De Nederlandsche Bank
Payment research and statistics
and the involvement of
stakeholders
Thijs Kettenis
Third Macedonian Conference
on Payment and Securities
Settlement Systems
Ohrid, 29 June 2010
De Nederlandsche Bank
Eurosysteem
Agenda

Objectives of payments research

Wholesale payments research
• General overview

Retail payments research
• General overview
• Dutch Payments Reporting Model

Involvement of stakeholders
• Why involve stakeholders?
• National Forum on the Payment System
• Results
De Nederlandsche Bank
Eurosysteem
Introduction (1)
Mission of DNB Payments Division:
 being a strong and influential central bank which
promotes the efficiency, safety and accessibility of the
Dutch payment system
One of the ingredients = Payments Research
 To support our policy and visions
 DNB as a Knowledge Institution
De Nederlandsche Bank
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Introduction (2)
Objectives of payments research:

Monitoring and understanding
developments

Analysing consequences of
policy alternatives

Retail and wholesale payments
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Introduction (3)
Outlets
 DNB policy notes
 DNB Working Paper Series
 DNB Occasional Studies Series
 DNB Quarterly Bulletin
 DNB Annual Report
 DNB Statistical Bulletin
 National and international journals
 Presentations at national and international conferences
De Nederlandsche Bank
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Agenda

Objectives of payments research

Wholesale payments research
• General overview

Retail payments research
• General overview
• Dutch Payments Reporting Model

Involvement of stakeholders
• Why involve stakeholders?
• National Forum on the Payment System
• Results
De Nederlandsche Bank
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Wholesale payments research (1)
Objectives
To monitor and understand interbank payment behaviour
To gain an insight into the possible consequences of
payment incidents
Finding ways to detect payment stress ahead of time
Types of research
 data analyses
 network topology
 scenario analyses
 experiments
De Nederlandsche Bank
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Wholesale payments research (2)
Data sources
TARGET2 transaction records
Behavioural experiments
Close cooperation with:
Other DNB divisions
University of Amsterdam
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Wholesale payments research (3)
Issues of interest:
How to detect stress in the interbank market
Behaviour of banks in stress situations
The impact of individual bank failures on the overall
payment system
The current network of financial institutions and its
evolvement over time
De Nederlandsche Bank
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References
•
Heijmans, R. (2009), Simulations in the Dutch interbank payment system: sensititivity
analysis, DNB Working Paper, No. 199, De Nederlandsche Bank NV, January 2009
•
Heijmans, R. and R. Bosman (forthcoming), Disruptions in large value payment
systems: An experimental approach, DNB Working Paper in progress
•
Ledrut, E. (2007), Simulating retaliation in payment systems: Can banks control their
exposure to a failing participant?, DNB Working Paper, No. 133, De Nederlandsche
Bank NV, March 2007
•
Pröpper, M., I. van Lelyveld and R. Heijmans (2008),Towards a network description
of interbank payment flows, DNB Working Paper, No. 177, De Nederlandsche Bank NV,
May 2008
De Nederlandsche Bank
Eurosysteem
Agenda

Objectives of payments research

Wholesale payments research
• General overview

Retail payments research
• General overview
• Dutch Payments Reporting Model
• Measuring the number of cash payments

Involvement of stakeholders
• Why involve stakeholders?
• National Forum on the Payment System
• Results
De Nederlandsche Bank
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Retail payments research (1)
Objectives
To monitor and understand payment behaviour of consumers,
retailers and banks
To anticipate future developments
To analyse consequences of possible measures
Overview
Preview
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Retail payments research (2)
Issues of interest:
 Costs and benefits of payment instruments
 Perception and usage of payment instruments
 Focus on different consumer groups
 Acceptance of payment instruments by retailers
 Impact of safety and security
 The impact of surcharging
 SEPA: Consumers’ desires and expected costs and benefits
 SEPA: readiness of corporates and retailers
 Competition and price-making forces
 The role of non-banks
 Authenticity and appearance of banknotes
De Nederlandsche Bank
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Retail payments research (3)
Data sources
 Consumer, retailer and bank surveys
• Online, telephone and face-to-face questionnaires
• University of Tilburg (DNB Household Panel)
• Research agencies
• National Forum on the Payment System
Statistics supplied by banks, processors, creditcard
companies and debitcard scheme owner
• Dutch Payments Reporting Model
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Dutch Payments Reporting Model (1)






