The Changing Retail Payments Landscape: What Role for Central Banks?



 
The conference was held at the Federal Reserve Bank of Kansas City, November 9-10, 2009, in Kansas City, Missouri. 
Retail payments systems around the world have entered a period of dramatic change. This conference explored the changing retail payments landscape and assessed the extent to which central bank payments policies should correspondingly be altered. The conference brought together three principal audiences – industry participants, policy makers, and academics – for an exchange of views and thoughts. Questions addressed included: How do payments markets differ from other markets? How do consumer preferences impact industry outcomes? Are payments markets sufficiently competitive and safe? If not, what private and public policies would be beneficial? Should central bank policies to ensure smoothly-functioning payments systems be adapted in light of the dynamic changes underway? More specifically, what role should central banks play as operators and overseers in the retail payments system of the future.

 

2009 Conference Proceedings

Foreword

Contributors

Thomas M. Hoenig
President and Chief Executive Officer, Federal Reserve Bank of Kansas City

 

Conference Summary Bruce Summers
Former Director, Federal Reserve Information Technology
 
Keynote Address

| Keynote | General Discussion |

Keynote Address

Dan Hesse
Chief Executive Officer, Sprint Nextel Corporation
Session 1: The Changing Retail Payments Landscape: An Overview
| Paper | Commentary | General Discussion | 

Author
Harry Leinonen 
Advisor to the Board, Financial Markets and Statistics, Bank of Finland
Discussant
Tony Hayes 
Partner, Oliver Wyman Group
Session 2: Determinants of Consumer Payments Usage
| Paper | Commentary | General Discussion |

Author
Marc Rysman
Associate Professor of Economics, Boston University
Discussant
Kylie Smith 
Manager, Payments Policy, Reserve Bank of Australia
Session 3: Economics of Payments Markets
| Paper | Commentary | General Discussion |

Author
Sujit Chakravorti
Senior Economist, Federal Reserve Bank of Chicago
Discussant
Dennis Carlton
Professor of Economics, University of Chicago
Session 4: Implications of the Changing Payments Landscape for Competition and Efficiency of Retail Payments Systems
| Panel Discussion | General Discussion |

Moderator
Wiebe Ruttenberg
Head of Market Integration Division, DG Payments and Market Infrastructure, European Central Bank
Panelists
Matthew Bennett
Director of Economics, UK Office of Fair Trading
Gwenn Bézard
Co-founder and Research Director, Aite Group
Dickson Chu
Vice President of Global Product and Experience, PayPal
Adam Levitin
Professor, Georgetown Law School
Session 5: Implications of the Changing Payments Landscape for Integrity of Retail Payments Systems
| Panel Discussion | General Discussion |

Moderator
Mark Greene
Chief Executive Officer, FICO
Panelists
Cathy Allen
Chairman and Chief Executive Officer, The Santa Fe Group
Daniel Eckert
Senior Vice President, HSBC Card and Retail Services
Paola Masi
Head of Payments Division, Bank of Italy
James Van Dyke
President, Javelin Strategy and Research
Session 6: The Future Role of Central Banks in Retail Payments: The Central Bank as Operator
| Paper | Commentary | General Discussion |

Authors
Richard Oliver
Executive Vice President and Retail Payments Product Manager, Federal Reserve Bank of Atlanta
Stuart E. Weiner
Vice President and Director of Payments System Research, Federal Reserve Bank of Kansas City
Discussant

Joshua Peirez 
Group Executive, Innovative Platforms Global Products and Solutions, MasterCard Worldwide

Session 7: The Future Role of Central Banks in Retail Payments: The Central Bank as Overseer
| PaperCommentary | General Discussion |

Authors
Ron Berndsen
Head, Oversight Department, De Nederlandsche Bank
Bouke Buitenkamp
Overseer Retail Payments, Oversight Department, De Nederlandsche Bank
Jonathan Williams 
Director of Strategic Development, Experian Payments
Session 8: Conference Wrap-Up
| Paper | General Discussion |

Conference Wrap-up

Bruce Summers
Former Director, Federal Reserve Information Technology

Conference Attendees