Retail Payments Strategy for the EU versus the Challenges of the Payment Sector

• Autorzy: Michał Polasik , Paweł Widawski , Grzegorz Keler , Agnieszka Butor-Keler
• Języki publikacji: EN

Abstrakty

EN

Motivation: The payment services sector has become one of the main areas for the development of financial innovation and the key element of the digital economy. However, the payment services market in the European Union (called the European Payments Market) is still fragmented along national borders, insufficiently integrated, and facing several challenges. Therefore, the newly announced Retail Payments Strategy for the EU is a document of great importance for the future of the entire EU economy, and deserves in-depth study. Aim: The purpose of this paper is to assess whether the trends and challenges identified by the European Commission in the Retail Payments Strategy, and the general directions and proposed actions presented in this document, appropriately reflect the challenges faced by the European payment market. Results: A comparative analysis of the Strategy's assumptions and proposed actions was conducted, in relation to the identified challenges of the payment sector. The empirical data were derived from a survey of 202 experts from all EU member states, and the UK, Norway and Switzerland, covering all types of bank and non-bank payment market players. The analysis confirmed that the Strategy identified the main challenges and opportunities, in line with the results of the expert survey: the need for further development of open banking; cross-border integration and development of instant payments systems; and ensuring access to the banking payment infrastructure, including contactless and NFC mobile payments. However, the proposed directions of action in selected areas have not been sufficiently rationalised, and most of the actions have been left to be specified in the future. In addition, the Strategy relies mostly on the use of regulatory tools that may limit innovativeness. Although the Commission and the surveyed experts agreed in recognising the challenges related to the increasing role of BigTechs in the payment sector, no comprehensive solution addressing the related challenges was proposed in the Strategy. (original abstract)

Słowa kluczowe

EN

Payment; Banking

PL

Płatność; Bankowość

• Czasopismo: Ekonomia i Prawo
• Rocznik: 2021
• Tom: 20
• Numer: nr 3
• Strony: 617--640

