The Pricing Of Payments
The pricing of payments has received increasing attention of regulators. In many cases, regulators are concerned that consumers do not face cost based prices. They argue that without cost based prices consumers will make inefficient choices. In this paper, it is argued that both, economics of scale and the particular laws governing pricing in two-sided markets provide a case against cost based pricing. Traditionally, central banks have played two roles in the payments system. They have been offering certain payment services themselves (mostly settlement and possibly clearing services) and they have been overseeing the participants in the payment system.