Recent innovations in inter-bank electronic payments in Mexico: The role of regulation

José L. Negrín, Manager of Financial Service Evalution, Diadelfa Ocampo, Researcher and Alejandro de los Santos, Payment System Specialist, Banco de México

Abstract
In 2004, Banco de México (BM) introduced an innovative, near real-time, no-credit, interbank, large-value payment system (SPEI). Afterwards, BM promoted several institutional changes in order to foster its adoption. As a result of these measures, the SPEI has become a widely used payment system. Using an S-shaped adoption model, the authors find that some of the measures promoted by BM have significantly increased the proportion of SPEI use among its substitutes, even after controlling for demand variables.

Keywords
electronic payments, regulation, adoption, logistic model

José L. Negrin is Manager of Financial Service Evalution at Banco de México. Previously, he worked as a researcher in the economic studies division — also at the Central Bank. He holds a PhD in economics from Rice University, Houston TX (1998) and his areas of interest are regulation, payment systems and competition policy.

Diadelfa Ocampo is a researcher at Banco de México. She holds an MSc in economics from the London School of Economics and Political Science (1999). Her areas of interest are econometrics, growth and regulation.

Alejandro de los Santos is a payment system specialist at Banco de México. He holds a PhD in applied mathematics from the University of Toronto. His areas of interest are financial mathematics, risk management and payment systems.

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