Payment News
Calculating the Cost of Digital Payments
A Bank of Canada Staff Discussion Paper calculates the marginal cost of an electronic funds transfer (EFT) to be about C$0.55 per transaction ($0.4) and the total fixed cost of running an EFT to be C$83 million per year ($60.23 million) 1. The cost curve of an EFT flattens out at a billion transactions.
Perhaps beware, therefore, payment fragmentation particularly in small economies.
Kuwait Enhances its Payment Infrastructure
The Central Bank of Kuwait (CBK) has launched the second version of the Kuwait Automated Clearing House (KACH) System – providing a single, unified platform for processing financial transactions between participating banks.
KACH raises operational efficiency, accelerates transaction processing and enhances accuracy in handling low-value financial transactions between customers of local banks. CBK wants to strengthen Kuwait’s position as a regional hub for financial services.
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