DNB is trusted party
8 major banks report quarterly on line to statistical
department DNB
Not mandatory
Structured quality control
Strict deadlines & reminder procedures
Output:
• controlled individual data
• accumulated total data for all banks (leveled up for
whole sector)
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Dutch Payments Reporting Model (2)

Collected Data:
• Credit transfers
• Direct debits
• Debit & credit cards
• Accounts
• Infrastructure

Differentiated:
• Users: consumers & businesses
• Domestic & cross border
• Volume & value
• Choice of channel
De Nederlandsche Bank
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2005
2006
2007
2008
2009
2009
Q1
Q2
Q3
Q4
676,036
279,718
694,781
288,557
674,911
273,568
703,736
287,831
25,901
1,338
26,188
1,311
26,165
1,266
26,198
1,255
Numbers of transactions in thousands
Domestic payments
Remote payments
Transfers
2,307,944 2,489,477 2,578,477 2,683,668 2,749,463
922,907 1,027,150 1,067,057 1,115,303 1,129,674
of which paper-based
Standing orders
Express transfers
of which paper-based
74,804
63,009
53,493
47,983
43,084
88,062
6,952
103,894
6,619
104,536
6,325
104,654
6,253
104,452
5,170
12,108
10,740
9,646
10,590
2,016
230,538
1,749
208,227
1,345
208,746
1,227
203,954
893
194,259
248
51,784
228
49,895
211
44,685
206
47,895
1,059,348
1,139,061
1,176,944
1,225,541
1,272,131
308,080
318,695
318,135
327,221
137
4,514
14,811
27,865
43,575
9,179
10,092
11,040
13,264
POS payments
Debit cards
Cards with an e-money function
Credit cardsI
1,509,139 1,646,230 1,796,437 1,968,406 2,157,049
1,333,558 1,451,279 1,588,495 1,756,119 1,946,071
146,925
164,386
174,834
176,122
177,047
495,222
441,521
45,780
546,482
494,905
43,174
532,481
484,656
39,910
582,863
524,989
48,182
7,921
8,403
7,915
9,692
Total domestic payments
3,817,083 4,135,707 4,374,914 4,652,074 4,906,512 1,171,258 1,241,263 1,207,392 1,286,599
Inpayments transfers
Direct debits
Digital invoices
New media payments
28,656
of which paper-based (=1.1.1+1.3.1+1.4)
30,565
33,108
36,165
33,931
307,358
272,985
263,584
253,164
238,236
64,140
60,863
54,542
58,691
524,762
527,908
519,950
521,231
499,947
119,220
129,999
126,867
123,861
12,825
12,695
14,347
14,231
16,570
16,466
18,352
18,252
15,470
15,393
3,747
3,726
3,655
3,635
4,366
4,347
3,702
3,685
86
44
74
42
55
49
39
61
25
52
8
13
7
13
6
13
4
13
POS payments
Debit cards
Credit cardsI
62,685
11,605
51,080
67,106
14,439
52,667
73,453
18,039
55,414
81,821
23,750
58,071
87,712
32,043
55,669
15,772
4,826
10,946
19,424
6,364
13,060
31,496
12,004
19,492
21,022
8,850
12,172
Total cross-border payments (4+5)
75,510
81,453
90,023
100,173
103,182
19,519
23,079
35,862
24,724
30,634
30,634
31,042
31,042
34,009
34,009
39,108
39,108
40,068
40,068
7,631
7,631
9,105
9,105
15,670
15,670
7,662
7,662
3,421
8,654
849
2,178
4,187
316,182
3,137
8,506
798
2,320
4,134
340,160
3,380
8,642
824
2,264
4,213
326,391
3,286
8,642
818
2,285
4,207
331,651
3,254
8,536
802
2,301
4,158
325,361
3,137
8,506
798
2,320
4,134
340,160
Cash transactions
ATM cash withdrawals
OTC withdrawals
Deposits
473,075
15,976
35,711
Cross-border payments
Remote payments
Credit transfers
of which paper-based
1,127
Cheques
Other
of which paper-based (4.1.1+4.2+4.3)
Cash transactions
ATM cash withdrawalsI
1,257
480,158
14,283
33,467
750
866
474,914
13,309
31,727
597
701
478,389
11,908
30,934
512
612
460,043
9,842
30,062
417
494
109,291
2,537
7,392
102
123
119,816
2,712
7,471
95
115
116,812
2,395
7,660
107
126
114,124
2,198
7,539
112
129
Numbers at the end of period
Infrastructure domestic payments
Bank offices
ATMs
Other cash points
Cash deposit machines
E-moneycard loading terminals
Payments terminals
Current accounts
Bank cards
Euro cards
Cards with an e-money function
Credit cardsI
3,341
7,446
3,356
8,114
3,504
8,546
1,773
4,054
252,224
1,960
4,154
265,779
2,037
4,192
306,264
23,573,538 23,473,267 23,746,058 23,824,735 24,042,537 23,531,207 23,694,531 23,620,612 24,042,537
5,465,133 5,128,774 3,053,624 2,717,614 2,148,952 2,426,944 2,360,350 2,283,073 2,148,952
19,939,697 20,350,925 22,275,095 22,493,797 22,241,990 25,405,207 25,710,573 25,930,033 22,241,990
17,532,891 18,203,479 18,132,110 18,249,656 24,065,517 18,212,320 17,369,493 17,550,268 24,065,517De
6,048,104 6,240,776 6,027,084 5,722,393 5,808,238 5,719,230 5,747,967 5,766,893 5,808,238
Nederlandsche Bank
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Dutch Payments Reporting Model (4)

