Mechanism Design for Near Real-Time Retail Payment and Settlement Systems

• Main Authors: GUO, Zhiling, KAUFFMAN, Robert John, LIN, Mei, MA, Dan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2015
• Subjects: Delays; Real-time systems; Economics; Europe; Technological innovation; Mobile communication; Computer Sciences; E-Commerce; Management Information Systems
• Online Access: https://ink.library.smu.edu.sg/sis_research/2495; https://ink.library.smu.edu.sg/context/sis_research/article/3494/viewcontent/7367e824.pdf
• Institution: Singapore Management University

have made extensive use of interbank netting systems, in which payments are accumulated for end-of-day settlement. This approach, known as deferred net settlement (DNS), reduces the liquidity needs of a payment system, but bears inherent operational risks. As large dollar volumes of retail payments...