nep-pay New Economics Papers
on Payment Systems and Financial Technology
Issue of 2017‒04‒23
25 papers chosen by
Bernardo Bátiz-Lazo
Bangor University

  1. El nacimiento de la tarjeta de credito bancaria an Mexico y Espana, 1966-1975 By Batiz-lazo, Bernardo; del Angel, Gustavo
  2. Fintech: Revolution or Evolution? By Harker, Patrick T.
  3. Fintech, Regulatory Arbitrage, and the Rise of Shadow Banks By Buchak, Greg; Matvos, Gregor; Piskorski, Tomasz; Seru, Amit
  4. New Perspectives on Consumer Behavior in Credit and Payments Markets By Berlin, Mitchell
  6. The Digital Privacy Paradox: Small Money, Small Costs, Small Talk By Athey, Susan; Catalini, Christian; Tucker, Catherin E.
  7. Prospects for blockchain-based settlement frameworks as a resolution to the threat of de-risking to Caribbean financial systems By Williams, Robert Crane
  8. From start-up to scale-up: examining public policies for the financing of high-growth ventures By Gilles Duruflé; Thomas Hellmann; Karen E. Wilson
  9. Policies to expand digital skills for the machine age By John P. Martin
  10. Regulating 'platform power' By Orla Lynskey
  11. The Value of Flexible Work: Evidence from Uber Drivers By M. Keith Chen; Judith A. Chevalier; Peter E. Rossi; Emily Oehlsen
  12. The comparative exploration of mobile money services in inclusive development By Simplice Asongu; Ndemaze Asongu
  13. Las transferencias compensadas por ACH Colombia: Un análisis desde la perspectiva de topología de redes By Fabio Ortega; Carlos León
  14. Do Digital Currencies Pose a Threat to Sovereign Currencies and Central Banks? By Daniel Heller
  15. Rational and Emotional Messages Amid Online News Exposure of the Brand By Boonchai Hongcharu
  16. Technology-driven information sharing and conditional financial development in Africa By Simplice Asongu; John C. Anyanwu; Vanessa S. Tchamyou
  17. Coordination Frictions in Venture Capital Syndicates By Ramana Nanda; Matthew Rhodes-Kropf
  18. Private Money Creation with Safe Assets and Term Premia By Sebastian Infante
  19. Online Supervision of Teachers in the Expanding K-12 Online Teaching World By Joy Kutaka-Kennedy
  20. Modelo de acceso y uso de telefonia en un contexto de incertidumbre en los ingresos By Kristian Lopez
  21. Una Aproximacion a las Implicancias en las Decisiones de Inversion en Proyectos de Expansion de la Red de Telefonia Fija By Victor Torres
  22. Empleando la telefonia movil para promover la inclusion financiera en el Peru: el caso del dinero electronico. By Manuel Gavilano; Jose Romero
  23. Adapting Evaluations of Alternative Payment Models to a Changing Environment By Thomas W. Grannemann; Randall S. Brown
  24. Defining the Relevant Market in the Digital Platform Industry (Japanese) By KAWAHAMA Noboru; TAKEDA Kuninobu
  25. How Instant Payment Systems can change our world? By Robert Taczmann

  1. By: Batiz-lazo, Bernardo; del Angel, Gustavo
    Abstract: In this paper we discuss the emergence of the credit card in Mexico (1968) and Spain (1970) to document the importance of the institutional framework for the adoption and takeoff of this innovation in the system of payments. Our research compares the dissemination of a relatively homogeneous product in totally different environments and explains how this innovation was transformed from a technology with a closed system to a global network. With this we also seek to show some lessons in financial history to better understand contemporary phenomena, such as the adoption of innovations that are expected to be disruptive in the retail financial markets.
