We estimate private costs in the Swedish banking sector for the production of payment services and investigate to what extent the price structure reflects the estimated cost structure. We find that (i) banks tend to use two-part tariffs but (ii) variable costs are poorly reflected in transaction...

Rapid innovation is changing the array of financial services and payment options available to customers. To examine the driving forces behind the surge of innovation and the adoption of new technology, the Payment Cards Center and the Research Department of the Federal Reserve Bank of...

We estimate private costs in the Swedish banking sector for the production of payment services and investigate to what extent the price structure reflects the estimated cost structure. We find that (i) banks tend to use two-part tariffs, but (ii) variable costs are poorly reflected in...