Payment Markets: Theory, Evidence and Policy

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.


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9:00 AM
Welcome and Introduction
, 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
12:15 PM
Single Euro Payments Area: Policy Issues
, University of Granada and Federal Reserve Bank of Chicago
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
Agustín Marquez, Confederacion Española de Cajas de Ahorros (CECA — Spanish Confederation of Savings Banks)
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
, 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
12:00 PM
Payment Cards Development: Implementation Issues
Wilko Bolt, De Nederlandsche Bank
Luke Olbrich, MasterCard Europe
Jeremy Nicholds, VISA Europe
Martin Weiderstrand, IKEA
2:00 PM
3:30 PM
SEPA in Spain: Challenges and Opportunities
Sergio Gorjón, Bank of Spain
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

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Conference papers and presentations are now available.

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