Given this, many economists seem to agree that considerable social savings could be reaped by encouraging the use of more efficient electronic payment systems and by discouraging the use of cash. Correct prices that is, prices which reflect the real costs and which reflect the difference in costs between various payment services could be an important instrument in changing payment behaviour. As to the best pricing method, Humphrey et al. A delicate question is how the charges should be split up between merchants and consumers. Obviously it is not easy to determine objectively whether the Dutch merchants, for example, are paying their part where cash is concerned.
Electronic money deserves a fair chance.