International contributions:
• ECB
• EU
• Wholesale & retail payments &
settlement systems
• 15 tables
• Country data
• Comparative data
• Statistical Data Warehouse
De Nederlandsche Bank
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Dutch Payments Reporting Model (5)

International contributions:
• BIS
• 13 developed countries (incl. US
& Japan)
• Euro area
• Wholesale & retail payments,
settlement data
• 11 tables
• Country data
• Comparative data
De Nederlandsche Bank
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References (1)

Bolt, W., D. Humphrey and R. Uittenbogaard (2008), Transaction pricing and the adoption of
electronic payments: a cross-country comparison, International Journal of Central Banking,
March 2008

Bolt, W., and S. Chakravorti (2008), Consumer choice and merchant acceptance of payment
media, DNB Working Paper, no. 197, De Nederlandsche Bank NV, December 2008

Bolt, W., N. Jonker and C. van Renselaar (2009), Incentives at the counter: An empirical
analysis of surcharging card payments and payment behaviour in the Netherlands, DNB
Working Paper, no. 196, De Nederlandsche Bank NV, December 2009

Bolt, W. and H. Schmiedel (forthcoming) SEPA, Welfare and Payment Competition, ECB
Working Paper in progress

Brits, J.H. and C.C.A. Winder (2005), Payments are no free lunch, DNB Occasional Studies,
vol. 3/no. 2, De Nederlandsche Bank NV, Amsterdam.

EIM (2007), Het toonbankbetalingsverkeer in Nederland: kosten en opbrengsten van
toonbankinstellingen in kaart gebracht, Zoetermeer

Heij, de H. (2009), Banknote Design for the Visually Impaired, DNB Occasional Studies, vol. 6,
no. 2, De Nederlandsche Bank NV, Amsterdam

Bank
Heij, de H. (2007), Public Feedback for better Banknote Design, DNB Occasional Studies, vol. De Nederlandsche
Eurosysteem
5, no. 2, De Nederlandsche Bank NV, Amsterdam
References (2)

Jonker, N., B. Scholten, M. Wind, M. van Emmerik, M. van der Hoeven (2006),
Counterfeit or genuine: can you tell the difference?, DNB Working Paper, No.121, De
Nederlandsche Bank NV, December 2006,

Jonker, N. (2007), Payment instruments as perceived by consumers – a public
survey, vol. 155, issue 3, pages 271-303

Jonker, N. and T. Kettenis (2007), Explaining cash usage in the Netherlands: the
effect of electronic payment instruments, DNB Working Paper, no. 136, De
Nederlandsche Bank, March.