    Keywords: credit card, means of payment, banks, Mexico, Spain
    JEL: E5 L5 N0 N2
    Date: 2016–10–15
  2. By: Harker, Patrick T. (Federal Reserve Bank of Philadelphia)
    Abstract: President Patrick T. Harker gave his economic outlook and discussed issues surrounding financial technology at the University of Pennsylvania’s School of Engineering and Applied Science. The event was part of a lecture series on technology, business, and government
    Keywords: Financial; technology
    Date: 2017–04–18
  3. By: Buchak, Greg (University of Chicago); Matvos, Gregor (University of Chicago); Piskorski, Tomasz (Columbia University); Seru, Amit (Stanford University)
    Abstract: We study the rise of fintech and non-fintech shadow banks in the residential lending market. The market share of shadow banks in the mortgage market has nearly tripled from 2007-2015. Shadow banks gained a larger market share among less creditworthy borrowers, with a tilt towards refinancing mortgages. Shadow banks were significantly more likely to enter markets where traditional banks faced more regulatory constraints. This suggests that traditional banks retreated from markets with a larger regulatory burden, and that shadow banks filled this gap. Fintech firms accounted for almost a third of shadow bank loan originations by 2015. To isolate the role of technology in the decline of traditional banking, we focus on technology differences between shadow banks, holding the regulatory differences between different lenders fixed. Analyzing fintech firms? entry and pricing decisions, we find some evidence that fintech lenders possess technological advantages in determining corresponding interest rates. More importantly, the online origination technology appears to allow fintech lenders to originate loans with greater convenience for their borrowers. Among the borrowers most likely to value convenience, fintech lenders command an interest rate premium for their services. We use a simple model to decompose the relative contribution of technology and regulation to the rise of shadow banks. This simple quantitative assessment indicates that increasing regulatory burden faced by traditional banks and financial technology can account, respectively, for about 55% and 35% of the recent shadow bank growth.
    JEL: G02
    Date: 2017–03
  4. By: Berlin, Mitchell (Federal Reserve Bank of Philadelphia)
    Abstract: On October 1–2, 2015, the Payment Cards Center and the Research Department of the Federal Reserve Bank of Philadelphia hosted their eighth biennial conference focused on new research in consumer credit and payments. The seven papers presented during New Perspectives on Consumer Behavior in Credit and Payments Markets used new data and techniques to explore a number of longstanding questions pertaining to the design, and sometimes renegotiation, of financial contracts; the linkages between consumer credit and the real economy; the effects of government policy during the Great Recession; and the effect of timely disclosures about the cost of student loans on borrowing decisions.
    Keywords: asymmetric information; auto loans; business cycles; credit cards; educational finance; financial contracts; financial markets and the macro economy; government policy; government regulation; monetary policy and the supply of credit; mortgages; personal loans; student loans; unemployment duration; job search
    JEL: D12 D82 E32 E44 E5 G18 I22 J64
    Date: 2015–10–01
  5. By: Effosse, Sabine
    Abstract: ¿Hasta qué punto el uso del cheque en Francia está inmerso en una cronología contradictoria en relación a su uso en otros países europeos? Ciertamente, mientras que la mayoría de los países europeos habían abandonado el uso del cheque, Francia todavía constituía una excepción: en 2014 un 60% de uso en Francia, frente al 3% en España. Sin embargo, pese a la extensa legislación y a la nacionalización del crédito en 1945, el uso del cheque permaneció a un nivel muy bajo durante medio siglo. A finales de la década de 1960, y principalmente a mediados de los setenta, se produjo un cambio decisivo. El uso del cheque estuvo fomentado por medidas que introducían el pago mensual de los salarios y la difusión de las cuentas bancarias. Con la liberalización del crédito, los bancos comerciales condujeron vigorosas campañas publicitarias hacia los hogares con especial énfasis en la clientela femenina. El cheque triunfó en Francia, libre de comisiones y muy ligado a la apertura de cuentas bancarias, mientras que la sociedad sin ese medio de pago empezaba a desarrollarse en otros países. Basándose en los grandes bancos y en los archivos del regulador, este artículo pone de manifiesto la paradoja cronológica francesa debida a la específica regulación del crédito y al tardío uso de los servicios bancarios por parte de los hogares.
