Getting the balance right: innovation, trust and regulation in retail payments
Joint European Central Bank/Suomen Pankki Conference
4 - 5 June 2015
Finlandia Hall, Helsinki, Finland
Conference programmeOverview of speakers
The European Central Bank and Suomen Pankki are hosting a conference to help identify possible developments and dynamics that will shape the future retail payments landscape and to provide a forum for debate among market participants, policymakers, regulators and researchers. Participation is by personal invitation only.
The programme will include policy and academic sessions on the following themes:
- Payment choice and global payments
- Retail payments in a digital era - faster, cheaper, easier?
- User experience, behaviour and trust in retail payments
- Innovators, regulators and the competition-cooperation nexus
- Efficient and safe future payments: determinants, opportunities and challenges
Conference agenda and documentation
- 08:00
- Registration and coffee
- 09:00
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Conference opening
Erkki Liikanen, Governor, Suomen PankkiIntroductory speech
Yves Mersch, Member of the Executive Board, European Central Bank - 09:30
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Keynote speech: Retail payments in the Digital Single Market
Andrus Ansip, Vice-President, European Commission, Digital Single Market - 10:00
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Panel discussion: Getting the balance right: innovation, trust and regulation in retail payments
Chair: Yves MerschIntroductory remarks
Jonathan Faull, Director-General, European Commission- Pieter van der Does, President & CEO, Adyen
- Lorenza Martinez Trigueros, General Director, Banco de México
- Anne-Sophie Parent, Secretary General, AGE Platform
Questions and answers
- 12:00
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Academic keynote address: The Political Economy of Payments Improvement: An Outsider's View
Charles M. Kahn, Professor of Finance and Fred S. Bailey Memorial Chair of Finance, University of IllinoisChair: Seppo Honkapohja, Member of the Board, Suomen Pankki
Questions and answers
Parallel streams: policy sessions and academic sessions (Theme I and Theme II)
- 14:15
-
Theme I: Payment choice and global payments
Policy panel: Global payments: drivers and challenges
Chair: Klaus Löber, Head of the CPMI Secretariat, Bank for International Settlements
- Thomas Lammer, World Bank
- Magnus Lind, Treasury Peer
- Lukas May, TransferWise
- Dirk Schrade, Deutsche Bundesbank
- Christian Westerhaus, Deutsche Bank
Questions and answers
- 16:15
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Theme II: Retail payments in a digital era - faster, cheaper, easier?
Policy panel: How does technical development affect the retail payments landscape?
Chair: Wiebe Ruttenberg, Head of the Market Integration Division, European Central Bank
- Vincent Brennan, Bank of Ireland
- Francesco Burelli, Innovalue
- Nilesh Dusane, Ripple Labs
- Raul Morales, CEMLA
- Sirpa Nordlund, Mobey Forum
Questions and answers
- 14:15
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Theme II: Retail payments in a digital era - faster, cheaper, easier?
Chair: Leo van Hove (Professor, Vrije Universiteit Brussel)- How do speed and security influence consumers’ payment behavior?
Joanna Stavins and Scott Schuh, Federal Reserve Bank of Boston
Presentation - Price Fluctuations and the Use of Bitcoin: An Empirical Inquiry
Michal Polasik, Nicolaus Copernicus University Torun, et al.
Presentation - Discussant: Carin van der Cruijsen, De Nederlandsche Bank
Questions and answers
- How do speed and security influence consumers’ payment behavior?
- 16:15
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Theme I: Payment choice and global payments
Chair: Santiago Carbó-Valverde, Professor, Bangor Business School- Cash Management and Payment Choices: A simulation model with international comparison
Lola Hernandez, De Nederlandsche Bank, et al.
Presentation - Payment Choice and the future of currency: insights from 2 billion retail transactions
Zhu Wang and Alexander L. Wolman, Federal Reserve Bank of Richmond
Presentation - Discussant:Matti Virén, Professor, University of Turku, Suomen Pankki
Questions and answers
- Cash Management and Payment Choices: A simulation model with international comparison
Evening
Dinner speech by Governor Erkki LiikanenParallel streams: policy sessions and academic sessions (Theme III and Theme IV)
- 09:00
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Theme III: User experience, behaviour and trust in retail payments
Policy panel: The case for instant payments – need or expectation?
