Page 13 - IMF-欧洲的金融科技：机遇与挑战（英文）-2020.11-35页.pdf

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PAYMENTS

12. Fintech companies can impact the payment services market through innovations
that reduce costs, enhance the customer experience and increase competition. Fintech
companies are developing tools to reduce costs and increase convenience of payments. To
detect and prevent fraudulent transactions, customers’ payment data is analyzed using
artificial intelligence, biometrics are used to improve authentication and enhance
convenience, and the security of payment communications is enhanced through tokenization.
Fintechs are also using payment data to identify cross-selling opportunities. The ease of
scalability of some of these solutions also generates incentives to integrate domestic and
cross-border payments services. The entrance of new players creates more competition,
challenging banks’ dominance in payments—including their traditional card schemes—
which are also moving towards adopting fintech solutions.

A. Traditional Card Schemes

13. Traditional card payment transactions require multiple participants and steps.
They involve the separate exchange of information—the payment authorization and
approval—and payment, across several actors.

• The participants: key actors
in card transactions are the
consumer, the merchant, the
“acquirer bank” (the
merchant’s bank), the “issuer
bank” (the consumer’s bank,
which issues the card) and
the payment card network. It
is important to notice that this
is a two-sided market with
network externalities. The
consumers want cards that
are accepted by the merchants they patronize, while merchants want to accept cards
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that are widely hold by their customers.

• The data exchange: a typical transaction starts with the consumer providing the
payment authorization data (PAD) to the merchant. This could be a PoS transaction or
a remote one via the internet or telephone. The merchant submits the PAD to the
merchant’s bank, which passes it to the card network, which in turn routes it to the
customer’s bank. The customer’s bank gives the authorization which works its way

8 For a discussion of two-sided markets see Rochet and Tirole (2003).