The retail payment industry is significant, affects every citizen and is a very precondition for a modern society based on the division of labor. It is characterized by two-sidedness, strong network effects, high fixed costs, high concentration and high profitability of successful firms,...

Using a survey of 39,507 adults in 17 euro-area countries, I find that crypto-asset owners and the niche subgroup of payers have distinct profiles. Owners - typically younger, male, and financially active - exhibit mixed preferences, valuing both cash-like privacy and card-like speed. Crypto...

We propose a theory of stablecoin disintermediation, whereby stablecoins not only erode banks' deposit franchises but also transmit liquidity stress to the banking system. Using transaction-level data linking onchain transactions to wholesale interbank payments, we document the first evidence of...

This paper provides the first causal estimate of the economic impact of interlinking payment systems across countries. We exploit a new dataset of payment systems interlinking initiatives, which identifies over 2,000 connections, and employ standard gravity methods to estimate their impact on...

Many Central banks around the world are considering the introduction of a Central Bank Digital Currency (CBDC) as a new means of payment. One of the reasons for introducing a CBDC is a change in payment behavior towards an increasing use of electronic forms of payment. This paper examines the...

This paper analyses the role of layering in the architecture of money and payment systems and how recent technological innovations affect it. Layering in payments, whereby payment ledgers are hierarchical to each other, and senior ledgers allow for interoperability between junior ledgers, has...

This paper investigates the degree to which merchants influence consumers' choice of how they pay for transactions. Using data from the Survey and Diary of Consumer Payments Choice, we examine consumers' adherence to their preferred payment method when making in-person transactions. We also...

Programmability is at the heart of ongoing work on the future of money and payments by central banks around the world. Despite its potential, there is growing concern that programmability conflicts with the provision of "good" money. This paper overviews key principles of "good" money and argues...

Cross-country evidence finds that there are low levels of financial literacy. Financial literacy is often measured using the "Big Three" questions about interest rates, inflation, and risk. These questions are usually part of a longer survey. Respondents in long surveys may suffer survey fatigue...

This article examines the EU-law challenges arising from the use of artificial intelligence for payment initiation and execution (“Payment Agents”) under European Union law. It focuses on Payment Agents that support purchasing workflows and are capable of initiating payments in both...

We study competition between a welfare-maximizing public platform and a profit-maximizing private platform in a two-sided payment market. We characterize the public platform's optimal pricing and show that it balances the benefits of increased competition against the welfare costs of network...

Financial market infrastructures (FMIs) must remain secure, resilient and adaptable over long horizons, even as payment volumes grow and technologies, standards and threat environments evolve. The continued expansion of digital payments, alongside emerging models such as Internet of Things...

This paper challenges the widespread public and institutional misconception that legal tender laws in English law compel creditors to accept payment in a specific form. We argue that legal tender is a narrow, procedural artefact with diminishing practical relevance. Through an analysis of...

Previous research suggests that lower-income Canadians may have unique experiences with the use of payments, including the use of cash and digital payments. We conduct a case study using data from the Canadian Financial Diaries (CFD) project to gain insight into how some lower-income Canadians...

This paper analyzes the affordability of cash in an international context. After outlining why cash should remain a core component of a diversified payment mix within a resilient and efficient payment system, we discuss methodological challenges associated with measuring the costs of payment...

Project Samara was a limited, real world experiment designed to evaluate the use of distributed ledger technology (DLT) and wholesale central bank digital money (W CAD) in Canadian capital markets. The project involved the issuance of a single tokenized bond by Export Development Canada to a...

This paper investigates the degree to which merchants influence consumers' choice of how they pay for transactions. Using data from the Survey and Diary of Consumer Payments Choice, we examine consumers' adherence to their preferred payment method when making in-person transactions. We also...

Identifying critical participants is important for central banks as operators and overseers of payment systems. The binary decision about criticality is not evident, as there are no common criteria that define it. This paper introduces a novel approach using the example of TARGET2 for tackling...

The World Bank's Fast Payment Systems (FPS) Toolkit, supported by the Gates Foundation, is a comprehensive resource designed to guide countries and regions in their policy and implementation choices as they develop fast payment systems. Available at fastpayments.worldbank.org, the toolkit...

Purpose Traditional payment systems based on cash and bank cards are being replaced by new innovative formats. This research analyzes the success factors in the adoption by customers of Bizum, a peer-to-peer (P2P) mobile payment system widely used in Spain. This study proposes a theoretical...

Most countries in Latin America and the Caribbean are implementing fast payment systems (FPS), often with the goal of enhancing access to and use of affordable financial services. FPS offer immediate transfer of funds on a 24x7 basis between end users. This paper assesses how FPS can promote...

This paper examines the transition from exclusive card network-acquirer relationships to a multi-acquiring model. Using the case of Uruguay's adoption of multi-acquiring in 2022, as part of a broader financial inclusion program, we document significant market dynamics, including restructured...

Forecasting banking system liquidity is crucial for the effective monetary policy implementation. This study investigates the effectiveness of various econometric and machine learning models in predicting the autonomous factors of banking system liquidity. The research compares widely used...

Inadequate financial literacy and overconfidence in financial knowledge, coupled with the use of mobile payments (MPs), may contribute to harmful financial behaviors. While the relationship between financial knowledge confidence and financial behaviors is well documented, there is limited...

Payment costs for consumers are difficult to determine, are not recorded in an internationally harmonized manner and vary significantly from country to country. They are incurred in many forms, for example as fees for account management, for cash withdrawals at ATMs or for payment cards; but...

Convenience and security are the two key attributes that consumers consider when choosing between payment technologies. We examine how consumers react to an exogenous change to the convenience and security of digital payments. We study an increase in the 'tap-and-go' limit for contactless...

We field a series of experiments in a population-representative survey of European consumers to examine their attitudes towards the possible introduction of a digital euro. First, we show that a short video explaining the key features of the digital euro is effective in changing consumers'...

With the rapid digitization of financial transactions, central banks have given considerable focus in recent years to the research and development of central bank digital currencies (CBDCs). While CBDCs could offer several advantages, there are concerns about end-user privacy. Traditional...

This study examines how financial sector development mediates the relationship between digital payments and money laundering. The current study relies on a sample of 120 countries, including both developed and developing economies, for the years 2014, 2017, and 2021. The findings reveal that...

Central Bank Digital Currencies are gaining substantial attention globally as central banks explore the design and implementation of digital currencies. This study examines the design considerations of Central Bank Digital Currencies (CBDCs) and their potential impact on India's financial...