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Abstract
While it is generally acknowledged that large-value payment systems (LVPS) play a critical role in financial stability, the settlement of retail payments in LVPS receives far less attention. By not taking account of the settlement of retail payments, LVPS operators' strategies miss an important aspect of actual system usage. This may result in a suboptimal system design, and opportunities to improve services for retail payments may not be captured. This article argues that LVPS operators should acknowledge the relevance of retail payments when developing or reviewing their strategy. To this end, it first highlights the relevance of retail payments in a few selected LVPS. It then outlines the benefits and limitations of settling retail payments in LVPS, and identifies factors that contribute to the settlement of retail payments in today's LVPS. The article concludes by suggesting how to reflect retail payment aspects when developing or reviewing LVPS strategy.
