The effect of transaction pricing on the adoption of electronic payments: a cross-country comparison

Pricing should speed up the substitution of low cost electronic payments for expensive paper-based transactions and cash. But by how much? Norway has explicitly priced individual payment transactions and rapidly shifted to electronic payments while the Netherlands has experienced the same shift without direct pricing. Controlling for differences between countries, the authors estimate the incremental effect of pricing on the shift to electronic payments. If users strongly value the improved convenience or security of electronic payments, pricing—viewed negatively by most consumers—may not be necessary to ensure rapid adoption of electronic payments. ; Also issued as Payment Cards Center Discussion Paper No. 05-18Electronic funds transfers ; Prices

Transaction Pricing and the Adoption of Electronic Payments: A Cross-Country Comparison

After safety, the efficiency of a nation's payment system is a primary concern of central banks. Since electronic payments are typically cheaper than paper-based or cash payments, pricing these transactions should speed up the shift to electronics. But by how much? Norway explicitly priced point-of-sale and bill-payment transactions and rapidly shifted to electronic payments, while the Netherlands experienced a similar shift without pricing. Controlling for terminal availability and differences between countries, direct pricing accelerated the shift to electronics by about 20 percent. The quid pro quo was the elimination of bank-float revenues.

The Effect of Transaction Pricing on the Adoption of Electronic Payments: A Cross-Country Comparison

Pricing should speed up the substitution of low cost electronic payments for expensive paper-based transactions and cash. But by how much? Norway has explicitly priced individual payment transactions and rapidly shifted to electronic payments while the Netherlands has experienced the same shift without direct pricing. Controlling for differences between countries, we estimate the incremental effect of pricing on the shift to electronic payments. If users strongly value the improved convenience or security of electronic payments, pricing-viewed negatively by most consumers-may not be necessary to ensure rapid adoption of electronic payments.electronic payments; transaction pricing; demand elasticity; social benefits

How to Strengthen Fiscal Surveillance Towards a Medium-Term Focus?

All EU member states have frameworks with a horizon for fiscal policy making beyond the annual budgetary calendar. These medium-term frameworks differ across countries both in terms of their set-up and stringency. Against this backdrop, the main objective of this paper is to identify best practices for medium-term targets and their binding nature. This paper assesses the characteristics and pre-conditions of effective medium-term frameworks in the EU, drawing from national experiences. This contribution is particularly relevant in the context of the Recovery and Resilience Facility since its implementation is expected to result in a significant increase in investment projects over the next three years. Moreover, special attention will be given to the contribution of Independent Fiscal Institutions (IFIs) to fiscal discipline. Finally, the paper presents preliminary findings on how to strengthen the medium-term orientation of the budgetary frameworks