Twórcy

autor

Michał Polasik

• Nicolaus Copernicus University in Toruń, Poland

autor

Paweł Widawski

• University of Warsaw

autor

Grzegorz Keler

• Nicolaus Copernicus University in Toruń, Poland

autor

Agnieszka Butor-Keler

• SGH Warsaw School of Economics

Bibliografia

• Basel Committee on Banking Supervision. (2019). Report on open banking and application programming interfaces. Retrieved 13.07.2021 from https://www.bis.org/bcbs/publ/d486.pdf.
• Bech, M., & Hancock, J. (2020). Innovations in payments. BIS Quarterly Review, March, 1-16.
• Beck, T., Casu, B. (Eds.). (2016). The Palgrave handbook of European banking. Palgrave Macmillan. https://doi.org/10.1057/978-1-137-52144-6.
• Blind, K., Petersen, S.S., & Riillo, C.A.F. (2017). The impact of standards and regulation on innovation in uncertain markets. Research Policy, 46(1), 249-264. https://doi.org/10.1016/j.respol.2016.11.003.
• Butor-Keler, A., Polasik, M. (2020). The role of regulatory sandboxes in the development of innovations on the financial services market: the case of the United Kingdom. Ekonomia i Prawo. Economics and Law, 19(4), 621-638. https://doi.org/10.12775/EiP.2020.041.
• Commission Delegated Regulation (EU) 2018/389 of 27 November 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication (OJ L 69, 13.3.2018).
• Commission Recommendation 97/489/EC of 30 July 1997 concerning transactions by electronic payment instruments and in particular the relationship between issuer and holder (OJ L 208, 2.8.1997).
• Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a digital finance strategy for the EU (COM/2020/591 final) [Digital Finance Strategy, 2020].
• Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on a retail payments strategy for the EU (COM/2020/592 final) [Strategy, 2020].
• Consolidated version of the Treaty on the Functioning of the European Union (OJ C 326, 26.10.2012).
• Crisanto, J.C., Ehrentraud, J., & Fabian, M. (2021). Big techs in finance: regulatory approaches and policy options. FSI Briefs, 12, 1-15.
• Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market amending Directives 97/7/EC, 2002/65/EC, 2005/60/EC and 2006/48/EC and repealing Directive 97/5/EC (OJ L 319, 5.12.2007) [PSD1, 2007].
• Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015). [PSD2, 2015].
• Directive 97/5/EC of the European Parliament and of the Council of 27 January 1997 on cross-border credit transfers (OJ L 43, 14.2.1997).
• Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998).
• Drasch, B.J., Schweizer A., & Urbach N. (2018). Integrating the 'troublemakers': a taxonomy for cooperation between banks and fintechs. Journal of Economics and Business, 100, 26-42. https://doi.org/10.1016/j.jeconbus.2018.04.002.
• ECB. (2020). ECB takes steps to ensure pan-European reach of instant payments. Retrieved 23.08.2021 from https://www.ecb.europa.eu/paym/intro/news/html/ecb.mipnews200724.en.html.
• European Banking Federation. (2021). Structure of the banking sector. Retrieved 13.07.2021 from https://www.ebf.eu/facts-and-figures/structure-of-the-banking-sector.
• European Commission. (2018). Internet banking on the rise. Retrieved 13.07.2021 from https://ec.europa.eu/eurostat/web/products-eurostat-news/-/DDN-20180115-1.
• European Payments Council. (2018). Summary of the API evaluation workshop. Retrieved 23.08.2021 from https://www.europeanpaymentscouncil.eu/sites/default/files/kb/file/2018-04/API%20EG%20019-18%20v1.1%20Summary%20of%20the%20API%20Evaluation%20Workshop%20-%2020180228.pdf.
• Kim, Y., Pakr, Y.-J., Choi, J., & Yeon, J. (2015). An empirical study on the adoption of "fintech" service: focused on mobile payment services. Advanced Science and Technology Letters, 114, 136-140. http://dx.doi.org/10.14257/astl.2015.114.26.
• Leong, K., & Sung, A. (2018). FinTech (financial technology): what is it and how to use technologies to create business value in fintech way. International Journal of Innovation, Management and Technology, 9(2), 74-78. https://doi.org/10.18178/ijimt.2018.9.2.791.
• Lu, L. (2017). Financial technology and challenger banks in the UK: gap fillers or real challengers. Journal of International Banking Law and Regulation, 32(7), 273-282.
• Mavromati, D. (2008). The law of payment services in the EU: the EC directive on payment services in the internal market. Wolters Kluwer.
• Nguyen, H.L.Q. (2019). Are credit markets still local: vidence from bank branch closings. American Economic Journal: Applied Economics, 11(1), 1-32, https://doi.org/10.1257/app.20170543.
• OECD. (2020). Digital disruption in banking and its impact on competition. Retrieved 13.07.2021 from https://www.oecd.org/competition/digital-disruption-in-banking-and-its-impact-on-competition-2020.pdf.
• Petrović, M. (2020). PSD2 influence on digital banking transformation: bank's perspective. Journal of Process Management: New Technologies, International, 8(4), 1-14.
• Polasik, M., Huterska, A., Iftikhar, R., Mikula, Š. (2020). The impact of Payment Services Directive 2 on the PayTech sector development in Europe. Journal of Economic Behavior & Organization, 178, 385-401. https://doi.org/10.1016/j.jebo.2020.07.010.
• Regulation (EC) No 2560/2001 of the European Parliament and of the Council of 19 December 2001 on cross-border payments in euro (OJ L 344, 28.12.2001).
• Regulation (EC) No 924/2009 of the European Parliament and of the Council of 16 September 2009 on cross-border payments in the Community and repealing Regulation (EC) No 2560/2001 (OJ L 266, 9.10.2009).
• Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card-based payment transactions (OJ L 123, 19.5.2015).
• Regulation (EU) 2019/518 of the European Parliament and of the Council of 19 March 2019 amending Regulation (EC) No 924/2009 as regards certain charges on cross-border payments in the Union and currency conversion charges (OJ L 91, 29.3.2019).
• Regulation (EU) No 260/2012 of the European Parliament and of the Council of 14 March 2012 establishing technical and business requirements for credit transfers and direct debits in euro and amending Regulation (EC) No 924/2009 (OJ L 94, 30.3.2012).
• Rochet, J.-C., & Tirole, J. (2003). Platform competition in two-sided markets. Journal of the European Economic Association, 1(4), 990-1029. https://doi.org/10.1162/154247603322493212.
• Romanova, I., Grima S., Spiteri, J., & Kudinska, M. (2018). The Payment Services Directive II and competitiveness: the perspective of European fintech companies. European Research Studies Journal, 21(2), 3-22. https://doi.org/10.35808/ersj/981.
• Schueffel, P. (2017). The concise fintech compendium. School of Management Fribourg.
• Stulz, R.M. (2019). FinTech, BigTech and the future of banks. NBER Working Paper Series, 26312, 1-26. https://doi.org/10.3386/w26312.
• The Berlin Group. (2021). PSD2 access to bank accounts. Retrieved 23.08.2021 from https://www.berlin-group.org/psd2-access-to-bank-accounts.
• The Global Treasurer. (2005). Payments of the future and the future of payments. Retrieved 23.08.2021 from https://www.theglobaltreasurer.com/2005/10/25/payments-of-the-future-and-the-future-of-payments.
• Ustawa z dnia 19 sierpnia 2011 r. o usługach płatniczych [Act of 19 August 2011 on payment services] (Dz.U. 2011 nr 199 poz. 1175) (Poland).
• Zalcewicz, A. (2011). Proces integracji europejskiego rynku usług płatniczych: wyzwania regulacyjne. Ekonomia i Prawo. Economics and Law, 7(1), 321-340. https://doi.org/10.12775/EiP.2011.020.

Identyfikatory

DOI

https://doi.org/10.12775/EiP.2021.037