2009 Payments Conference — Payments Pricing: Who Bears the Cost?

As consumers and merchants increasingly adopt electronic payments, the pricing of these services has generated substantial scrutiny around the world. Some public authorities have directly intervened in the payments market. Others have relied more heavily on the private market to develop payments pricing strategies. Moreover, innovative vehicles and business models may increase competition, resulting in greater choice to payment system participants. However, these products may not provide the same benefits as traditional debit and credit cards. In light of these developments, the Federal Reserve Bank of Chicago hosted its ninth annual Payments Conference, Payments Pricing: Who Bears the Cost? During this two-day event held at the Chicago Fed on May 14-15, 2009, we focused on:

  • Evaluating the role of public intervention;
  • Comparing perspectives on market-based solutions;
  • Offering incentives to affect payments behavior;
  • Leveraging technology to increase competition; and
  • Developing future payment pricing strategies.

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8:30 AM
Registration & Continental BreakfastThird Floor Conference Center
9:30 AM
Introduction & WelcomeThird Floor Conference Center
Gordon Werkema, First Vice President and Chief Operating Officer, Federal Reserve Bank of Chicago
9:45 AM
Understanding How Payments Revenues and Consumer Choices Are MadeThird Floor Conference Center
David Stewart, Senior Expert, McKinsey & Company
10:30 AM
Examples of Public InterventionThird Floor Conference Center
  • When should public authorities intervene in payment markets?
  • What are the costs and benefits of your regulations on pricing of payment instruments?
  • How do you balance private sector incentives to innovate with regulating payment services to improve consumer and merchant welfare?
Wilko Bolt, Senior Economist, De Nedelandsche Bank
John Simon, Chief Manager, Payments Policy Department, Reserve Bank of Australia
Joe Negrin, Senior Economist, Banco de Mexico
Jean Alix, Principal Administrator, European Commission
12:00 PM
LuncheonThird Floor Conference Center
1:30 PM
Comparing Perspectives on Market-Based Solutions
  • What are the challenges to pricing payments and how are they most effectively addressed?
  • How do security and consumer protection issues influence payments pricing?
  • How should industry players work with public authorities on these issues?
Duncan Douglass, Partner, Alston & Bird LLP
Wendy Sutton, Assistant Vice President & Director, Credit and Check Programs, The TJX Companies
Jean Ann Fox, Director of Financial Services, Consumer Federation of America
Josh Peirez, Group Executive, Innovation Platforms, Mastercard Worldwide
Michael A Cook, Vice President and Assistant Treasurer, Wal-Mart Stores, Inc.
3:15 PM
3:30 PM
Innovative Business StrategiesThird Floor Conference Center
  • What factors most affect profitability of payments strategies?
  • How do smaller institutions define their role in the provision of payments services?
  • How do consumers and businesses react to incentives?
Gene Amromin, Senior Financial Economist, Federal Reserve Bank of Chicago
Gloria Colgan, Senior Vice President, Marketing & Financial Institutions, Discover Network
Dwaine Kimmet, Vice President, Financial Services, The Home Depot
Steve Streit, Chief Executive Officer and Founder, Green Dot Corp
Steve Mott, Principal, BetterBuyDesign
5:00 PM
ReceptionThird Floor Conference Center
7:45 AM
Registration & Continental BreakfastThird Floor Conference Center
8:45 AM
IntroductionThird Floor Conference Center
David Marshall, Senior Vice President, Federal Reserve Bank of Chicago
9:00 AM
Emerging Payments MediaThird Floor Conference Center
  • How are business models different for emerging payments?
  • Do new technologies provide price incentives for payments participants?
  • In what ways do new payments vehicles threaten legacy systems?
Richard Oliver, Executive Vice President, Federal Reserve Bank of Atlanta
Dickson Chu, Vice President, Global Product & Experience, PayPal
Scott Grimes, Chief Executive Officer, Cardlytics
Richard Crone, Chief Executive Officer and Founder, Crone Consulting, LLC
10:30 AM
BreakThird Floor Conference Center
10:45 AM
The Future of PaymentsThird Floor Conference Center
  • What will be the two most important pricing issues in the payments market over the next three years?
  • What is the future role of public policy in payments?
  • Is the market better suited to address pricing challenges, and if so, what are the most effective market-based solutions?
Sujit Chakravorti, Senior Economist, Federal Reserve Bank of Chicago
Eric Grover, Principal, Intrepid Ventures
Adam Levitin, Associate Professor of Law, Georgetown University Law Center
Mallory Duncan, Senior Vice President and Chief Counsel, National Retail Federation
Tom Brown, Partner, O'Melveny & Myers
12:30 PM
LunchThird Floor Conference Center

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Background Information

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