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- W1981042936 abstract "This study employs a scissor-type modeling of supply and demand to compare the supply-demand curves associated with the payment mechanisms where credit cards and electronic money play as trading intermediaries with those associated with the traditional cash payment mechanism. Further, this study analyzes the conditions in terms of producer surplus and consumer surplus under which each payment mechanism would function, and then suggests some ideas of improvement for each payment mechanism. The findings indicate that higher interest rates of deposit, larger trading values and lower transaction costs would favor the use of credit cards as a payment mechanism. As for electronic money, very few merchants accept it for payment and thus such a mechanism does not work at present. To solve the issue, there must be plenty of merchants willing to install card readers to enable purchases with electronic money, and this will encourage consumers to purchase with electronic money to support the functioning of such payment mechanism. However, the electronic money will not work if transaction fees are too high." @default.
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- W1981042936 date "2010-07-01" @default.
- W1981042936 modified "2023-09-27" @default.
- W1981042936 title "The economic analysis of payment mechanisms" @default.
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- W1981042936 doi "https://doi.org/10.1080/02522667.2010.10699995" @default.
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