Biliana Alexandrova-Kabadjova

The increased volume of digitally performed payment transactions has contributed to the efficiency on funds allocation in terms of speed and cost reductions, as well as it constitutes an ecological friendly alternative to cash payments. This paper analyses the use and adoption of payment cards in the context of the industrial organization of the market in Mexico. In particular, there are two Automated Clearing Houses (ACH) that process significant number of transactions split between the two of them. We argue that this arrangement creates an important overlap on the scope that ACH can reach, increases the cost of processing of payment transactions and de facto instead of favoring the use of cards, operates against it. We propose indicators such as network density, connectivity and overlapping to measure the sharing activities from network theory perspective with 5 years data of bilateral transactions. In an incipient market, results throw empirical evidence that contributes to the discussion of how many ACH are required to stimulate the use and adoption of payment cards.

This paper identifies the determinants behind the dynamics of the real-time settlement payment system in Mexico, SPEI, during the period January 2005–December

In this chapter, the authors present a methodology to study the flow of funds in large-value payment systems (LVPSs). The algorithm presented differentiates the flow of payments into two categories: 1) external funds, i.e. funds transferred from other financial market infrastructures (FMIs) or provided by the central bank, and 2) the reuse of incoming payments within the same FMI. Using individual transaction data, the algorithm evaluates to what extent incoming payments are used to cover obligations. The method also studies the flow of intraday liquidity under the framework of its provision within Mexican FMIs. The aim is to evaluate the impact of intraday liquidity provision, and understand how liquidity is transmitted to participants in the Mexican Large Value Payment System, or SPEI®.