Presentation
to
Merchant Forums
Michele Bullock
Reserve Bank of Australia
May 2008
Non-cash Payments per Capita*
Per year
No
No
Debit cards
60
50
60
Cheques
50
40
40
Direct credits
30
30
Credit cards
20
20
Direct debits
10
10
BPAY
0
0
1994
1996
1998
2000
2002
2004
2006
*Apart from BPAY, data are based on the RBA's Retail Payments Statistics from
2002. Prior data come from APCA and the RBA, and have been adjusted for
differences between these sources and the Retail Payments Statistics.
Sources: ABS; APCA; BPAY; RBA
Payment Share by Number
BPAYOther
Cheque
Credit
Scheme debit
EFTPOS
Cash
Payment Share by Value
Other
BPAY
Cheque
Scheme debit
Cash
Credit
EFTPOS
Scheme debit
EFTPOS
Use of Cash
Per cent of number of payments
%
„ Cash
„ Other methods
%
80
80
60
60
40
40
20
20
0
0-10
11-25
26-50
51-75
76-100 101-150 151-200 201-500
Payment value ($)
500+
0
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Cash Use Across Merchant Categories
Share of payments
%
„ Number
„ Value
%
80
80
60
60
40
40
20
20
0
0
Median Payment Values
Scheme debit
Cash
0
EFTPOS
20
40
Personal cheque
Credit
60
Transaction value
BPAY
80
100
Merchants
Payment Cost Per Transaction
Credit Card EFTPOS
Total
$0.94
$0.33
Resource
(incl. acquirer)
Resource
$0.59
$0.32
$0.43
$0.32
Key Differences
‰ Fees to acquirer
‰ Tender time
Cash
$0.24
$0.23
Merchant Payment Costs
Per average transaction for each payment method
$
$
0.40
0.40
Other
costs
0.30
0.30
0.20
0.20
0.10
0.10
Tender
time
0
0
Credit card
EFTPOS
Cash
Total Payment Costs*
Per average transaction for each payment method
$
$
1.20
1.20
Consumer
1.00
1.00
0.80
0.80
Merchant
0.60
0.60
0.40
0.40
Financial
institution**
0.20
0.20
0
Credit card
EFTPOS
* Resource costs excluding account overhead costs
** Including costs of currency production for cash
Cash
0
Total Payment Costs - Non-point of Sale*
Per average transaction for each payment method
$
$
Consumer
5
5
Merchant
4
4
3
3
2
2
Financial
institution
1
1
0
0
Cheque
BPAY
* Resource costs excluding account overhead costs
Direct debit
Merchant Service Fees
Per cent of transaction values acquired
%
%
American Express
2.5
2.5
Diners Club
2.0
2.0
1.5
1.5
1.0
1.0
Bankcard, MasterCard and Visa
0.5
0.5
0.0
0.0
2003
Source: RBA
2004
2005
2006
2007
EFTPOS Merchant Service Fees
Dollars per transaction
$
$
0.08
0.08
0.06
0.06
0.04
0.04
0.02
0.02
0.00
0.00
-0.02
-0.02
-0.04
-0.04
2003
Source: RBA
2004
2005
2006
2007
Merchants Surcharging Credit Cards
Per cent of surveyed merchants
%
%
20
20
Very large merchants
16
16
Large
merchants
12
12
8
8
Small merchants
4
4
Very small merchants
0
Jun
Dec
2005
Jun
Dec
2006
Jun
Dec
2007
0
Merchants Planning to Apply a Surcharge
Per cent of surveyed merchants
%
%
30
30
Very large merchants
Large
merchants
20
20
Small merchants
10
10
Very small merchants
0
Jun
Dec
2005
Source: East & Partners
Jun
Dec
2006
Jun
Dec
2007
0