Payments Innovation, Investment, and Interchange Fees

David Evans    Tim Attinger

Evans argued 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. Bourreau examined how the interchange fee can be used to encourage various kinds of innovation with sometimes higher and sometimes lower interchange fees being desirable. Attinger argued 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 backed the differentiated interchange fee approach advanced by Pauget.

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Marc Bourreau Tim Attinger David Evans

David S. Evans, is the Chairman of the Global Economics Group in the firm’s Boston office, and has broad experience in the economics of antitrust, intellectual property, and financial regulation. Dr. Evans has an international practice and has worked on matters in the United States, the European Union, China, Brazil, Australia, and other jurisdictions. Read More

Marc Bourreau is a professor of economics at Telecom ParisTech (Ecole Nationale Supérieure des Télécommunications, Paris, France). He is also a research fellow at the laboratory of industrial economics (LEI) of the Center for Research in Economics and Statistics (CREST). Read More

Tim Attinger is a Managing Director for Market Platform Dynamics with the Firm’s San Francisco office.  In this capacity Tim advises executives of global clients on innovation and growth strategies, establishing corporate direction, finding and assessing partners, and catalyzing new product development. Read More