las empresas también están usando el Internet y los datos para ofrecer servicios digitales como parte de las ofertas más tradicionales de bienes, lo que aumenta su valor total. Esto incluye el uso de sensores y análisis de datos para rastrear los productos agrícolas y mejorar la eficiencia de las operaciones de minería y manufactura.
    Keywords: Economía Digital, Tecnologías de la Información, Datos, Crecimiento Económico, Servicios Digitales, Servicios Financieros, Emprendimiento, Comercio Electrónico, Comercio Internacional, Colombia
    JEL: L86 L81 G14 L15 D83 F13
    Date: 2016–10–31
  11. By: Nuria Rodríguez-Priego (European Commission - JRC); René van Bavel (European Commission - JRC)
    Abstract: Objective: The level of online security is affected by technical factors, natural events and human behaviour. The purpose of this research is to contribute to policy actions that lead consumers to increase online security. It tests several warning messages based on the literature of behavioural insights that may persuade consumers to behave more securely while online, thus diminishing their chances of suffering a cyber-attack. Methods: A lab experiment was conducted in Spain (n=600). Participants had to make some online shopping decisions, and were assigned a quantity of money. The incentive for participating in the experiment depended on how secure their behaviour was during the purchasing process as regards: choosing a safe connection, providing less information during the sign-up process, choosing a strong password, choosing a trusted vendor, and logging-out. Each decision they made could increase their chances of suffering a cyber-attack at the end of the experiment and losing part of the incentive if it was less safe. Other factors that may affect secure behaviour were measured through a pre-purchase and a post-purchase questionnaire. Findings: Results show that long security messages and messages accompanied by a male anthropomorphic character will lead consumers to disclose less personal information when signing-up to an e-commerce website. A loss-framed security message will make subjects choose a trusted vendor over an untrusted one, to log-out after purchasing on an e-commerce website. It will also make them behave more securely, if cyber security is treated as a composite indicator built on three behavioural measures (use trusted sites, use secure passwords and log-out of sites after finishing our session). None of the treatments was effective in making subjects choose a safe connection, or a stronger password. Conclusions: The design of security messages has an effect on security behaviour. The policy implications are that security awareness messages should be carefully designed and piloted before they are implemented. The lack of effect of the messages on choosing a stronger password should be further examined. This result may be related to consumers lacking information on what a strong password is, or lacking knowledge that could help them to relate stronger passwords with more secure behaviour online.
    Keywords: cybersecurity, nudging, online behaviour, behavioural economics
    Date: 2016–11
  12. By: Accominotti, Olivier
    Abstract: In May-July 1931, a series of financial panics shook Central Europe before spreading to the rest of the world. This paper explores how the 1931 Central European crisis propagated to the London and New York financial centers; it also examines the role of cross-border banking linkages in international crisis transmission. Using archival bank-level data, I document US and British banks' asset-side exposure to the crisis region. The Continental crisis disturbed few US banks but endangered several British financial institutions and triggered severe stress in the London money market. Central European credits were mostly held by large and diversified commercial banks in the United States and by small and geographically specialized financial institutions in Britain. Differences in the market structure of the trade finance industry explain why the 1931 Central European crisis infected London banks but not New York banks.
    Keywords: International Contagion; Cross-Border Banking; Trade Finance; 1931 Crisis
    JEL: F34 G21 N22 N24
    Date: 2016–11
  13. By: Leda Bargiotti (European Commission – DG DIGIT); Inge Gielis; Bram Verdegem; Pieter Breyne; Francesco Pignatelli (European Commission - JRC); Paul Smits (European Commission - JRC); Ray Boguslawski (European Commission - JRC)
    Abstract: Public administrations increasingly use location data to deliver public services such as location-enabled tools, apps for tourists, toll collection services or cadastral web applications. Location data such as addresses, GPS coordinates or camera images is key to many public services and can also be linked to all sorts of other data, generating new information that was not available before. Despite the increase consumption of location data, its potential to reveal personal information is often underestimated, especially in comparison to other sensitive data, for instance in the financial and health domains. Location data not only says where an individual is, it also says who he/she is and what his/her interests and preferences are. Therefore, location data privacy is of paramount importance for public administrations dealing with location data. While location data privacy has many aspects in common with general data protection principles, it also has unique characteristics that require specific guidance. The goal of this guideline is therefore twofold: to outline the key obligations that public administrations should comply with when handling personal location data and raising awareness about the importance of location data privacy, highlighting key implications and risks associated with the processing of location data. It does so by guiding the reader through concrete scenarios that public administrations might face when processing personal location data and provides a set of effective and practical recommendations that can help ensuring the adequate protection of personal location data.
    Keywords: Location data privacy, data protection, guidelines
    Date: 2016–11
  14. By: Koen Frenken
    Keywords: sharing economy
    Date: 2016–11

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