Chair: Päivi Heikkinen, Head of the Cash Department, Suomen Pankki- Farid Aliyev, BEUC
Presentation: The case for instant payments – need or expectation - Olivier Denecker, McKinsey
Presentation: Real-time payments is NOT just about speed: decision to enhance the payments infrastructure is often made based on a combination of factors - John Maynard, Paym
- Tony Richards, Reserve Bank of Australia
Presentation: RBA Strategic Objectives - Kasper Sylvest, Danske Bank
Presentation: Straksclearingen – the Danish instant payment solution
Questions and answers
- Farid Aliyev, BEUC
- 11:00
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Theme IV: Innovators, regulators and the competition-cooperation nexus
Policy panel: How best to reconcile the regulatory agenda and innovation?
Chair: Helmut Wacket, Head of Oversight Division, European Central Bank
- Domenico Gammaldi, Banca d’Italia
- Douwe Lycklama, InnoPay
- Michael Salmony, Equens
- Javier Santamaria, Banco Santander, Chair of the European Payments Council
- Irmfried Schwimann, European Commission, DG Competition
Questions and answers
- 09:00
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Theme IV: Innovators, regulators and the competition-cooperation nexus
Chair: Ron Berndsen, Professor, Tilburg University, De Nederlandsche Bank- Innovation and competition in Internet and mobile banking: an industrial organization perspective
Carlotta Mariotto, MINES ParisTech, and Marianne Verdier
Presentation -
Retail Payment Innovations and Cash Usage: Accounting for Attrition Using Refreshment Samples
Heng Chen, Marie-Hélène Felt and Kim P. Huynh, Bank of Canada
Presentation - Discussant: Guerino Ardizzi, Banca d’Italia
Questions and answers
- Innovation and competition in Internet and mobile banking: an industrial organization perspective
- 11:00
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Theme III: User experience, behaviour and trust in retail payments
Chair: Jouko Vilmunen, Head of Research, Suomen Pankki)- Changing payment patterns at point-of-sale: their drivers
Carin van der Cruijsen and Mirjam Plooij, De Nederlandsche Bank
Presentation - Precautionary motives in short-term cash management - Evidence from German POS transactions
Martina Eschelbach and Tobias Schmidt, Deutsche Bundesbank
Presentation - Discussant: Helmut Stix, Oesterreichische Nationalbank
Questions and answers
- Changing payment patterns at point-of-sale: their drivers
- 14:00
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Joint policy/academic panel: 2020 and beyond: payments in a 24/7/365 connected world
Pierre Petit, Deputy Director General Market Infrastructure and Payments, European Central Bank- Santiago Carbó-Valverde, Bangor Business School
- Shuji Kobayakawa, Bank of Japan
- Antonio Massanell, Cecabank, Caixa Bank, European Savings & Retail Banking Group
- Erkki Poutiainen, EBA Clearing, Nordea
Questions and answers
Closing remarks
Questions and answers
More information
Central banks in the euro area strive to strike the right balance between improving the efficiency of retail payment services, safeguarding trust in payment systems and fostering further market integration in an environment that is still prone to fragmentation. This is a substantial challenge, as retail payment markets have undergone a major transformation process over recent years.
In Europe, harmonised SEPA payment instruments have just replaced national credit transfers and direct debits, resulting in billions of monthly payments now being based on the same business and technical standards. Two important EU legislative initiatives (proposals for a revised Payment Services Directive and a regulation on interchange fees) will continue to affect the retail payments market, especially the card payment business and the market for innovative payment services. Another new piece of EU legislation (the Payment Accounts Directive) will bring about a high degree of price transparency in payment account services and aims to promote financial inclusion. Technological advances are driving the development of an increasing variety of services, including new person-to-person payment solutions and instant payment services for end users. New concepts of market structure and new types of business model are being discussed and could be put into practice.
All the above will have an impact on payment behaviour and payment methods used. It may raise new questions on how to ensure trust in retail payment schemes and systems. In addition, owing to regulatory and technical developments both in Europe and beyond, new players are entering the market, challenging the role of the incumbent payment service providers and their payment solutions. Furthermore, the continuous trend of globalisation and growing international trade has fostered the call for more efficient cross-border payment solutions.
Call for papersRetail payments