1、 The competitive landscape for payments: a European perspective March 2020 Oxera Consulting LLP is a limited liability partnership registered in England no. OC392464, registered office: Park Central, 40/41 Park End Street, Oxford OX1 1JD, UK; in Belgium, no. 0651 990 151, registered office: Avenue L

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6、may be used or reproduced without permission. The competitive landscape for payments: a European perspective Oxera Contents Acronyms 1 Definitions 2 1 Introduction 3 1.1 Scope and objectives of this report 3 1.2 Key findings 3 1.3 Structure of report 5 2 Economics of payment systems 6 2.1 Introducti

7、on and key messages 6 2.2 What is a payment system? 6 2.3 Economic characteristics of payment systems 7 2.4 How do networks compete? 12 2.5 Implications for competition between payment methods 18 2.6 This report: assessing competition 19 3 Trends reshaping payments 20 3.1 Introduction and key messag

8、es 20 3.2 What role do payment systems play in the modern economy? 20 3.3 Traditional payments value chain 21 3.4 Developments in technology, regulation and consumer preferences 22 3.5 Current value chain 29 4 Retail payment methodsmarket structure and different types of player 31 4.1 Introduction a

9、nd key messages 31 4.2 Cash 33 4.3 Cheque 35 4.4 Credit transfer and direct debit and payment methods using interbank infrastructures 35 4.5 Cards 36 4.6 Entry by new providers of retail payment methods 38 4.7 Entry by providers of payment services using interbank processing infrastructures 39 4.8 P

10、ayment initiators 41 The competitive landscape for payments: a European perspective Oxera 3 4.9 Peer-to-peer payments 43 4.10 Online and person-to-person-based payment methods are being made available for physical in-store payments 46 4.11 Digital wallets 46 5 Market outcomes 51 5.1 Introduction and

11、 key messages 51 5.2 Choice and quality 51 5.3 Innovation 56 5.4 Volumes 57 5.5 Prices 60 6 Competitive dynamics 63 6.1 Introduction and key messages 63 6.2 Competitive dynamics allow for entry and expansion 64 6.3 Front-end competition 66 6.4 The rise of digital wallets 69 6.5 Effect on the competi

12、tive dynamics 74 6.6 Forward-looking trends 76 7 Competition for the provision of payment services in France 82 7.1 Introduction and key messages 82 7.2 Market background 82 7.3 Competition between card schemes in France 86 7.4 Competition between card schemes and other providers in France 89 7.5 Co

13、nclusions 93 8 Competition for the provision of payment services in Germany 94 8.1 Introduction and key messages 94 8.2 Overview of payment methods 94 8.3 Market structure, types of player and payment methods 95 8.4 Competitive dynamics in Germany 99 8.5 Conclusion 101 9 Competition for the provisio

14、n of payment services in Italy 102 9.1 Introduction and key messages 102 9.2 Overview of payment methods 102 9.3 Competitive dynamics in Italy 110 9.4 Conclusions 118 10 Competition for the provision of payment services in the United Kingdom 120 10.1 Introduction and key messages 120 10.2 Market bac

15、kground 120 10.3 Open banking and regulatory developments 122 The competitive landscape for payments: a European perspective Oxera 4 10.4 Key UK trends 124 10.5 Conclusions 128 Boxes Box 2.1 Two-sided network effects for retail payment methods 8 Box 4.1 iDEAL 40 Box 4.2 Paydirekt 40 Box 4.3 Swish 41

16、 Box 4.4 Blik 41 Box 4.5 Sofort 42 Box 4.6 Trustly 42 Box 4.7 GoCardless 43 Box 4.8 Tikkie 44 Box 4.9 Twyp 44 Box 4.10 Bizum 45 Box 4.11 MobilePay 45 Box 4.12 Payconiq 45 Box 4.13 PayPal 48 Box 4.14 Amazon Pay 49 Box 4.15 Vipps 49 Box 4.16 Apple Pay 49 Box 9.1 Regional heterogeneity in the diffusion

17、 of traditional and new payment methods among Italian consumers 109 Figures and tables Figure 2.1 Network effects in payments 8 Figure 2.2 Networks with different economic features 14 Figure 2.3 Models of comparison in network industries can differ considerably 17 Figure 3.1 Value chain of a traditi

