This study analyzes changes in Finnish and foreign payment methods arising from the liberalization of financial markets and rapidly developing payment and information systems. It is shown at the outset that the liberalization of the financial markets has changed the forms of bank competition. During the period of regulation, it was prudent to create as extensive a network of branches as possible in order to attract tax-free deposi ts. Wi th the liberalization of financial markets and development of ADP techniques more and more payment transactions can be handled by means of elektronic systems. Accordingly, elektronic systems constitute one of the most important factors of competi tion in both the banking and investment sectors. In addition, banks at least in the United States and Canada, are facing new competition from retailers in the mediation of electronic payments.