Establishing a European Observatory on epayment systems

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Establishing a European Observatory on e-payment
systems
INTRODUCTION ePSO ePSO Kick-off
Meeting Brussels, June 15, 2000
Bernard Clements
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Presentation Contents
IPTS mission. ICTs Unit strategic Objectives.
e-Payment Systems 1999 study for the European
Parliament Why an e-payments systems Observatory.
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The mission of IPTS
Is to provide prospective techno-economic
analyses in support of the European Unions
policy-making process. IPTS monitors and
analyses ST related developments, their
cross-sectorial impact, the inter-relationships
between technology and society, and their future
policy implications. IPTS co-ordinates
international networks, pools the expertise of
high level advisors and presents information in a
timely and synthetic fashion.
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Information and Communication Technologies (ICT)
at IPTS

• Quality of life
• Sustainability

• Employment
• Governance

• Competitivity

eEurope Context
(Political Agenda)
(Clusters of change)

• New Economy
• Mobility
• Crossing Technologies
• Knowledge-based Society

IPTS Prospective work
- How to guarantee economic and social welfare?
- Impact of ICT on Europes competitivity? -
What perspective do ICTs bring to jobs? - How to
use ICTs for better government? - How can ICTs
contribute to sustainability?
Future policy options
(Output)
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Study on e-payment systems for EMA committee of
EP (1)

• OBJECTIVE
• to provide a comprehensive panorama of the
  positions of actors and experts on policy
  statements and questions formulated by the
  European Parliament on e-payments
• THE TEAM
• a study-specific network set-up within ESTO
  which contributed to both the strategic report
  and the country synthesis report co-ordinated by
  ITAS
• RESULTS
• Strategic IPTS report (IPTS ESTO)
• http//www.jrc.es/pages/projects/docs/Final-EPS-Vo
  l.1.pdf
• Country synthesis report (ITAS ESTO)
• http//www.jrc.es/pages/projects/docs/ESTOCSRfinal
  .pdf

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Study on e-payment systems for EMA committee of
EP (2)
Does the lack of a safe and widespread electronic
payment system hamper the growth of electronic
commerce? Will monetary union speed-up
cross-border electronic commerce within the EU
and world-wide? What are the costs of
non-standardisation of electronic payment
systems? Should markets or regulators impose
future standards if necessary for electronic
payment systems? How to regulate issuers of
electronic money? How will electronic money
affect monetary policy-making?
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Study on e-payment systems for EMA committee of
EP (3)
Central Banks European Central Bank, England,
Finland, Germany, The Netherlands, Sweden,
Denmark, Portugal, Federal Reserve System,
Federal Reserve Bank of Atlanta , Peru,
Australia, New Zealand. Bank Associations/
International Organisations European Bank
Federation, Bank of International Settlements,
APACS (UK), European Savings Banks Group, Swiss
Bankers Association, UNCITRAL Secretariat
(UNO). Private Banks Royal Bank of Scotland,
Lloyds, Sparkassen SIZ (Germany), Erste Bank
(Austria), Halifax, Alpha Credit Bank (GR),
Leonia Bank, Cera Bank, Den Danske Bank, Deutsche
Bank, AIB Bank, Rabobank. Card Industry Visa,
Europay, Interpay, Cyber Cash, Sistema 4B, NTT,
Sermepa/Visa (ES) Technology/System Providers
IBM (several contributions), Groupe Bull, Intuit,
Hitachi, Meta Group (several contributions),
Debis Systemhaus (several contributions), DEC,
SUN Microsystems, Agencia de Certificacion
Electronica (Spain), Information Services
International-Dentsu LTD (Jp). E-commerce/Retaile
rs Bertelsmann, Svensk Handel, E-Commerce Europe
(ECE), Lufthansa. Experts/Academia/DG's Anderson
Ross, Duncan Goldie-Scot, E. Alyanakian, C.
Kuner, H. Konstapel, S. Gazziano, R. Field, A.
Prinz, I. Grigg, D. Bartmann, A. Weber, S. Smith,
D. Nolle, M. Bruestle, C. Centeno, E. Tranoy, F.
Simon, B. Rivetti, J.C. Mizzi, D. Herson, T.
Vissol.
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Study on e-payment systems for EMA committee of
EP (4)

• Main consensus points
• Lack of computer literacy and infrastructure at
  both the supplier and consumer ends.
• Existence and the size of an electronic
  marketplace.
• Cultural, generational and linguistic barriers
• Telecommunications Costs.
• The extent and quality of business solutions
  (goods and services) made available over the
  Internet, and the added value offered to the
  consumer.
• Contractual/Legal framework

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Study on e-payment systems for EMA committee of
EP (5)

• Main areas of NO consensus
• Security of e-payment systems and impact on
  uptake.
• Strategic need for Europe-wide e-payment system.
• Key factors for growth in Cross-border exchange.
• Cost of non-standardisation - Europe-wide needs.
• Consumer protection aspects need be further
  studied

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Why an e-Payments Observatory (1)

• New types of e-payment systems are now emerging
  and mobile access technologies impact increases
• Risk for market fragmentation with consequences
  to both consumers and suppliers in the long-term
• Complexity of legal/regulatory framework
• number and diversity of stakeholders
• prospects for growth outside the EU

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Why an e-Payments Observatory (2)

• Policy-makers dilemma is how to maintain a
  balance between protecting consumers (financial
  integrity of new institutions, market
  harmonisation) and fostering innovation (avoiding
  excessive regulation)
• An independent Observatory on e-payment systems
  would be able to deliver a systematic exchange of
  views at a European level, on available solutions
  and probable future trends aiming at reconciling
  the interests of many disparate players