18、onal retail payment system 22 Figure 3.2 Alternative routes of payment 26 Figure 3.3 Global shipment of smartphones (m), 20092018 28 Figure 3.4 Global mobile app revenues ($bn), 20152020 28 Figure 3.5 Current value chain of payment system 30 Figure 4.1 Total number of all EEA retail transactions, by

19、 payment method (bn), 2016 32 Figure 4.2 Total number of EEA retail e-commerce transactions, by payment method (bn), 2016 33 Figure 4.3 Use of payment instruments for physical in-store purchases in the eurozone, by value range (%), 2016 34 Figure 4.4 Cash usage for physical in-store retail payments

20、in Europe (%), 2016 35 Figure 4.5 Physical in-store transactions by payment amount, eurozone, 2016 37 The competitive landscape for payments: a European perspective Oxera 5 Figure 4.6 Online transactions for a selection of European countries, 2016 37 Figure 4.7 Card penetration in Europe, 2017 38 Fi

21、gure 4.8 E-wallet share of online transactions, 2017 47 Figure 4.9 Number of mobile wallet users in Europe (m), 20162022 48 Figure 5.1 Cash transactions as a proportion of physical in-store transactions/all transactions, by volume, 20092017 58 Figure 5.2 Cheque transactions as a proportion of card,

22、cheque, credit transfer and direct debit transactions, by volume (%), 20002016 59 Figure 6.1 Summary of competitive dynamics 64 Figure 6.2 Levels of competition in payments 66 Figure 6.3 Preferred payment methods across Europe for e- commerce, 2017 70 Figure 6.4 Global customer base of digital walle

23、ts (m users), 2018 71 Figure 7.1 Share of cash transactions per country (eurozone) in- store, 2016 83 Figure 7.2 Breakdown of online payment methods in France (by value), 2018 84 Figure 7.3 Evolution of the amount of contactless payment in France (m), 2017 85 Figure 8.1 Payment usage in Germany in-s

24、tore and private transactions (value and number of transactions), 2008, 2011, 2014, and 2017 96 Figure 8.2 Average cards per person in Western Europe and Germany, 2016 97 Figure 8.3 Online payments usage in Germany, survey data, 2017 99 Figure 9.1 Share of cash transactions per country (eurozone) in

25、- store, 2016 103 Figure 9.2 Response to the survey question: Assuming you were offered various payment methods in a shop, what would be your preferred payment method?, 20152016 105 Figure 9.3 Number of cards and POS terminals in Italy: traditional and contactless, 2018 106 Figure 9.4 Share of numbe

26、r of cards in Italy and value of card payments: breakdown by method, (bn), 2018 106 Figure 9.5 Ecommerce turnover and ecommerce number of transactions in Italy (bn), 2018 107 Figure 9.6 Share of transactions by ecommerce payment methods in Italy, 2018 108 Figure 9.7 E-wallet share of online transact

27、ions by country, 2017 109 Figure 9.8 Number of cards and e-wallets per capita by region, 2017110 Figure 9.9 Breakdown of online payment methods in Italy, 2012 2016 114 Figure 9.10 Italian consumers trust by economic sector, 2018 115 Figure 10.1 Breakdown of total payment methods in the UK (by volume

28、), 2018 121 Figure 10.2 Average cards per adult in Western Europe and the UK, 2016 121 The competitive landscape for payments: a European perspective Oxera 6 Figure 10.3 Attitudes towards non-cash payment methods by demographic, February 2018 122 Figure 10.4 UK split of online retail payments, 2017

29、124 Figure 10.5 Number of monthly contactless transactions (m), 2014 2017 126 Figure 10.6 Number of mobile commerce users by amount spent (m), 20132016 127 Figure 10.7 Apple Pay and Android Pay users by age range (% of users), 2016 128 Table 5.1 The cost of using cash 61 Table 9.1 Summary of new pay

30、ment methods in Italy 117 The competitive landscape for payments: a European perspective Oxera 1 Acronyms Acronym Description ACH automated clearing house ACPR Autorit de Contrle Prudentiel et de Rsolution AISP account information service provider API application programming interface APP authorised

31、 push payments ATM automated teller machine (cash dispenser) CCP central counterparty clearing CSD central securities depositories CB Cartes Bancaires CNPS Comit National des Paiements Scripturaux DE Germany ECB European Central Bank EEA European Economic Area EMV originally, Europay Mastercard Visa

