Skip to main content
Disciplines
Automotive Business IT + Informatics Construction + Real Estate Electrical Engineering + Electronics Energy + Sustainability Insurance + Risk Finance + Banking Management + Leadership Marketing + Sales Mechanical Engineering + Materials
Events
DE
EN
Books
Journals
Topic Page
Marketing
Start single access now
Access for companies
EXTENDED SEARCH
Log in
Top
Published in:
Blockchain and Other Distributed Ledger Technologies, an Advanced Primer Read chapter Read first chapter

2022 | OriginalPaper | Chapter

4. The Past, Present, and Future of the Payment System as Trusted Broker and the Implications for Banking

Author : Joseph Byrum

Published in: Innovative Technology at the Interface of Finance and Operations

Publisher: Springer International Publishing

Log in

Activate our intelligent search to find suitable subject content or patents.

search-config
loading …

Abstract

The nature of payment systems is changing. In recent times, traditional financial institutions have provided the majority of payment services. Over the centuries, incumbent banks developed a reputation to act as trusted brokers. This is their main advantage today, yet we consider several scenarios for the future of payments, all of which entail a new basis of competition and a new locus of trust. While trust will be just as important in the future as in the past, the meaning of trust is changing fast. In a world of instant payments, universal connectivity between payment networks, and perhaps even central-bank accounts for ordinary citizens to keep their digital funds, the role of banks could be quite different than it has been for the last centuries.

Dont have a licence yet? Then find out more about our products and how to get one now:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

