Nonbanks are becoming increasingly prominent in payments systems around the world. What are the implications of this heightened presence for innovation, competition, and risk? This international conference brought together three principal audiences - industry participants, academics, and public authorities - for an exchange of views and thoughts. The following issues were addressed: What activities do banks and nonbanks perform in payments? How has rising nonbank participation affected product innovation and market competition in the payments industry? Do banks and nonbanks compete on a level playing field? Is the current supervisory framework over bank and nonbank payment service providers adequate to control risk? What role should public authorities play in overseeing retail payments in light of changing technologies and changing industrial structures? ; The conference was held at the La Fonda Hotel, May 2-4, 2007, in Santa Fe, New Mexico.