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The impact of policy effects on the Hungarian payments card market

Author

Listed:
  • László Kajdi

    (Magyar Nemzeti Bank, Directorate Financial Infrastructures (Central Bank of Hungary))

  • Milán Kiss

    (Magyar Nemzeti Bank, Directorate Financial Infrastructures (Central Bank of Hungary))

Abstract

As a major electronic alternative to cash, central banks and state administrations often support the development of card payments with regulatory and public policy steps. Hungary was extremely active in this field by executing POS-terminal installation programmes or setting limits to interchange fees a year before the European regulation. Within this study we investigate, how these measures contributed to the recent evolution of Hungary’s payment card market. Using the comprehensive dataset of the Central Bank of Hungary, we provide empirical evidence using time-series analysis methods, that both policy steps had a significant positive effect on the domestic card payments scene.

Suggested Citation

  • László Kajdi & Milán Kiss, 2022. "The impact of policy effects on the Hungarian payments card market," Journal of Banking Regulation, Palgrave Macmillan, vol. 23(2), pages 107-119, June.
    • Handle: RePEc:pal:jbkreg:v:23:y:2022:i:2:d:10.1057_s41261-021-00152-6
    DOI: 10.1057/s41261-021-00152-6
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    References listed on IDEAS

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    1. László Kajdi & István Nemecskó, 2020. "Regional Features of Card Payments in Hungary," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 19(1), pages 65-89.
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    3. Tamás Ilyés & Lóránt Varga, 2015. "Show me how you pay and I will tell you who you are – Socio-demographic determinants of payment habits," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 14(2), pages 25-61.
    4. Guerino Ardizzi & Michele Savini Zangrandi, 2018. "The impact of the interchange fee regulation on merchants: evidence from Italy," Questioni di Economia e Finanza (Occasional Papers) 434, Bank of Italy, Economic Research and International Relations Area.
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    6. Reisinger, Markus & Zenger, Hans, 2019. "Interchange fee regulation and service investments," International Journal of Industrial Organization, Elsevier, vol. 66(C), pages 40-77.
    7. Schmiedel, Heiko & Kostova, Gergana & Ruttenberg, Wiebe, 2012. "The social and private costs of retail payment instruments: a European perspective," Occasional Paper Series 137, European Central Bank.
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    11. Alen Veljan, 2020. "The influence of intra- and inter-system concentration on the pre-regulated setting of interchange fees within cooperative card payment networks," Journal of Banking Regulation, Palgrave Macmillan, vol. 21(2), pages 139-151, June.
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