inform now

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

inform now
previous chapter Interface of Operations and Finance: A Tutorial
next chapter Machine Learning in Healthcare: Operational and Financial Impact
Literature
Accenture. Banking business models fit for the path ahead. May 15, 2017.
ACI Universal Payments. The future of payments: Who is positioned for advantage, 2017.
AlliedWallet. Why digital wallets are gaining popularity. (Retrieved August 5, 2020).
Anan, L. et al. (2020). Are convenience and rewards leading to a digital flashpoint? McKinsey on Payments, Volume 12, Issue 30, January 2020, McKinsey & Company Global Payments Practice, McKinsey & Company.
Angel, J. J. and McCabe, D. M. The ethics of payments: Paper, plastic, or bitcoin?,” Jan.14, 2014.
Horwitz, J. Facebook-Backed Libra Project Gets New CEO, The Wall Street Journal, May 6, 2020.
Arnold, M. ECB seeks to develop own digital currency: Global payments. Financial Times, Nov 27, 2019.
Awrey, D., & van Zwieten, K. (2018). The shadow payment system. Journal of Corporation Law, 43(4), 775–816.
BAI. (2020). BAI banking outlook special report: Digital banking
Bank for International Settlements. Chapter III. Central banks and payments in the digital era. BIS Annual Economic Report, June 24, 2020a.
BIS. Bank for International Settlements. “Cross-border retail payments,” Committee on Payments and Market Infrastructures, Feb. 2018.
BIS Bank for International Settlements. “Payment aspects of financial inclusion in the fintech era,” Committee on Payments and Market Infrastructures, April 2020b.
BIS Bank of International Settlements. “Wholesale digital tokens,” Committee on Payments and Market Infrastructures, Dec. 2019.
Banking Circle (2020). Mind the Gap—How payment providers can fill a banking gap for online merchants
Bech, M. L., Hancock, J., Rice, T.; and Wadsworth, A.. On the future of securities settlement. BIS Quarterly Review, March 2020.
Beck, Morton and Hancock, Jenny. Innovations in payments. BIS Quarterly Review, March 2020.
Berentsen, Aleksander and Schar, Fabian. The case for central bank electronic money and the non-case for central bank cryptocurrencies. Federal Reserve Bank of St. Louis Review, Second Quarter 2018, pp. 97–106.
BIS Annual Economic Report. Central banks and payments in the digital era. June 24, 2020.
Bloomberg Businessweek. Who’s afraid of a digital Yuan. June 8, 2020.
Federal Reserve (2019). The 2019 federal reserve payments study.
Botta, A., et al. (n.d.). A global view of financial life during COVID-19. McKinsey & Company.
Botta, A., et al. Global transaction banking: The $1 trillion question. McKinsey on Payments, Volume 12, Issue 30, January 2020, McKinsey & Company Global Payments Practice, McKinsey & Company, 2020.
Caceres-Santamaria, A. J. Peer-to-Peer (P2P) payment services. Page One Economics, Federal Reserve Bank of St. Louis, April 2020.
Cakebread, C.. Who's Using P2P Payments in the US?. eMarketer, Dec. 2018.
Capgemini Research Institute (2019). World payments report 2019.
Carstens, Agustín. Shaping the future of payments. BIS Quarterly Review, March 2020.
Carstens, Agustín. The future of money and the payment system: what role for central banks? Lecture at Princeton University, Dec. 5, 2019.
CGI (2019). Banking transformed. Exploring payment overlay services
Clement, L.. Re-inventing the retail experience after COVID-19. Retail, Aug. 11, 2020
Coispeau, O. (2017). Finance masters: A brief history of international financial Centers in the last millennium. World Scientific.
Consensys. Project Khokha: Blockchain case study for central banking in South Africa,” June 2019
Cramer-Flood, Ethan. Global Ecommerce 2020—Ecommerce Decelerates amid Global Retail Contraction but Remains a Bright Spot. eMarketer, Jun. 22, 2020.
Davies, P. J. Wirecard Says Missing $2 Billion Probably Doesn’t Exist. The Wall Street Journal, June 22, 2020.
Dietz, M. (2018) et al. New rules for an old game: Banks in the changing world of financial intermediation, McKinsey McKinsey & Company. Global Banking Annual Review 2018
Dikshit, P. et al. (2020). US lending at point-of-sale: The next frontier of growth. McKinsey on Payments, Volume 12, Issue 30, January 2020, McKinsey & Company Global Payments Practice, McKinsey & Company.
Distributed ledger technology in payment, clearing and settlement—An analytical framework, Committee on, Bank for International Settlements (BIS). Payments and Market Infrastructures, Feb. 2017
Dunbar, C. F. (1892). The Bank of Venice. The Quarterly Journal of Economics, 6(3), 308–335.CrossRef
Faster Payments Task Force. The U.S. path to faster payments, Final Report Part Two: A Call to Action, 2017.
Federal Reserve Bank of Atlanta (2019). Survey of consumer payment choice, 2019.
Federal Reserve (2020). Progress and Next Steps with FedNowSM Service. FedPayments Improvement blogs.
Ferguson, N. (2008). The ascent of money (pp. 72–73). Penguin.
