The future of retail payments: opportunities and challenges
A joint conference by the European Central Bank and the Oesterreichische Nationalbank
Vienna, 12 - 13 May 2011
About
Retail payment markets have been developing rapidly throughout the last decade. In Europe a number of legal and regulatory initiatives and measures have been adopted with the aim of achieving an integrated single market. In other regions (e.g. Australia, Canada, the United States) retail payment markets have also recently been subject to regulatory and legal interventions.
The market-initiated Single Euro Payments Area (SEPA) project has accelerated the development of the European retail payments market into one that is based on increasingly integrated and more competitive market structures. Technological innovations have driven these fundamental changes. Other regions have had similar experiences or even more significant movement in the field of payment innovations and developments.
Although there is a widespread belief that increasing the development and integration of retail payments is likely to generate benefits on the whole, it may also involve challenges in the shape of risks and security threats. Against this background, it is important to understand the economic factors driving future developments and to take a forward-looking perspective that anticipates the factors likely to influence developments in the retail payment market.
Objectives
The objectives of this conference are twofold. First, the conference aims to improve the general understanding of payment economics (and related disciplines) in the field of retail payments and, more specifically, to help identify possible developments and dynamics that will shape the future payment landscape. Second, this conference aims to provide a forum for debate and interaction among market participants, policy-makers and researchers.
The four major themes covered by the conference are:
- Theme I: Transformation of the banking business and its impact on retail payments: governance, efficiency and integration
- Theme II: Payments behaviour and the usage of payment instruments
- Theme III: Creating a competitive retail payments market
- Theme IV: Future challenges in retail banking and payments
Opening remarks
Wolfgang Duchatczek (Vice Governor, Oesterreichische Nationalbank)
Theme I: Transformation of the banking business and its impact on retail payments: governance, efficiency and integration
Panel session
Chair: Gertrude Tumpel-Gugerell (Member of the Executive Board, European Central Bank)
speech
- Giovanni Carosio (Member of the Governing Board, Banca d’Italia)
- Rainer Hauser (Member of the Management Board, UniCredit Bank Austria)
- Feriha Imamović (Vice Governor, Central Bank of Bosnia and Herzegovina)
- Júlia Király (Deputy Governor, Magyar Nemzeti Bank)
- Bertrand Lavayssière (Managing Director, Capgemini)
Theme II: Payments behaviour and the usage of payment instruments
Academic session II.1
Chair: Leo Van Hove (Professor of Economics, Vrije Universiteit Brussel - Free University of Brussels)
- Using cash to monitor liquidity – implications for payments, currency demand and withdrawal behaviour
Ulf von Kalckreuth (Principal Economist, Deutsche Bundesbank)
Tobias Schmidt (Economist, Deutsche Bundesbank)
Helmut Stix (Research Economist, Oesterreichische Nationalbank)
paper presentation - How do you pay? The role of incentives at the point of sale
Carlos Arango (Principal Researcher, Bank of Canada)
Kim P. Huynh (Senior Analyst, Bank of Canada)
Leonard Sabetti (Bank of Canada)
paper presentation
Discussant: Heiko Schmiedel (Senior Market Infrastructure Expert, European Central Bank) presentation
Theme III: Creating a competitive retail payments market
Academic session III.1: Trust in payment systems and the implication of fraud
Chair: Martin Summer (Head of Division, Oesterreichische Nationalbank)
- Fraud, investments and liability regimes in payment platforms
Marianne Verdier (Assistant Professor of Economics, Université Paris Ouest Nanterre)
Anna Creti (Professor, Université Paris Ouest Nanterre and Ecole Polytechnique)
paper presentation
- Do newspaper articles on card fraud affect debit card usage?
