Nonbanks are becoming increasingly prominent in payments systems around the world. What are the implications of this heightened presence for innovation, competition, and risk? This international conference brought together three principal audiences - industry participants, academics, and public authorities - for an exchange of views and thoughts. The following issues were addressed:

  • What activities do banks and nonbanks perform in payments?
  • How has rising nonbank participation affected product innovation and market competition in the payments industry?
  • Do banks and nonbanks compete on a level playing field?
  • Is the current supervisory framework over bank and nonbank payment service providers adequate to control risk?
  • What role should public authorities play in overseeing retail payments in light of changing technologies and changing industrial structures?

PDFConference Summary
PDFRichard J. Sullivan
Senior Economist, Federal Reserve Bank of Kansas City

Zhu Wang
Senior Economist
Federal Reserve Bank of Kansas City

PDFWelcome and Opening Remarks

External LinkRichard K. Rasdall, Jr.
First Vice President
Federal Reserve Bank of Kansas City

Session 1: Nonbank Payment Activities: An Overview
PDFPaper
PDFHandout
PDFGeneral Discussion

Authors
PDFSimonetta Rosati
Senior Market Infrastructure Expert
European Central Bank

PDFStuart E. Weiner
Vice President and Director of Payments System Research
Federal Reserve Bank of Kansas City

Session 2: Innovation
PDFPaper
PDFHandout
PDFGeneral Discussion

Author
PDFBronwyn Hall
Professor
University of California, Berkley

Moderator
PDFLee Manfred
Partner
First Annapolis
PDFRemarks
PDFHandout

Panelists
PDFBenjamin Ling | PDFRemarks | PDFHandout
Head of Google Checkout
Google

PDFRene Pelegero | PDFRemarks | PDFHandout
Senior Director of Industry Relations, Strategy and Compliance
Paypal, Inc.

PDFMargaret Weichert | PDFRemarks | PDFHandout
Senior Vice President, Strategy, Innovation and Payments Executive
Bank of America

Luncheon Address: Modernizing Payments: No Pain, No Gain
PDFPaper | PDFGeneral Discussion |
PDFGertrude Tumpel-Gugerell
Member of the Executive Board
European Central Bank

Session 3: Competition: Vertical Integration
PDFPaperPDFGeneral Discussion |

Author
PDFNicholas Economides
Professor
New York University

Moderator
PDFKenneth PosnerPDFRemarks | PDFHandout
Managing Director
Morgan Stanley

Panelists
PDFMichael A. Cook | PDFRemarks | PDFHandout
Vice President and Assistant Treasurer
Wal-Mart Stores, Inc.

PDFTrey Jinks | PDFRemarks | PDFHandout
Senior Director, Corporate Strategy and Planning
TSYS

PDFPamela A. Joseph | PDFRemarks | PDFHandout
Vice Chair
U.S. Bancorp

Session 4: Competition: Horizontal Integration
PDFPaper | PDFGeneral Discussion

Author
PDFJean-Charles Rochet
Professor
University of Toulouse

Moderator
PDFKen Howes | PDFRemarks | PDFHandout
Director
Edgar, Dunn & Company

Panelists
PDFB.J. Haasdijk | PDFRemarks | PDFHandout
Chairman
Equens

PDFGerard Hartsink | PDFRemarks | PDFHandout
Chairman
European Payments Council

PDFDavid Yates | PDFRemarks
President, Europe, Middle East, and Africa
First Data International

Session 5: Risk
PDFPaper | PDFHandout | PDFGeneral Discussion |

Author
PDFRoss Anderson
Professor
Cambridge University

Moderator
PDFAvivah Litan | PDFRemarks
Vice President and Distinguished Analyst
Garnter, Inc.

Panelists
PDFJean Bruesewitz | PDFRemarks
Senior Vice President
Visa U.S.A.

PDFRoy C. DeCicco | PDFRemarks | PDFHandout
Senior Vice President
JPMorgan Chase

PDFRichard Oliver | PDFRemarks | PDFHandout
Executive Vice President
Federal Reserve Bank of Atlanta

PDFJames Van Dyke | PDFRemarks | PDFHandout
President
Javelin Strategy and Research

Session 6: Central Bank Perspectives
PDFGeneral Discussion

Speakers
PDFPhilip Klopper | PDFRemarks | PDFHandout
Executive Director
De Nederlandsche Bank

PDFPhilip Lowe | PDFRemarks
Assistant Governor
Reserve Bank of Australia

PDFThomas M. Hoenig | PDFRemarks
President and Chief Executive Officer
Federal Reserve Bank of Kansas City

PDFConference Attendees