    Keywords: sistema de pagos, cheque, bancos, hogares, Francia
    JEL: N0 N2 P0
    Date: 2017–03
  6. By: Athey, Susan (Stanford University); Catalini, Christian (MIT); Tucker, Catherin E. (MIT)
    Abstract: This paper uses data from the MIT digital currency experiment to shed light on consumer behavior regarding commercial, public and government surveillance. The setting allows us to explore the apparent contradiction that many cryptocurrencies offer people the chance to escape government surveillance, but do so by making transactions themselves public on a distributed ledger (a 'blockchain'). We find three main things. First, the effect of small incentives may explain the privacy paradox, where people say they care about privacy but are willing to relinquish private data quite easily. Second, small costs introduced during the selection of digital wallets by the random ordering of featured options, have a tangible effect on the technology ultimately adopted, often in sharp contrast with individual stated preferences about privacy. Third, the introduction of irrelevant, but reassuring information about privacy protection makes consumers less likely to avoid surveillance at large.
    Date: 2017–02
  7. By: Williams, Robert Crane
    Abstract: Caribbean countries have been seriously impacted by the trend toward “de-risking” in the global financial system, and this is damaging to their economic security and the ability of Caribbean businesses to innovate. De-risking is the name given to the tendency of banking institutions to turn away from working relationships and lines of business for which the cost of regulatory compliance—and the risk of non-compliance— is deemed to be too high in comparison to the returns. This is a phenomenon that is affecting developing economies around the world, but the small and vulnerable economies of the Caribbean have been hardest hit. For example, recent years have seen a trend in which banks in major economies are severing their correspondent relationships with banks in the Caribbean, having determined that the profitability of these operations is outweighed by the cost of managing associated risks. Banks in the Caribbean have been left struggling to recover from this abandonment by many of their former business partners, having been reliant on these correspondent banking relationships as a means of access to global financial networks (Boyse and Kendall 2016). Under correspondent banking schemes, a “correspondent bank” – typically a banking institution with a presence in a major developed economy, such as the United States or European Union – holds an account on behalf of a bank located in a smaller, less developed economy. Many Caribbean banks use these correspondent accounts to provide their customers with international money transfer and foreign exchange services. However, institutional and regulatory factors have driven correspondent banks to reduce their exposure to risk. Particular areas of concern include issues surrounding anti-money laundering and combating the financing of terrorism (AML/CFT) and the need to ensure compliance with international trade sanctions. The costs associated with the high level of customer due diligence required to manage such risks are, in many cases, not justified by the low profit margins associated with correspondent banking services. As a result, many Caribbean banks are finding that the correspondent banking relationships that they have relied on in the past are being cut off.
    Date: 2017–04
  8. By: Gilles Duruflé; Thomas Hellmann; Karen E. Wilson
    Abstract: We examine the challenge entrepreneurial companies face in going beyond the start-up phase and growing into large successful companies. We examine the long-term financing of these so-called scale-up companies, focusing on the United States, Europe and Canada. We first provide a conceptual framework for understanding the challenges of financing scale-ups. We then show some data about the various aspects of financing scale-ups in the US, Europe and Canada. Finally we raise the question of long-term public policies to support the creation of a better scale-up environment.
    Date: 2017–04
  9. By: John P. Martin
    Abstract: A new technological epoch is underway – the so-called Machine Age –reflecting advances in artificial intelligence, digitalisation and Big Data. Some commentators have claimed that this epoch is different from previous ones in that it will produce large-scale technological unemployment, while others argue the contrary. Only time will judge who is right on this crucial debate. But the Machine Age will lead to major shifts in the demand and supplies of skills, especially digital skills. In this paper, I review the available crosscountry evidence on the distribution of such digital skills across the adult populations within and across a large sample of OECD countries. I also review the evidence on participation rates in adult learning. Finally, I outline how education, training and labour market policies could help expand the supply of digital skills.