Jonker, N. and A. Kosse (2008), Towards a European payments market: survey
results on cross-border payment behaviour of Dutch consumers, DNB Occasional
Studies, Vol. 6, no. 1, Amsterdam.

Jonker, N. and A. Kosse (2009), The impact of survey design on research
outcomes: a case study of seven pilots measuring cash usage in the Netherlands,
DNB Working Paper, no. 221, De Nederlandsche Bank, August 2009

McKinsey & Company (2006), Payment services in the Netherlands, an analysis of
revenues and costs for banks, Amsterdam.

ECB-DNB (2009), Retail Payments – Integration and Innovation, Conference
proceedings of the joint conference organised by the ECB and DNB on 25-26 May
2009
De Nederlandsche Bank
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Agenda

Objectives of payments research

Wholesale payments research
• General overview

Retail payments research
• General overview
• Dutch Payments Reporting Model

Involvement of stakeholders
• Why involve stakeholders?
• National Forum on the Payment System
• Results
De Nederlandsche Bank
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What is benefit of stakeholders sitting
around the table?

A lot of market parties and financial authorities are involved in the
national payment system
Benefit for market parties
 For users: better knowledge of developments and possibilities;
possibility to jointly express wishes and concerns

For banks: better knowledge and understanding of wishes, needs,
possibilities and developments; possibility to explain developments
Benefit for central bank
 Not all needs are catered for in purely commercial context
 Need for cooperation!

Role for central bank
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The National Forum on the Payment
System

Objective: contributing to an efficient
organisation of the Dutch retail payment
system from a social point of view

Issues regarding:




Accessibility
Efficiency
Security
Technological developments
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Mission and objectives
Making principle agreements about efficiency
measures and measures with respect to the
security, availability and accessibility of payment
services, and standardisation (e.g. joint measures
to stimulate the use of efficient payment products).
 Open and free exchange of ideas about policy
issues in the area of payment services.
 Holding periodic consultations on the bottlenecks
and social consequences of developments in the
payment system.
 Co-operating on the compilation, analysis and
publication of numerical, non-competitive data.

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Composition
Chaired by DNB.
 Broadly composed of institutions representing
providers and users of payment services.
 DNB also performs the secretariat function.
 The Forum meets twice a year.

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Criteria for acceptance
Organisations need to:
 Act on behalf of users or providers of
payment services that represent the
interests of a specific group

Be representative

Make a professional contribution to
realisation of a socially efficient payment
system
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Participants







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
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Netherlands Bankers’ Association
Council of Dutch Retail Businesses
Netherlands Association of Small and Medium-sized Enterprises
User Platform for the Payment System
Dutch Association of Catering Establishments
Dutch Home Shopping Organisation
Netherlands Petroleum Industry Association
The National Consumers Organisation
Senior citizens’ association
Dutch Council of the Chronically Ill and the Disabled
Dutch Organisation of Blind and Partially Sighted People
Observers:
Ministry of Finance
Ministry of Economic Affairs
Currence
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Working groups

The Working Group on Availability and Accessibility:
 How to safeguard and improve the physical
availability and accessibility of payment services for
consumers and entrepreneurs.

The Working Group on Social Efficiency:
 How can social efficiency in the payment system be
improved
 Cost structures and the effectiveness of incentives
for efficient payment behaviour in the light of
technological and social developments
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Working groups

The Working Group on Security:
 How to safeguard the security of the payment
system, partly with a view to enhancement of social
efficiency. Its operations encompasses both
personal security and the security of payment
products.

The Consultation Group on SEPA:
 To monitor and improve the process of the
realization of a uniform European payments area,
and to develop a national change-over and
communication plan for SEPA
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Results of the National Forum
Rounding-off to nearest 5 cents
 Solutions for bottlenecks regarding SEPA
migration
 Agreement on speeding up EMV migration
 Monitoring reports on availability of banking
services
 Guideline for user-friendly EFTPOS terminals
 Research
 Joint information brochures

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Questions?
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