Financial Stability Board. Annex—Trusted ledger arrangements for payment arrangements. Enhancing Cross-border Payments, Stage 1 report to the G20: Technical background report, Apr. 9, 2020.
GIACT (2020). The changing landscape of identity fraud: Fraudsters strike back
Golden, P. Blockchain platforms see Covid-19 trade finance opportunity, EuroMoney, July 30, 2020,
Hall, I. Central bank digital currency developments hit “top gear” amid coronavirus. Global Government Forum, June 18, 2020a.
Hall, I. Central banks pool brainpower on digital currencies. Global Government Forum, Feb. 2, 2020b
International Monetary Fund (2018). Learn Over the Last 20 Years? IMF Working Papers
Kapronasia. Will Brazil greenlight WhatsApp Pay? July 29, 2020.
Kawasmi, Z., Gyasi, E. A., & Dadd, D. (2019). Blockchain adoption model for the global banking industry. Journal of International Technology and Information Management, 28(4), 112–154.
KPMG. (2019). 10 predictions for the future of payments. KPMG.
Labate, V.. Banking in the Roman World. Ancient History Encyclopedia, Nov. 17, 2016.
Lane, F. C. (1937). Venetian bankers, 1496-1533: A study in the early stages of deposit banking. Journal of Political Economy, 45(2), 187–206.CrossRef
McKinsey & Company (2019). The last pit stop? Time for bold late-cycle moves, McKinsey Global Banking Annual Review 2019
Medina, L. and Schneider, F. (2018). Shadow economies around the world: What did we.
Nakamoto, S.. Bitcoin: a peer-to-peer electronic cash system. Oct. 2008.
Parks, T. (2013). Medici money: Banking, metaphysics and art in fifteenth-century Florence. Profile Books.
Payments Next (2020). B2B cross-border payments may recover 30% by 2022.
Pearson, N. O. The Little Canadian Company Powering Online Shopping. Bloomberg Businessweek, June 15, 2020, pp. 22–23.
Powell, J. Innovation, technology, and the payments system. Speech made at Blockchain: The Future of Finance and Capital Markets?, The Yale Law School Center for the Study of Corporate Law, New Haven, Connecticut, March 3, 2017
PYMENTS. “Deep dive: Why contactless card-not-present transactions are gaining new momentum,” July 6, 2020.
Rice, T., von Peter, G., & Boar, C. (2020). On the global retreat of correspondent banks. BIS Quarterly Review.
Ripple. “Speed and Cost of Payments Don’t Need to Be at Odds,” Sep. 4, 2019.
Rolfe, A.. What’s blocking the future of invisible payments and why? Payments Cards and Mobile, Jul. 14, 2020.
Rudegeair, P. J.P. Morgan to buy payments Firm WePay in first major fintech acquisition. The Wall Street Journal, Oct. 17, 2017.
Schneier, B.. There's No Good Reason to Trust Blockchain Technology. WIRED, Feb. 6, 2019.
Stackhouse, Julie. Fintech: How digital wallets work. On the Economy Blog, Federal Reserve Bank of St. Louis, June 25, 2019.
Syed, Sarah. Mein Liebling Credit Card. Bloomberg Businessweek, May 4, 2020, pp. 22–23.
The Economist. Covid dries up a cash cow. Apr. 18, 2020a, p. 34
The Economist. Piping Up. Special report on international banking, May 9, 2020c
Thomas, L. France: We can't allow Facebook's Libra in Europe. Reuters, Sept. 12, 2019.
Trentmann, N. Germany moves to overhaul accounting oversight amid Wirecard Scandal. The Wall Street Journal, June 29, 2020.
Valladares, M. R. Improving Cross-Border Payments Is Critical to Support Global Economic Growth, Trade And Financial Inclusion. Forbes, Jul. 13, 2020
van Biljon, P., & Lajoux, A. (2020). Making money – The history and future of society’s most important technology (pp. 213–231). De Gruyter.
Wadsworth, A. (2018a). Decrypting the role of distributed ledger technology in payments processes. The Reserve Bank of New Zealand Bulletin, 81, 5.
Wadsworth, A. Decrypting the role of distributed ledger technology in payments processes. The Reserve Bank of New Zealand Bulletin, Vol. 81, No. 5, May 2018b.
Ward, J. Bank of England debating digital currency creation, Bailey Says. Bloomberg, July 13, 2020.
Webb, A.. Facebook's Libra cryptocurrency sounds a lot like what China's doing. Here's why that should scare you. Inc., Oct. 2019
Weber, H. Mercedes-Benz might track your car’s location if you don’t make your payments. Fast Company, Aug. 20, 2019.
Wittenstein, J.. Square rally sends valuation into ranks of biggest U.S. Banks. Bloomberg, July 6, 2020
Worldpay from FIS. Consumer behavior & payments report 2019, 2019.
Worldpay from FIS. Global payments report—The pathways of people and payments, Jan 2020.
Wurmser, Y. US Mobile Payment Users 2019. eMarketer, Oct. 14, 2019.
Xie, S. Y.. How Jack Ma’s Ant Group went from business disrupter to Chinese Tech Champion. The Wall Street Journal, Jul. 21, 2020.
Zheng, S.. At least 18 central banks are developing sovereign digital currencies, The Block, Dec. 26, 2020.
Metadata
Title
The Past, Present, and Future of the Payment System as Trusted Broker and the Implications for Banking
Author
Joseph Byrum
Copyright Year
2022
Book
Innovative Technology at the Interface of Finance and Operations

Print ISBN: 978-3-030-75728-1

Electronic ISBN: 978-3-030-75729-8

Copyright Year: 2022

DOI
https://doi.org/10.1007/978-3-030-75729-8_4