    Keywords: Machine Age,technological unemployment,ICT-literacy/digital skills,adult learning,education and training policies,wage insurance
    JEL: I28 J24 J68 O33
    Date: 2017
  10. By: Orla Lynskey
    Abstract: Increasing regulatory and doctrinal attention has recently focused on the problem of ‘platform power’. Yet calls for regulation of online platforms fail to identify the problems such regulation would target, and as a result appear to lack merit. In this paper, two claims are advanced. First, that the concept of ‘platform power’ is both an under and over-inclusive regulatory target and, as such, should be replaced by the broader concept of a ‘digital gatekeeper’. Second, that existing legal mechanisms do not adequately reflect the power over information flows and individual behaviour that gatekeepers can exercise. In particular, this gatekeeper power can have implications for individual rights that competition law and economic regulation are not designed to capture. Moreover, the technological design, and complexity, of digital gatekeepers renders their operations impervious to scrutiny by individual users, thereby exacerbating these potential implications.
    JEL: L81
    Date: 2017–02–21
  11. By: M. Keith Chen; Judith A. Chevalier; Peter E. Rossi; Emily Oehlsen
    Abstract: Participation in flexible contract work has increased dramatically over the last decade, often in settings where new technologies lower the transaction costs of providing labor flexibly. One prominent example of this is the ride-sharing company Uber, which allows drivers to provide (or not provide) rides anytime they are willing to accept prevailing prices for this service. An Uber-style arrangement offers workers flexibility in both setting a customized work schedule and also adjusting it throughout the day. Using high-frequency data of hourly earnings for Uber drivers, we document the ways in which drivers utilize this real-time flexibility and we estimate the driver surplus generated by this flexibility. We estimate how drivers' reservation wages vary in high frequency from hour to hour, which allows us to study the surplus and supply implications of both flexible and traditional work arrangements. Our results indicate that, while the Uber relationship may have other drawbacks, Uber drivers benefit significantly from real-time flexibility, earning more than twice the surplus they would in less flexible arrangements. If required to supply labor inflexibly at prevailing wages, they would also reduce the hours they supply by more than two-thirds. The implications of our findings for the future of flexible work are discussed.
    JEL: J22 L91
    Date: 2017–03
  12. By: Simplice Asongu (Yaoundé/Cameroun); Ndemaze Asongu (Yaoundé/Cameroun)
    Abstract: Purpose- We respond to some challenges in the transition to Sustainable Development Goals by examining the correlations between mobile and inclusive development (quality of growth, poverty and inequality) in 93 developing countries for the year 2011. Design/methodology/approach- Mobile money service entails: ‘mobile used to pay bills’ and ‘mobile used to receive/send money’. Interactive Ordinary Least Squares are employed. Findings- The following findings are established. First, increasing use of the mobile phones to pay bills: is positively linked to ‘quality of growth’ in lower-middle income countries (LMIC) and negatively correlated with inequality in Latin American countries (LA). Second, growing use of mobile phones to send/receive money is negatively associated with poverty in Asia and Pacific (AP) and Central and Eastern Europe (CEE). Originality/value- Macroeconomic data on mobile money service is scarce. No study to the best of our knowledge has used this macroeconomic mobile money service data before.
    Keywords: Mobile money services, Quality of growth, poverty, inequality
    JEL: G20 O40 I10 I20 I32
    Date: 2017–01
  13. By: Fabio Ortega (Banco de la República de Colombia); Carlos León (Banco de la República de Colombia)
    Abstract: Este documento tiene como objetivo construir, visualizar y examinar las redes de transferencias compensadas por ACH Colombia –la infraestructura financiera que compensa y liquida la mayor cantidad y valor de las transferencias electrónicas al por menor ordenadas por personas naturales y jurídicas en Colombia. Encontramos que las redes de transferencias compensadas por ACH Colombia son atípicas frente a aquellas comúnmente documentadas en la literatura sobre redes financieras: son densas, homogéneas en la distribución de las conexiones, y con altos niveles de reciprocidad y transitividad. La función de las instituciones financieras como procesadores de órdenes de pago determina esta tipología. Sin embargo, existe una distribución heterogénea de los valores de las transferencias, la cual se relaciona con el tamaño por activos y por número de clientes de las instituciones financieras participantes. Los resultados son útiles para entender de mejor manera el funcionamiento de las ACH y de otros sistemas de pago de bajo valor. Classification JEL: L14, E42, G21.
