E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems

• Estimating the Costs of Electronic Retail Payment Networks: A Cross-Country Meta Analysis

  Staff Discussion Paper 2025-17 Cam Donohoe, Youming Liu

  We explore how many electronic funds transfer (EFT) systems can viably coexist within a jurisdiction at efficient scale by estimating the cost curve of the average EFT. We estimate the marginal cost to be approximately $0.55 per transaction, and the fixed cost to be approximately $83 million per year.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Financial institutions, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E58, H, H5, H54