Innovation at the Point of Sale

February 2003

On February 27, 2003, the Payment Cards Center of the Federal Reserve Bank of Philadelphia sponsored a conference to examine a variety of new payments options available to consumers paying for goods and services at the point of sale. The conference included diverse representation from the payments industry and Federal Reserve staff.

Conference presentations and discussions focused on current and prospective payments innovations and their implications for payments providers, merchants, and consumers. The need for alignment among these three parties as an essential condition for the success of payments innovation was emphasized throughout the conference discussion. This event benefited from the inclusion of merchants’ perspectives, which are sometimes seen to be at odds with the goals of payment networks and institutional providers.

Although the conference did not resolve the inherent conflict between organizations that drive payments innovation and merchants, it initiated a useful dialogue between industry sectors with divergent views and provided policymakers with a clearer understanding of the interrelationships inherent in retail payments systems.

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