Article ID Journal Published Year Pages File Type
5090517 Journal of Banking & Finance 2009 8 Pages PDF
Abstract
This paper investigates the existence and extent of economies of scale in the European payment processing industry. It is expected that the creation of a single European payments area (SEPA) will spur consolidations and mergers among European payment processors to more fully realize payment economies of scale. We find evidence for the existence of significant economies of scale using data of eight European payment processors during the years 1990-2005. The analysis also reveals that ownership structure is an important factor to explain cost differences across European processing centers.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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