Post on 14-Dec-2015
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Current situationIre
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Electronic payments around half the northern European level
• Ireland second only to France in terms of cheque usage;
• Ireland second highest ATM withdrawals per capita;
• Business e-banking penetration levels low ;
• Over half all social welfare paid out in cash.
Direct Debit Debit Card ATM Cheque Counter€0
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• But making a payment costs money!
Payments in Ireland today
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National Payments Plan - Vision
Irish consumers and businesses will have access
to the most innovative payment methods
Cash will remain a widely used method of payment
Cheque usage will fall though will remain available
Change is happening – Debit Cards
• Debit card usage has surged in Ireland over the last number of years, increasing 62% since 2009 alone;
• ‘Contactless’ transactions on debit cards are currently increasing 6.5-fold in a year;
• Other forms of cashless payment growing in popularity:
– Leap Cards up 7.2% in a quarter to 7.2m trips in Q1. Up 57% in a year. Leap now launched in Cork.
– Parking Tag also growing rapidly. 22% of all parking now by Parking Tag – 2m transactions pa.
€2.0 bn
€2.5 bn
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Debit Card Transactions(Ireland 2009-2014)
Value (billions)
Change is happening – Financial Inclusion
• EU survey results from 2013* show that 94% of Irish consumers now have a bank account;
• This compares with only 83% as recently as 2008, evidence that Ireland is rapidly converging with the Northern European norm of 95%-100% of households with access to a bank account;
http://ec.europa.eu/internal_market/finservices-retail/docs/inclusion/20130506-factsheet-3_en.pdf
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Customers Without a Payment Account(Europe, 2013)
Change is happening - cash
• Cash usage has declined significantly since the onset of the recession;
• It peaked in 2008 at around €29 billion, before declining sharply subsequently.
• The fall now appears to have ended, and ATM withdrawals are broadly stable. A small rise in 2013 was attributed to the increase in ATM withdrawals by tourists due to the success of the ‘Gathering.’
• While Ireland up to 2012 was the highest per-capita users of ATMs in Europe, it now is the second highest behind Belgium.
• The European norm is for withdrawals of €2,689 per capita from ATMs, far lower than the Irish figure of €4,375 per capita.
2006 2007 2008 2009 2010 2011 2012 2013€15 bn
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ATM Usage(Ireland, 2006-2013)
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Chequeless society … almost certainly
Patricia Simon Ronnie Callan Harris O’Toole (SFA) (Minister) (NPP)
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Promoting electronic payments
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1. Payment charges
2. New technology
3. Financial Inclusion
4. Expanding choice
Financial Exclusion
Ireland’s rate of financial exclusion has fallen from 17% in 2008 to 6% today.
However:
• Half of all social welfare is still given out over the counter in cash;
• Government has launched the Social Welfare payment strategy which aims for 100% electronic payments;
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Improving cash efficiency
Making Cash
Moving Cash
Accessing Cash
Trial run in September-November 2013 in Wexford on the possibility of reducing the use
of 1c & 2c coins