Paying with Plastic – The Digital Revolution in Buying and Borrowing 2e - Softcover

Evans, David S; Schmalensee, Richard

Softcover

ISBN 10: 026255058X ISBN 13: 9780262550581

Publisher: MIT Press, 2005

Synopsis

The definitive account of the trillion-dollar payment card industry. The payment card business has evolved from its inception in the 1950s as a way to handle payment for expense-account lunches (the Diners Club card) into today's complex, sprawling industry that drives trillions of dollars in transaction volume each year. Paying with Plastic is the definitive source on an industry that has revolutionized the way we borrow and spend. More than a history book, Paying with Plastic delivers an entertaining discussion of the impact of an industry that epitomizes the notion of two-sided markets: those in which two or more customer groups receive value only if all sides are actively engaged. New to this second edition, the two-sided market discussion provides useful insight into the implications of these market dynamics for cardholder rewards, merchant interchange fees, and card acceptance. The authors, both of whom have researched the industry for more than 25 years, also examine the implications of the recent antitrust cases on the industry as well as other business and technological changes-including the massive consolidation brought about by bank mergers, the rise of the debit card, and the emergence of e-commerce-that could alter the payment card industry dramatically in the years to come.

About this title

Product Description

The payment card business has evolved from its inception in the 1950s as a way to handle payment for expense-account lunches (the Diners Club card) into today's complex, sprawling industry that drives trillions of dollars in transaction volume each year. Paying with Plastic is the definitive source on an industry that has revolutionized the way we borrow and spend. More than a history book, Paying with Plastic delivers an entertaining discussion of the impact of an industry that epitomizes the notion of two-sided markets: those in which two or more customer groups receive value only if all sides are actively engaged. New to this second edition, the two-sided market discussion provides useful insight into the implications of these market dynamics for cardholder rewards, merchant interchange fees, and card acceptance. The authors, both of whom have researched the industry for more than 25 years, also examine the implications of the recent antitrust cases on the industry as well as other business and technological changes -- including the massive consolidation brought about by bank mergers, the rise of the debit card, and the emergence of e-commerce -- that could alter the payment card industry dramatically in the years to come.

Review

An excellent treatment of the payment card industry's evolving structure and conduct.

--Daniel Pope, Enterprise & Society

Well-written and clearly presented.

--Tudor Marshall, The Business Economist

Edition details

• Publisher: MIT Press
• Publication date: 2005
• ISBN 10: 026255058X
• ISBN 13: 9780262550581
• Binding: Paperback
• Language: English
• Edition number: 2
• Number of pages: 384