Payment Economics Network (PEN)
The PEN seeks to link policy practices and research activities in the field of payment systems and post-trading infrastructure. This web page fosters the exchange of information by serving as a point of reference for conference announcements, research papers, data sources and news in the field of payment economics.
The quantity and quality of research on issues relating to payment and settlement systems has increased substantially over the past few years. However, payment economics has not yet gained the recognition or infrastructure that other central bank-related research fields enjoy. As a first step towards filling that gap and as an attempt to further strengthen the link between research and practice, the ECB has joined forces with colleagues at other central banks, as well as academics, and established an informal payment economics network for interested central bankers and academics around the world.
The small team that coordinates the PEN includes representatives of the Reserve Bank of Australia, the Bank of Canada, the Bank of England, the European Central Bank, De Nederlandsche Bank and the Federal Reserve Banks of Chicago and New York.
Main research areas
Payment economics covers a variety of issues relating to large-value and retail payment systems, central clearing counterparties (CCPs) and securities settlement systems in general. Research papers fall into three broad categories:
Large Value Payment Systems
This is the most well-established area of payment economics literature and comprises both theoretical contributions and empirical studies. The latter can be divided into five categories: (i) liquidity; (ii) patterns, timing and participants’ behaviour; (iii) interbank money markets; (iv) topology and network analysis; and (v) simulations of counterfactual scenarios.
Retail payment systems
Research on retail payments includes studies looking at credit cards and mobile and electronic payments. It aims to identify types of consumer behaviour, quantify the impact of technological and regulatory advances in the industry, and propose new ideas and features in the field of retail payments.
Analysis of post-trading infrastructure represents the newest branch of payment economics. Studies looking at the modelling and simulation of CCP settlement – including analysis of newly proposed regulations and the concept of CCPs as public goods – fall into this category, as do studies of other settlement systems, alternative proposals for new clearing networks and discussions about over-the-counter (OTC) transactions.
Data sources have traditionally been the biggest obstacle to research studies in the field of payment economics owing to technical constraints and the problems posed by proprietary databases and confidentiality agreements. However, it has recently become easier for practitioners and academics to access and use transaction-level data.
The SWIFT Institute, which was launched in April 2012, fosters independent research by giving grants and access to research data to academics, industry professionals and central bank experts. The SWIFT Institute regularly publishes calls for proposals and call for papers.
The ECB’s Statistical Data Warehouse (SDW) provides a wide range of data relating to payment and securities settlement systems in the European Union.
If you would like to join the network, make us aware of new papers, conferences or other relevant developments, or simply suggest improvements, please get in touch with us by email.
The PEN does not itself express views or adopt positions on issues. Any opinions expressed in documents made available through the PEN (including this web page) are those of the relevant organisations and authors and do not necessarily reflect the views of the member institutions.
- Correspondent Banking in Euro: bank clustering via self-organizing maps
- How to measure the unsecured money market? The Eurosystem’s implementation and validation using TARGET2 data
- Retail payments and economic growth
- The Statistics and Timing of TARGET2 Interbank Payments
- The social and private costs of retail payment instruments: a European perspective
- (In)efficient investment in financial market infrastructure: the role of governance structures
- Auto-collateralization as a liquidity saving mechanism
- Estimating the intraday liquidity risk of financial institutions: a Monte Carlo simulation approach
- Is collateral becoming scarce? Evidence for the euro area
- Derivatives Clearing, Default Risk, and Insurance
- Competition and Strategic Control of a Central Counterparty: When Lower Risk Increases Profit
- A comparison of Libor to other measures of bank borrowing costs
