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Payment Markets: Theory, Evidence and Policy

  • Overview
  • Speakers
  • Agenda
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  • Conference Materials
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foreign and us currency

The University of Granada and the Federal Reserve Bank of Chicago co-sponsored an international conference on Payment Markets: Theory, Evidence, and Policy. Electronic payments such as payment cards continue to replace cash as the preferred payment instrument around the world. However, their underlying pricing policies have been questioned in many countries. Other forces such as the increasing domestic and international competition between payment platforms, the integration of payment markets in Europe within the single euro payments area (SEPA) and fraud mitigation are shaping the retail payment systems of the future. The objective of this international conference was to stimulate discussion among academics, policymakers and practitioners regarding the economics of payment systems. The conference took place at the Abades Nevada Palace Hotel in Granada, Spain, on June 21-22, 2010.

 

Scientific and Organizing Committee

  • Santiago Carbó-Valverde, University of Granada and Federal Reserve Bank of Chicago
  • Wilko Bolt, De Nederlandsche Bank
  • Sujit Chakravorti, Federal Reserve Bank of Chicago
  • Heiko Schmiedel, European Central Bank
  • Francisco Rodríguez Fernández, University of Granada

 

Links to conference papers and presentations are now available under Conference Materials.

 

06/21/10
9:00 AM
Welcome and Introduction

Rector, University of Granada


Santiago Carbó-Valverde, University of Granada and Federal Reserve Bank of Chicago


Sujit Chakravorti, Federal Reserve Bank of Chicago


9:15 AM
Keynote Address

  • Collateral Damage: The Implication of Financial Crises for payment regulation
    • Charles Kahn, University of Illinois at Urbana-Champaign
10:00 AM
Academic Panel I: Payment Instruments Adoption

  • ATM Direct Charging Reform: The Effect of Independent Deployers on Welfare
    • Jocelyn Donze, Toulouse School of Economics
    • Isabelle Dubec, Toulouse School of Economics

  • Transparent Price Competition or Two-sided Subsidization in Card Payments?
    • Harry Leinonen, Bank of Finland

  • Competing Technologies for Payments and the Demand for Currency
    • Santiago Carbó-Valverde, University of Granada and Federal Reserve Bank of Chicago
    • Francisco Rodríguez Fernández, University of Granada
11:45 AM
Break
12:15 PM
Single Euro Payments Area: Policy Issues

Moderator

Santiago Carbó-Valverde , University of Granada and Federal Reserve Bank of Chicago



Panelists

Pierre Petit, Payments and Market Infrastructure, European Central Bank


Javier Palmero, DG Market, European Commission


Imfried Schwimann, DG Comp, European Commission


Gerard Hartsink, ABN Amro and European Payments Council


2:00 PM
Keynote Address

  • Digitization of Retail Payments
    • Sujit Chakravorti, Federal Reserve Bank of Chicago
4:00 PM
Academic Panel II: Payment Cards and Welfare

Chair and Discussant

Phil Molyneux, Bangor Business School



  • Who Gains and Who Loses from Credit Card Payments? Theory and Calibrations
    • Scott Schuh, Federal Reserve Bank of Boston
    • Oz Shy, Federal Reserve Bank of Boston
    • Joanna Stavins, Federal Reserve Bank of Boston

  • Credit Card Use after the Final Mortgage Payment: Does the Magnitude of Income Shocks Matter?
    • Barry Scholnick, University of Alberta

  • Return to Retail Banking and Payments
    • Iftekhar Hasan, Rensselaer Polytechnic Institute
    • Heiko Schmiedel, European Central Bank
    • Liang Song, Rensselaer Polytechnic Institute
7:30 PM
Keynote Address

  • Efforts to Expand Sales Using Reward Programs
    • David Humphrey, Florida State University
8:30 PM
Gala Dinner

Address

Agustín Marquez, Confederacion Española de Cajas de Ahorros (CECA — Spanish Confederation of Savings Banks)


06/22/10
9:30 AM
Keynote Address

  • New Directions in Payment Research
    • Marc Rysman, Boston University
10:15 AM
Academic Panel III: Payment Behavior

Chair and Discussant

Heiko Schmiedel, European Central Bank



  • Payment Behavior in Germany
    • Andreas Hoffmann, Deutsche Bundesbank
    • Heike Wörlen, 
    • Andrea Friedrich, Deutsche Bundesbank
    • Nadine Knaust, Deutsche Bundesbank
    • Ulf von Kalckreuth, Deutsche Bundesbank
    • Tobias, Deutsche Bundesbank

  • The Safety of Cash and Debit Cards: A Study on the Perception and behavior of Dutch Consumers
    • Anneke Kosse, De Nederlandsche Bank

  • Price Structure and Willingness to Pay in Network Industries: Evidence from Payment Cards
    • Santiago Carbó Valverde, University of Granada and Federal Reserve Bank of Chicago
    • José Manuel Liñares Zegarra, University of Alicante
    • Francisco Rodríguez Fernández, University of Granada
11:30 AM
Break
12:00 PM
Payment Cards Development: Implementation Issues

Moderator

Wilko Bolt, De Nederlandsche Bank



Panelists

Luke Olbrich, MasterCard Europe


Jeremy Nicholds, VISA Europe


Martin Weiderstrand, IKEA


2:00 PM
Lunch
3:30 PM
SEPA in Spain: Challenges and Opportunities

Moderator

Sergio Gorjón, Bank of Spain



Panelists

Javier Santamaría, Banco Santander and European Payment Council


Manuel Varela, DG Treasury and Financial Policy, Spanish Ministry of Economy


José Carlos Cuevas, Alstom and EACT


5:00 PM
Academic Panel IV: Payment Card Pricing

Chair and Discussant

Scott Schuh, Federal Reserve Bank of Boston



  • Card Acceptance and Surcharging: The Role of Costs and Competition
    • Nicole Jonker, De Nederlandsche Bank

  • Surcharging and Merchant Market Power
    • Malte Krueger, Goethe University Frankfurt

  • Interchange Fees and Inefficiencies in the Substitution between Payment Cards and Cash
    • Marianne Verdier, Université Paris Ouest Nanterre
6:15 PM
Concluding Remarks

 

 

 

Last Updated: 06/16/2010

Conference papers and presentations are now available.

  • Conference Papers and Presentations
Event Information
Date
06/21/10 - 06/22/10
Location
Abades Nevada Palace Hotel
C/ de la Sultana 3
18008 Granada, Spain
Event Contact
Sujit Chakravorti
(312) 322-8473
E-Mail

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