How much does it cost to pay? Measuring the costs of retail payments
Cost efficiency has been at the forefront of arguments for moving from paper-based to electronic payment instruments. However, inefficiencies persist, with cash still being “king” and the cheque still dominant in many countries. Data on the costs of payment instruments would be valuable in developing a strategy to improve countries’ retail payment systems, but it is rarely available.
The World Bank Group has developed a comprehensive methodology to estimate retail payment costs for the demand side, supply side, and total economy, while also calculating savings in moving from cash and paper-based to electronic payment instruments. This session will discuss the importance of transparency of the cost of retail payments, introduce the methodology, inform about the first country results applying it, and lay out the next steps.