    Keywords: topología de redes, infraestructura financiera, transferencias electrónicas
    Date: 2017–04
  14. By: Daniel Heller (Peterson Institute for International Economics)
    Abstract: Bitcoin is the first digital currency to have received widespread recognition and interest from users, developers, investors, central banks, and regulators, largely because of its “distributed ledger” technology, which allows it to provide relatively low-cost peer-to-peer transfers of money. Users own the bitcoin system and can make changes to the rules and protocol only by consensus or a supermajority of 95 percent. This communitarian ownership model and the fact that payments in bitcoin can be easily made from one end of the globe to another have led many to believe and hope that bitcoin will one day replace sovereign currencies—and the central banks that issue them. In addition, some observers see bitcoin as the origin of a fundamental transformation of the financial system toward a more decentralized structure. As a medium of exchange, bitcoin is still small compared with traditional channels, and it is held largely for speculation rather than transactions. Its lack of a mechanism for dampening the price effect of an increase in demand or reducing supply in case of a demand slump means that adopting bitcoin as a currency would be like reverting to a currency based on gold coins. As long as central banks continue to pursue stability-oriented monetary policies, they will have little reason to fear that the bitcoin system will replace them.
    Date: 2017–04
  15. By: Boonchai Hongcharu (NIDA Business School)
    Abstract: Customers receive a large amount of information from today?s online world. It has been increasingly difficult for the marketers to monitor and respond to different types of messages affecting their brand. At the same time, marketers also need to communicate with customers through various types of messages. It is interesting to understand the roles of message appeals have while customers expose to different types of online news about the brand. We conduct an experiment with 240 randomly selected subjects on a 2 message appeals (rational and emotion) X 4 online news exposure (no exposure, positive news exposure, negative news exposure and both positive and negative news exposure) factorial design to explore their effects on five aspects of consumer responses: attitude toward the ad, credibility, persuasion, attitude toward the brand and purchase intention. The results revealed both message appeals and online news exposure significantly affect attitudes toward the ad and the brand. Message appeals have a significant effect on persuasion and only the interactions of both factors affect purchase intention. Discussion and implications on the findings will be provided.
    Keywords: message appeals, rational message, emotional message, online news exposure, positive news, negative news, consumer response,
    JEL: M30 M31 M37
  16. By: Simplice Asongu (Yaoundé/Cameroun); John C. Anyanwu (African Development Bank, Côte d\\\'Ivoire); Vanessa S. Tchamyou (Yaoundé, Cameroon)
    Abstract: Information technology is increasingly facilitating mechanisms by which information asymmetry between lenders and borrowers in the financial sector can be reduced in order to enhance financial access for human and economic development in developing countries. We examine conditional financial development from ICT-driven information sharing in 53 African countries for the period 2004-2011, using contemporary and non-contemporary quantile regressions. ICT is measured with mobile phone penetration and internet penetration whereas information sharing offices are public credit registries and private credit bureaus. The following findings are established. First, there are positive effects with positive thresholds from ICT-driven information sharing on financial depth (money supply and liquid liabilities) and financial activity (at banking and financial system levels). Second, for financial intermediation efficiency, the positive effects from mobile-driven information sharing are apparent exclusively in certain levels of financial efficiency. Third, with regard to financial size, mobile-driven information sharing is positive with a negative threshold, whereas, internet-driven information sharing is positive exclusively among countries in the bottom half of financial size. Positive thresholds are defined as decreasing negative or increasing positive estimated effects from information sharing offices and vice-versa for negative thresholds. Policy implications are discussed.
    Keywords: Information Sharing; Financial Development; Quantile regression
    JEL: G20 G29 O16 O55 C52
    Date: 2017–01
  17. By: Ramana Nanda (Harvard Business School, Entrepreneurial Management Unit); Matthew Rhodes-Kropf (Massachusetts Institute of Technology)
    Abstract: An extensive literature on venture capital has studied asymmetric information and agency problems between investors and entrepreneurs, examining how separating entrepreneurs from the investor can create frictions that might inhibit the funding of good projects. It has largely abstracted away from the fact that a startup typically does not have just one investor, but several VCs that come together in a syndicate to finance a venture. In this chapter, we therefore argue for an expansion of the standard perspective to also include frictions within VC syndicates. Put differently, what are the frictions that arise from the fact that there is not just one investor for each venture, but several investors with different incentives, objectives and cash flow rights, who nevertheless need to collaborate to help make the venture a success? We outline the ways in which these coordination frictions manifest themselves, describe the underlying drivers and document several contractual solutions used by VCs to mitigate their effects. We believe that this broader perspective provides several promising avenues for future research.
