Putting A Price On Payment Options
Safety of a bank account is the primary concern for central banks. Next in line is the efficiency of the payment system. Electronic payment options are not just cheaper but far more convenient. Norway explicitly priced point-of-sale and bill-payment transactions and rapidly shifted to electronic payments, while the Netherlands experienced a similar shift without pricing. Electronic payments can confer social benefits considering the fact that the average bank cost of an electronic payment is one-third to one half that of its paper-based equivalent or cash. Also, a merchant’s average cost of accepting a bill payment electronically over a giro network or at the point of sale (POS) is also lower. This may be the next thing to be introduced in the banking industry soon. Read more.