- The impact of Payment System Design on Tiering Incentives
- Payment System Design and Participant Operational Disruptions
- Imperfect Competition in the Interbank Market for Liquidity as a Rationale for Central Banking
- Bank behaviour and risks in CHAPS following the collapse of Lehman Brothers
- ATM Fees, Pricing and Consumer Behavior: An Analysis of ATM Network Reform in Australia
- Clearing, counterparty risk and aggregate risk
- Implicit intraday interest rate in the UK unsecured overnight money market
- An Empirical Study of Trade Dynamics in the Fed Funds Market
- Information insensitive securities: the true benefits of Central Counterparties
- Central Counterparty Clearing: Incentives, Market Discipline and the Cost of Collateral
- An agent-based model of payment systems
- Designing large value payment systems: An agent-based approach
- Consumer credit and payment cards
- Interchange fees in card payments
- CDS as Insurance: Leaky Lifeboats in Stormy Seas
- Is this bank ill? The diagnosis of doctor TARGET2
- Stressed, Not Frozen: The Federal Funds Market in the Financial Crisis
- Inducing Agents To Report Hidden Trades: A Theory Of An Intermediary
- Intraday liquidity: risk and regulation
- Adopting, Using, and Discarding Paper and Electronic Payment Instruments: Variation by Age and Race
- Intraday two-part tariff in payment systems
- The 2010 Federal Reserve Payments Study Noncash Payment Trends in the United States: 2006 – 2009
- Making OTC Derivatives Safe―A Fresh Look
- Operational problems in banks – Effects on the settlement of payments in Norges Bank
- Liquidity Provision and Free-Riding in CHAPS
- The microstructure of the money market before and after the financial crisis: a network perspective
- The Benefits to Government of Connecting Low-Income Households to an E-Payment System: An Analysis in India
- Exploring an uncharted market: Evidence on the unsecured Swiss franc money market
- Monitoring the unsecured interbank money market using TARGET2 data
- Liquidity costs and tiering in large-value payment systems
- The sterling unsecured loan market during 2006–08: insights from network theory
- Interbank overnight interest rates – gains from systemic importance
- Precautionary Hoarding of Liquidity and Inter-Bank Markets: Evidence from the Sub-Prime Crisis
- Liquidity-saving mechanisms in collateral-based RTGS payment systems
- Liquidity saving in real-time gross settlement systems — an overview
- Collateral, Netting and Systemic Risk in the OTC derivatives Market
- Making Over-the-Counter Derivatives Safer: The Role of Central Counterparties
- The safety of cash and debit cards: a study on the perception and behavior of Dutch customers
- The Impact of Electronic Payments on Economic Growth
- Does a Central Clearing Counterparty Reduce Counterparty Risk?
- Banks’ intraday liquidity management during operational outages: theory and evidence from the UK payment system
- Simulation analyses and stress testing of payment networks
- Return to retail banking and payments
- SEPA, efficiency, and payment card competition
- Competing Technologies for Payments: ATMs, POS Terminals and the Demand for Currency
- Counterparty Risk, Impact on Collateral Flows, and Role for Central Counterparties
- Network and eigenvalue analysis of financial transaction networks
- Financial institutions and Market across Countries and over Time - Data Analysis
- The Topology of the Federal Funds Market
- The Economics of Clearing in Derivatives Markets: Netting, Asymmetric Information, and the Sharing of Default Risks Through a Central Counterparty
- Measuring Payment System Development
- The Role of Interbank Markets in Monetary Policy: A Model with Rationing
- Changes in the Timing Distribution of Fedwire Funds Transfers
- Global Trends in Large-Value Payments
- Intraday Liquidity Management: A Tale of Games Banks Play
- The Timing and Funding of CHAPS Sterling Payments
- Exploring agent-based methods for the analysis of payment systems: A crisis model for StarLogo TNG
- A Model of Tiered Settlement Networks
- Financial Dependence and Industry Growth in Europe: Better Banks and Higher Productivity
- The impact of reserves averaging on banks liquidity
- Transaction Pricing and the Adoption of Electronic Payments: A Cross-Country Comparison
- Operational Risk and Contagion in the Austrian Large-Value Payment System ARTIS
- Simulation studies of liquidity needs, risks and efficiency in payment networks
- Comparing the pre-settlement risk implications of alternative clearing arrangements
- A network analysis of the Italian overnight money market
- Uncollateralized Overnight Loans Settled in LVTS
- Payment instrument choice: The case of prepaid cards