32、. Now used to designate the technical standard for cards known as chip and PIN cards EMVco corporation responsible for the EMV standards EU European Union FCA Financial Conduct Authority FR France GDP gross domestic product GIE Groupement dIntrt Economique IFR Interchange Fee Regulation IoT Internet

33、 of things mPOS mobile point of sale MSC merchant service charge NFC near-field communication P2P peer-to-peer PIN personal identification number PISP payment initiation service provider POS point of sale (includes bricks-and-mortar and online merchants) PSD2 second Payment Services Directive PSP pa

34、yment service provider PSR Payment Service Regulator QR code quick response code SEPA Singe European Payment Area TIPS TARGET Instant Payment Settlement UK United Kingdom Source: Oxera. The competitive landscape for payments: a European perspective Oxera 2 Definitions Concept Definition Co-badged ca

35、rds Payment cards that include two or more payment brands (or schemes). Credit transfer Payment initiated by the payer. The payer sends a payment instruction to their payment service provider (PSP), e.g. bank. The payers PSP moves the funds to the payees PSP. Also referred to as a bank transfer. Dig

36、ital wallets An electronic device or online service that allows a user to make electronic transactions. They can be linked to the users bank or card details. Direct debit Transfer initiated by the payee via their PSP. Direct debits are often used for recurring payments and require pre-authorisation

37、from the payer. Four-party card scheme The payment scheme involves four parties: the cardholder, the merchant, the issuer (the cardholders PSP), and the acquirer (the merchants PSP). The scheme rules set out the terms of dealing between the issuer and the acquirer. Examples include Visa and Masterca

38、rd. Interbank payments or processing Payments processing infrastructure that banks are connected to and which is typically used for credit transfers and direct debits. Also referred to as automated clearing houses (ACH) Interchange fee In four-party card schemes, a fee paid by the bank serving the p

39、ayer (the acquiring bank) to the bank that issued the card to the customer (the issuing bank). Merchant Service Charge (MSC) Fee for debit or credit card transactions or acceptance that merchants negotiate with their acquirer. Multi-homing Users associating with more than one competing platform in a

40、 two-sided market. Examples include consumers carrying credit cards from multiple bank accounts, or using more than one operating system on a computer. Retail payment Purchases made by a consumer at a merchant, which may be a physical store or an e-commerce site. Three-party card scheme The card sch

41、eme consists of three parties: a cardholder, a merchant and a joint issuer and acquirer (sometimes called the franchisee). In the case of three-party schemes, the payment scheme provides the issuing and acquiring services itself. There is no competition within the brand; rather, the competition is w

42、ith other brands. Examples include American Express and Discover Card. Source: Oxera. The competitive landscape for payments: a European perspective Oxera 3 1 Introduction 1.1 Scope and objectives of this report The competitive landscape for retail payments in Europe is going through a period of con

43、siderable upheaval due to technological change and entry by new providers, supported by regulatory changes. To gain a better understanding of these changes and consider their implications for market outcomes such as quality, choice and prices in retail payments, Oxera was commissioned to analyse thi

44、s competitive landscape. Our analysis covers three broad areas: the current market for retail payments in Europe, including an introduction to the economics of networks and how payment methods compete, and the types of payment methods active in this market; what these economic considerations are lik

45、ely to imply for market outcomes and the competitive dynamics between different methods and service providers, both at present and in the future; how these factors are shaping the market for retail payments in France, Germany, Italy and the UK. The focus is on purchases made by a consumer at a merch

46、ant, which may be a physical store or an e-commerce site. Business-to-business payments are not considered, and interpersonal payments between individual consumers are considered only to the extent there is an interaction with retail payments. Our analysis focuses on the EEA and is based on an econo

47、mic evaluation of evidence and case studies, with sources clearly cited throughout. 1.2 Key findings The central conclusions of our analysis are as follows. Technological and regulatory trends are reshaping the payment landscape by increasing access to interbank infrastructures. Technological, marke

48、t and regulatory developments are significantly reducing barriers to entry and changing the way competition works in this market. New technology has increased the importance of e-commerce. Payment methods using the interbank infrastructure have become viable alternatives for such transactions, and t

49、hey are already widely used in a number of EEA member states in place of cards (albeit with different product features as a result of their functionality and cost). The second Payment Services Directive (PSD2) reduced the costs of new payment service providers accessing this interbank processing infrastructure, increasing its accessibility. Common and openly available technology standards have enabled