    Keywords: venture capital, syndication, networks, entrepreneurship
    JEL: G24 K22 L14 M52
    Date: 2017–04
  18. By: Sebastian Infante
    Abstract: It has been documented that an increase in the demand for safe assets induces the private sector to create more money-like claims. Focusing on private repos backed by U.S. Treasury securities, I show that an increase in the demand for safe assets leads to a decreases in the issuance of Treasury repos. The intuition is that Treasury securities already function as a safe asset, thus in terms of safe asset creation, private Treasury repos are neutral. In the model, Treasury repos are beneficial because they shift risk (i.e. term premia) from relatively risk averse households to a more risk tolerant financial sector, which issues repos to finance its portfolio. When the demand for safe assets increases, Treasury securities are reallocated to households, reducing the amount of Treasury repo issued by the financial sector. By contrast, Treasury repos created by the Federal Reserve's RRP program---a safe asset created by the public sector---increase with the demand for safe as sets. I show the data supports the model's main predictions.
    Keywords: Federal Reserve Board and Federal Reserve System ; Monetary policy ; Private money ; Repo ; Safe assets
    JEL: G2 G12 E4 E51
    Date: 2017–04–11
  19. By: Joy Kutaka-Kennedy (National University)
    Abstract: In today?s word, we are becoming more wired and tech savvy every day. Whole cities, metro systems, universities and school districts have free internet access as we become more technologically embedded in our interconnected world. Many schools offer K-12 students online classes, some districts even requiring that students take an online class before graduating and other districts becoming fully online with no ?brick and mortar? classrooms. Despite the growing demand for online teachers, university teacher preparation programs are slow to develop programs to meet the need. Many options exist to broaden the field experience with supervision using online technologies and supports like online synchronous and asynchronous discussion boards, collaborative or self-reflective video analysis and review, and live, real time chats and feedback. Tools such as these can lead the way to program development and expansion to better prepare future teachers for teaching in the K-12 online environment.
    Keywords: online teaching, online supervision, online video tools
    JEL: I29 I23 I20
  20. By: Kristian Lopez (OSIPTEL, Gerencia de Politicas Regulatorias y Competencia)
    Abstract: Este documento presenta un marco teorico sencillo para analizar el rol del nivel y la incertidumbre del ingreso como determinantes de la demanda de telefonia fija en terminos de acceso y uso. En particular se muestra como un incremento de la incertidumbre en el ingreso desincentiva el acceso y el uso del servicio de telefonia por parte de los hogares. Ademas, a manera de ejemplo, se desarrolla un ejercicio de simulacion para una poblacion de hogares los cuales tienen iguales preferencias pero estan afectos a una distribucion del ingreso.
    Keywords: Nonlinear Pricing, Telephone Access, Three-Part Tariffs, Uncertainty, Income Distribution
    JEL: C61 D81 L96
  21. By: Victor Torres (OSIPTEL, Gerencia de Politicas Regulatorias y Competencia)
    Abstract: La competencia generada por los operadores no incumbentes en el mercado de telefonia fija (principalmente en el segmento corporativo) y el mecanismo regulatorio establecido (regulacion por precios tope) tiene efectos adversos sobre el nivel de cobertura potencial que podria desarrollar la empresa incumbente de telefonia fija, limitando la inversion de expansion a ser realizada por esta ultima. En este sentido, el presente documento analiza los criterios utilizados por una empresa de telecomunicaciones para decidir la expansion de su red de telefonia fija en diferentes localidades. En particular, se consideran los indicadores frecuentemente utilizados y las condiciones que puede estar enfrentando la empresa al momento de decidir. En conclusion, se observa que la empresa puede escoger diferentes proyectos, dependiendo de las restricciones de fondos que enfrenta la empresa y posibles motivaciones gerenciales.
