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Gatekeeping at the counter: The regulation of stacked payment platforms

Author

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  • Gomes, Renato
  • Lefouili, Yassine
Abstract
This paper explores the pricing of ancillary payment services by platforms and its implications for welfare. We distinguish between two types of platforms: vertical platforms that operate their own closed payment schemes, and stacked platforms that offer payment services through open schemes operated by third parties. We analyze the impact of a regulation mandating platforms to provide access to third-party payment services and examine the regulation of interchange fees within the context of stacked platforms.

Suggested Citation

  • Gomes, Renato & Lefouili, Yassine, 2024. "Gatekeeping at the counter: The regulation of stacked payment platforms," TSE Working Papers 24-1590, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:129914
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    References listed on IDEAS

    as
    1. Julian Wright, 2012. "Why payment card fees are biased against retailers," RAND Journal of Economics, RAND Corporation, vol. 43(4), pages 761-780, December.
    2. Glenn Ellison, 2005. "A Model of Add-On Pricing," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(2), pages 585-637.
    3. Farrell, Joseph, 1989. "Converters, Compatibility, and the Control of Interfaces," Department of Economics, Working Paper Series qt8161p50b, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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    5. Bianchi, Milo & Bouvard, Matthieu & Gomes, Renato & Rhodes, Andrew & Shreeti, Vatsala, 2023. "Mobile payments and interoperability: Insights from the academic literature," Information Economics and Policy, Elsevier, vol. 65(C).
    6. Renato Gomes & Jean Tirole, 2018. "Missed Sales and the Pricing of Ancillary Goods," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 133(4), pages 2097-2169.
    7. Farrell, Joseph & Saloner, Garth, 1992. "Converters, Compatibility, and the Control of Interfaces," Journal of Industrial Economics, Wiley Blackwell, vol. 40(1), pages 9-35, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    platforms; payment services; ancillary services; regulation; interoperability; interchange fee;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System

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