Tuesday, October 21, 2003

Can existing payment networks meet future needs?

This was the major question at a conferency by the Chicago Federal Reserve Bank.

The conference summary is available here.

What I appreciated in the summary:

Payment innovations may take longer to adopt than innovations in other industries because of the need to balance the interests of multiple agents—consumers, merchants, financial institutions, and networks. In addition, payment providers must often operate both legacy and new systems side by side, increasing costs in the short run.