Anneke Kosse (Policy Advisor, De Nederlandsche Bank)
paper presentation
Discussant: Harry Leinonen (Advisor to the Board, Suomen Pankki - Finlands Bank) presentation
Practitioners’ session III.1: Customers’ benefits of an integrated retail payments market and their readiness for change
Chair: Stefan Augustin (Director, Oesterreichische Nationalbank) presentation
- Peter Jameson (FI Product Management Head, Bank of America Merrill Lynch) presentation
- Daniel Ochsner (Head Central Settlement, Würth Finance) presentation
- Luca Poletto (Head of SEPA Offer, BNP Paribas) presentation
- Mark Roemer (Head of Global Transaction Bank, Siemens Financial Services) presentation
Academic session III.2: Card payments, network effects and surcharging
Chair: Cornelia Holthausen (Adviser, European Central Bank)
- To surcharge or not to surcharge? A two-sided market perspective of the no-surcharge rule
David Henriques (Ph.D Visiting Scholar, Stern School of Business, New York University)
Nicholas Economides (Professor of Economics, Stern School of Business, New York University)
paper presentation - Card acceptance and surcharging: the role of costs and competition
Nicole Jonker (Senior Policy Advisor & Economist, De Nederlandsche Bank) paper presentation
Discussant: Özlem Bedre-Defolie (Assistant Professor, European School of Management and Technology) 1st presentation 2nd presentation
Practitioners’ session III.2: Role of central banks in retail payment processing: competitor, facilitator or partner for cooperation?
Chair: Wiebe Ruttenberg (Head of Division, European Central Bank)
- Günter Ernst (Managing Director, GSA - Cash Service Austria)
- Gerard Hartsink (Senior Executive Vice President, ABN Amro Bank)
- Gian Bruno Mazzi (Managing Director, SIA-SSB)
- Matthias Schmudde (Head of Division, Deutsche Bundesbank)
- Coen Voormeulen (Division Director, De Nederlandsche Bank)
Academic session III.3: Card payments, household finance, and interchange fees
Chair: Stuart E. Weiner (Visiting Professor, Kansas State University) presentation
- Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations
Oz Shy (Senior Economist, Federal Reserve Bank of Boston)
Scott Schuh (Director Consumer Payments Research Center & Economist, Federal Reserve Bank of Boston)
Joanna Stavins (Senior Economist and Policy Advisor, Federal Reserve Bank of Boston)
paper presentation - Consumer credit and payment cards
Wilko Bolt (Senior Economist, De Nederlandsche Bank)
Elizabeth Foote (Teaching Fellow, London School of Economics)
Heiko Schmiedel (Senior Market Infrastructure Expert, European Central Bank)
paper presentation
Discussant: Stuart E. Weiner (Visiting Professor, Kansas State University)
Keynote speech: Opening financial services markets – The European approach
Cecilio Madero Villarejo (Deputy Director General, DG Competition, European Commission)
Panel session: Efficient and competitive retail payment markets
Chair: Wolfgang Duchatczek (Vice-Governor, Oesterreichische Nationalbank)
- Fred Bär (Managing Director, VocaLink) presentation
- Giorgio Ferrero (Head of Payment System Development and Strategy, Intesa Sanpaolo) presentation text
- Gilbert Lichter (Chief Executive Officer, EBA Clearing)
- Irmfried Schwimann (Director DG Competition, European Commission)
Theme IV: Future challenges in retail banking and payments
Keynote speech: Innovation in retail payments
David S. Evans (Author and Founder of Market Platform Dynamics) presentation
Panel session: Retail payments: Innovations, security and financial inclusion
Chair: Daniela Russo (Director General, European Central Bank)
- Massimo Cirasino (Head of Payment System Development Group, The World Bank) presentation
- Declan Daly (Vice President Central Europe, Western Union) presentation
- Monique Goyens (Director General, BEUC) presentation
- Javier Perez (President, MasterCard Europe) presentation
- Chris Skinner (Chief Executive, Balatro Ltd) presentation text
Joint closing remarks
Gertrude Tumpel-Gugerell (Member of the Executive Board, European Central Bank)
speech
Wolfgang Duchatczek (Vice Governor, Oesterreichische Nationalbank)