Abstract
We discuss the strategic approaches for promoting payment efficiency and innovations, including the minimalist, competitive and public service approaches. The cases show how strategies are developed under unique environments of advanced and emerging banking systems and compare the involvement of the central bank and the private sector in payment operations by illustrating how ownership, pricing policies, and cost recovery may vary, and how such factors may influence efficiency and innovation in terms of changes in paper-based and electronic payment market shares.
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Notes
- 1.
See Berg (1999) for a discussion of the minimalist approach in Nordic countries. For full details of country cases, see Executives’ Meeting of East Asia-Pacific Central Banks and Monetary Authorities (2002) for Australia; Goodlet (2001) and Anvari (1990) for Canada; and European Central Bank (2001) for Finland and the United Kingdom.
- 2.
See Regulations for Australian Paper Clearing System (APCA 1993), Regulations for Bulk Electronic Clearing System (APCA 1994), Regulations for Consumer Electronic Clearing Stream (APCA 2000), and Regulations for High-Value Clearing System (APCA 1997).
- 3.
See Department of Finance, By-law No. 2 Respecting Finance. Changes to the Financial By-law, and the structure of dues, would take effect on January 1, 2003. See http://www.cdnpay.ca for the Canadian Payments Act (revised 2001) and the new By-law.
- 4.
- 5.
 Total operating costs are based on cheque, ACH and funds transfer and settlement systems in each country. U.S. figures are based on the total cost for Federal Reserve cheque collection, funds transfer and settlement, and commercial ACH services in 2001. Thailand figures are based on Bank of Thailand operating costs for cheque and electronic payment services (Jitsuchon and Khiaonarong 2000). U.K. figures are based on payment industry cost for cheques and automated payments in 1994 (APACS 1996).
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Khiaonarong, T., Liebenau, J. (2009). Strategic Approaches to Payment Efficiency and Innovation. In: Banking on Innovation. Contributions to Economics. Physica-Verlag HD. https://doi.org/10.1007/978-3-7908-2333-2_3
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