Search Results
Briefing
Motives Matter: Examining Potential Tension in Central Bank Digital Currency Designs
As a new central bank liability, central bank digital currency (CBDC) has the potential to address various issues within current payments and financial systems. The motivation behind a CBDC will determine how it is designed; a CBDC designed to achieve one goal, such as broader financial inclusion, may have difficulty achieving other objectives.
Briefing
From Then to FedNow: Payments Innovation and the Federal Reserve
Since its founding, the Federal Reserve System has evolved its payments services to be responsive to changes in the industry and to meet the needs of its customers and the public generally. To be sure, episodes of tragedy and crisis can amplify the gaps in legacy systems and approaches, and the COVID-19 pandemic is no exception as it highlights shifting consumer payments preferences.
Briefing
Still on Trial? The Court’s Use of Economic Analysis in the American Express Case
In a 2018 antitrust case, the Supreme Court ruled that American Express did not break federal laws in prohibiting merchants from steering consumers to alternative payment methods. However, some antitrust scholars disagree with how the court defined the relevant market and determined anticompetitive effects, and are concerned that the decision will make it more difficult to bring antitrust cases against payment platforms in the future.
Briefing
Are Contactless Payments Finally Poised for Adoption?
Two types of contactless payments, near-field communication (NFC) and quick response (QR) code, have seen a boost from the COVID-19 pandemic.
Will Digital Wallets Replace Cash?
Dialogue with the Fed attendees hear about the opportunities and challenges involved with digital wallets like Venmo.
Briefing
Payments System Research: Our 2020 Vision
In this year’s first Payments System Research Briefing, senior vice president Susan Zubradt reflects on the evolution of retail payments and what lies ahead for the KC Fed’s Payments System Research group.
Journal Article
Policy Update: Does Phasing Out the Penny Make Cents?
The U.S. Mint began producing the penny more than 200 years ago. Since 1909, President Abraham Lincoln has been the face of the coin, though the penny has changed in appearance, size, and material over time. As the longest-tenured coin and lowest denomination in the United States, it's no surprise that the penny can be found in so many places: under couch cushions, in drawers, or, if lucky enough, on the ground facing heads up.
Journal Article
Cash or Debit Cards? Payment Acceptance Costs for Merchants
Fumiko Hayashi examines which of two payment methods—cash or debit cards—is more costly for merchants to accept in person in six countries: the United States, Australia, Canada, the Netherlands, Norway, and Sweden. She finds that debit cards have been more costly for merchants to accept than cash in the United States in recent years, while cash has become more costly to accept than debit cards in the other five countries. Two factors explain this difference. First, although interchange fees are just one component of merchants’ debit card acceptance costs, the fees alone are higher than ...
Speech
New perspectives on consumer behavior in credit and payments markets
Welcome Remarks Before the Eighth Biennial Research Conference Co-organized by the Research Department and Payment Cards Center
Briefing
In the Nick of Time: The Rise of Earned Wage Access
Fintech programs that provide employees access to earned wages ahead of payday have gained popularity during the COVID-19 pandemic. Although consumers benefit from greater financial flexibility, such programs may involve risks.