Consumer Credit and Payment Cards

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The future of retail payments: opportunities and challenges Terms of use: Documents in CONFERENCE ON THE FUTURE OF RETAIL PAYMENTS: OPPORTUNITIES AND CHALLENGESThe way people pay is continuously changing, as a result of innovations in retail payments, improvements in efficiency and regulatory changes. This changing environment creates opportunities for some and challenges for others in the retail payments sector. The impact of these changes on the future of retail payments was the main theme of the biannual retail payments conference organised by the European Central Bank (ECB), this time in cooperation with the Oesterreichische Nationalbank The European Commission's proposal for a regulation setting an end date for migration to SEPA credit transfers and SEPA direct debits is welcomed. For SEPA to be a success, it is essential that users are involved, in order to ensure acceptance of the SEPA instruments. Moreover, innovations in retail payments are taking place more rapidly than ever, and payment service providers and regulators need to adapt quickly to this changing business environment.We would like to thank all participants in the conference for the very interesting discussions. In particular, we would like to acknowledge the valuable contributions and insights provided by all speakers, discussants, session chairpersons and panellists, whose names can be found in the conference programme.

Credit card payments: do cultural values matter? Evidence from the European Union

“…Indeed, even in some regions like North America with a traditional credit card market, there is no evident substitution effect between electronic payment instruments. These findings are supported by Bolt et al (2011) who advocate for the complementarity of credit and debit cards as payment instruments [7]. There is no robust relationship between the level of private consumption and the total value of credit payments; however, these payments are strongly correlated with the real EU GDP growth rate, showing strong context dependency, as this variable incorporates several macroeconomic shocks during the analyzed period.…”

“…Previous studies highlighted that various payment instruments have their transaction domain, with direct debits concentrated for large-value transactions, cash for low-value transactions and credit cards for larger values (Esselink and Hern andez (2017). However, as credit cards allow purchases that otherwise could have not been acquired, they play a complementarity role to debit cards, as supported by Bolt et al (2011). The models show the average value of credit card transactions was not related to the proportion of credit ownership among lower-income individuals.…”