Edelman, Benjamin, and Andrei Hagiu. “Consumer Payment Systems — United States.” Harvard Business School Case 909-006, August 2008. (Revised July 2011.) (educator access at HBP. request a courtesy copy.)
In 2008, the U.S. consumer payments landscape was characterized by the ongoing prevalence of credit and debit card networks, the decline of checks, the rise of stored value cards, and the growth of new payment methods such as PayPal, Bill Me Later, and decoupled debit. This case presents the structure of these payment methods, focusing on incentives for both consumers and merchants, including direct costs, efficiency benefits, rebates, and treatment in case of loss or fraud.
Teaching Materials:
Consumer Payment Systems — United States and Japan – Teaching Note (HBP 909039)