Publications
Publications
- August 2008 (Revised July 2011)
- HBS Case Collection
Consumer Payment Systems — United States
By: Benjamin Edelman and Andrei Hagiu
Abstract
In 2008, the U.S. consumer payments landscape was characterized by the ongoing prevalence of credit and debit card networks, the decline of checks, the rise of stored value cards, and the growth of new payment methods such as PayPal, Bill Me Later, and decoupled debit. This case presents the structure of these payment methods, focusing on incentives for both consumers and merchants, including direct costs, efficiency benefits, rebates, and treatment in case of loss or fraud.
Keywords
Borrowing and Debt; Financial Management; Personal Finance; Digital Platforms; Motivation and Incentives; Competitive Strategy; Internet and the Web; United States
Citation
Edelman, Benjamin, and Andrei Hagiu. "Consumer Payment Systems — United States." Harvard Business School Case 909-006, August 2008. (Revised July 2011.) (request a courtesy copy.)