A Retrospective on the Introduction of Prices in the Norwegian Payment System

Abstract

During the 1980s, Norwegian banks introduced direct pricing of customers’ use of payment services. Direct pricing of payment services is relatively uncommon in other countries and Norway thus stands out in relation to the most widespread international practice in this respect. This article provides an account of the transition from free services to direct pricing of payment transactions, and the benefits of the transition. The article draws on theory where relevant, but the focus is on actual events in the period 1970– 1993. During the last 8–10 years of the period, a pronounced transition from payment by cheque to payment by card occurred in Norway. Central factors behind this development are also described.