David Evans argues that drastic cuts in interchange fee regulations would flip the business model of payments to a consumer pays model which would likely reduce investment and innovation in the long run.
Marc Bourreau examines how the interchange fee can be used to encourage various kinds of innovation with sometimes higher and sometimes lower interchange fees being desirable.
Tim Attinger argues that the effect of suppressing interchange in a marketplace would be to rob new entrants of the flexible exchange mechanisms of which the market leaders availed themselves to build their current positions and he backs the differentiated interchange fee approach advanced by Pauget.
View David’s presentation and Marc’s and Tim’s presentation decks here:
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