- Liquidity, Risk Concentration and Network Structure in the Austrian Real Time Interbank Settlement System
- Trading strategies in the Italian interbank market
- Modelling the cross-border use of collateral in payment systems
- Systemic Risk in Alternative Payment System Designs
- Liquidity, risks and speed in payment and settlement systems – a simulation approach
- Analysing the impact of operational incidents in large-value payment systems: A simulation approach
- The relationship between the overnight interbank unsecured loan market and the CHAPS Sterling system
- Overnight Interbank Loan Markets
- Central counterparty clearing: constructing a framework for evaluation of risks and benefits
- The intraday liquidity management game
- Lending Relationships in the Interbank Market
- Liquidity Effects of the Events of September 11, 2001
- Liquidity, gridlocks and bank failures in large value payment systems
- Systemic risk, interbank relations and liquidity provision by the Central Bank
- The Timing and Funding of Fedwire Funds Transfers
- Are Banks Risk Averse? Intraday Timing of Operations in the Interbank Market
- The Microstructure of the Federal Funds Market
- An analysis of competitive externalities in gross settlement systems
- 29th September 2014
to 2nd October 2014
- Sibos 2014, Boston Convention & Exhibition Center, Boston, MA
- 3-4 April 2014
- "Economics of Payments VII" Call for papers
Organisers: Federal Reserve Bank of Boston
- 29-30 August 2013
- "11th Simulator Seminar - Quantitative analysis of the payments and securities settlement systems" Call for papers
Organisers: Bank of Finland, Helsinki
- Summer 2013
- 21th International Conference on Computing in Economics and Finance (CEF 2013)
Organisers: The Society for Computational Economics
- 28 Feb - 1 Mar 2013
- "Financial Inclusion Research Conference 2013" Call for papers
Organisers: The SWIFT Institute, The Ash Center for Democratic Governance and Innovation and The Mossavar-Rahmani Center for Business and Government (Harvard Kennedy School)
- 10-12 July 2013
- 19th International Conference on Computing in Economics and Finance (CEF 2013) including an invited session titled "Payment methods, payment systems and interbank money market from a network perspective"
Organisers: The Society for Computational Economics and Simon Fraser University - Canada
- 11-12 September 2013
- September 2013, four years after Pittsburgh: What has OTC derivatives reform achieved so far?
Organisers: ECB, Banque de France and Bank of England
- 21-22 Otocber 2013
- "Retail payments at a crossroads: economics, strategies, and future policies" Call for papers
Organisers: Banque de France and ECB – Paris
- 9 October 2012
- " Payment system monitoring indicators"
Organisers: Bank for International Settlements (BIS)
- 19-20 April 2012
- "Financial Infrastructures Research Conference 2012"
call for papers
Organisers: De Nederlandsche Bank (DNB) and Tilburg University
- 24-25 May 2012
Economics of Payments VI (call for papers) "
Organisers: The Bank of Canada
- 21-22 June 2010
- "Payment Markets: Theory, Evidence and Policy"
Organisers: The University of Granada and the Federal Reserve Bank of Chicago
- 1-2 April 2010
- "The Economics of Payments IV" (announcement)
Organisers: Federal Reserve Bank of New York and Federal Reserve Bank of Atlanta
- 2 October 2009
- "Payment Systems in a Changing Financial Environment (call for papers)"
Organisers: Purdue University and Federal Reserve Bank of New York.
- 24-25 September 2009
- "Recent Developments in Consumer Credit and Payments "
Organisers: Federal Reserve Bank of Philadelphia - Philadelphia.
- 25-26 May 2009
- "Retail Payments: Integration and Innovation"
Organisers: European Central Bank and De Nederlandsche Bank - Frankfurt am Main.
- 14-15 May 2009
- "Payments Pricing: Who Bears the Cost?"
Organisers: Federal Reserve Bank of Chicago - Chicago.
- 11-12 December 2008
- "Risk Transfer: Challenges for Financial Institutions and Markets"
Organisers: CFS, CEPR and Deutsche Bundesbank - Frankfurt am Main.
- 19-20 November 2008
- "Payment Economics: Theory and Policy"
Organisers: Organiser: Bank of Canada - Ottawa.
- 14-15 November 2008
- "Norges Bank Research Conference on Payments Systems"
Organiser: Norges Bank - Oslo.
Special conference on retail payment systems.
- 9-10 June 2008
- "Liquidity in Interdependent Transfer Systems"
Organisers: Banque de France and European Central Bank - Paris.
- 21-22 April 2008
- "The Safety and Efficiency of Post-Trading Arrangements in Europe"
Organisers: European Central Bank and European Commission - Frankfurt am Main.
- 12-13 November 2007
- "Payments and Monetary and Financial Stability"
Organisers: Bank of England and European Central Bank - Frankfurt am Main.