    Keywords: Expansion de red, Decisiones de inversion, Precios Tope.
    JEL: L51 G31 L96
  22. By: Manuel Gavilano (OSIPTEL, Gerencia de Politicas Regulatorias y Competencia); Jose Romero (OSIPTEL, Gerencia de Politicas Regulatorias y Competencia)
    Abstract: El presente documento tiene como objetivo analizar la magnitud del diferencial On-net/Offnet en el mercado de telecomunicaciones moviles peruano y los efectos que genera en el consumo de los abonados moviles y en la dinamica competitiva. Asi, sobre la base de la teoria y de la experiencia en diversos paises, se analiza la situacion en el Peru, para determinar si seria justificable y conveniente una intervencion regulatoria en la actualidad.
    Keywords: Dinero electronico, Inclusion financiera, Telefon?a Movil, Peru
    JEL: L51 O57 L96 O16
    Date: 2016
  23. By: Thomas W. Grannemann; Randall S. Brown
    Abstract: The authors assess the impact of widespread testing of alternative payment models on the ability to find credible comparison groups.
    Keywords: Medicare, alternative payment models, factorial design
    JEL: I
  24. By: KAWAHAMA Noboru; TAKEDA Kuninobu
    Abstract: Digital platforms have generated a variety of innovation and tremendous benefits in our lives. But at the same time, there is concern that their characteristics such as multi-sidedness or economies of scale might give rise to monopolistic gatekeepers in the information and communications technology (ICT) sectors, and that these gatekeepers might abuse their dominant positions to force clients to accept unfavorable contracts or eliminate rivals. It has been discussed actively worldwide whether competition laws should be applied to digital platformers, and, if so, whether traditional market power analysis works well or not. We address these problems by focusing on the "relevant market." Defining a relevant market has long been believed to be a prerequisite for market power analysis. However, there seems to be some difficulty in defining it for analyzing digital platforms. For example, when considering the interdependency between two or more distinct groups of customers, how many markets do we define? Platformers sometimes provide services for free. Can we define a relevant market in such situation? It is widely known the volume of data dictates the market position of the platformers. Can we evaluate the value of data in defining markets? We discuss these and other market definition problems under the title of "free market," "innovation market," and "data market."
    Date: 2017–04
  25. By: Robert Taczmann (University of Pecs)
    Abstract: Modernizing a national financial system is one of the most complex economical decisions as it has impacts on the whole national economy. Based on my research the fundamen-tals of this process span across the basic idea, market consultation, modeling and simula-tions, discovering technology barriers and regulations by law.The appearance of the basic need is the very first step of a long journey, typically lasts 5 to 10 years. Many countries ? like United Kingdom, United States of America, Switzerland, Poland, Sweden, Denmark, Singapore, Australia as well as the European Central Bank ? have already implemented an instant payment system, though each is different.As first step, a round-table discussion with market players is suggested to collect their ideas and expectations on the new system, however involving government and private sector might also be one of the key success factors. Based on the results, model making and simulation running comes next in order to set the field for the project, via determining payment limits; the way and conditions of clearing and settlement; working model; service hours; and provided services. Technology and resource barriers further helps in cleaning the possible project portfolio, however, a Central Bank is often contemplated as having no limits on these. In reality an instant payment system also needs its funds, basically coming from latter transaction fees charged to individuals spread over typically 10 years. Last but not least the field defined by the legal system has to be checked as many con-necting codes need a change. Even though this is a long and resource absorbing pro-cess most Central Banks acts as legislator, codifying the changes not taking longer than a year.However a new payment system is highly time consuming, the basic idea and the possi-ble solutions have to be challenged in each and every phase of the program. The uniqueness of the program makes it extremely difficult, scaling is a suggested method of avoiding an unsuccessful implementation.
    Keywords: Instant Payment Systems, Fast, Immediate, Secure, Secondary ID
    JEL: R11

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