Indue Limited 2007
Church Funds &
Charities Summit
31 October 2007
Michele Bullock
Reserve Bank of Australia
Australian Non-Cash Retail Payments
Year to June 2007
Per cent of total
Number
Value
8.6
14.1
Direct debits
10.6
34.8
Direct credits
23.5
47.8
Debit cards
27.7
0.8
Credit cards
25.7
1.5
3.9
1.1
100.0
100.0
Cheques
BPAY
Total
Sources: BPAY; RBA
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
Australian Non-Cash Retail Payments
Average
value ($)
Cheques
4 039
Direct debits
8 062
Direct credits
4 965
Debit cards
68
Credit cards
138
BPAY
671
Total
Sources: BPAY; RBA
2 446
Cheques
2006/07
Share by
number
Share by
value
Average
value
Per cent
Per cent
$
Personal*
32
13
1 646
Commercial
65
61
3 795
3
26
33 124
Financial institution
•Includes agency cheques issued through credit unions and building societies
Source: RBA
Transaction Products Held by
Australian Adults*
Average for year to March 2006
Per cent of adult population that have a:
Deposit account
97
Debit card
91
Credit or charge card
55
Bankcard, MasterCard or Visa card
American Express or Diners Club card
* Aged 18 years or older
Source: Roy Morgan Research
52
9
Credit and Debit Card Accounts
June 2007
Number of accounts
Credit (million)*
Debit (million)
Advances outstanding*
Total ($ billion)
Accruing interest ($ billion)
Average total outstanding per account ($)
* Includes credit and charge card accounts
Source: RBA
13.5
27.0
40.8
29.1
3 014
Number of Card Payments
Year-on-year growth
%
%
30
30
Credit
20
20
Debit
10
0
10
1997
Source: RBA
1999
2001
2003
2005
2007
0
Value of Card Payments
Year-on-year growth
%
%
30
30
Credit
20
20
Debit
10
0
10
1997
Source: RBA
1999
2001
2003
2005
2007
0
Market Shares of Card Schemes
By value of purchases
%
%
Bankcard, MasterCard and Visa
90
90
85
85
%
%
American Express and Diners Club
15
15
10
10
5
2002
Source: RBA
2003
2004
2005
2006
2007
5
Non-cash Payments - International*
Per cent of non-cash payments
%
%
50
50
Cheques
45
45
Payment cards
40
40
35
35
30
30
Other**
25
20
25
1997
1999
2001
2003
* G10 countries, plus Hong Kong and Singapore
** Includes direct credit, direct debit and e-money transactions
Source: BIS
2005
20
Credit and Debit Card Payments per Capita
Compound growth per annum, 2000-2005
%
„ Credit
„ Debit
%
25
25
20
20
15
15
10
10
5
5
0
0
Sources: ABS; APCA; BIS; RBA
Non-cash Payments –
Selected Countries
Per cent of non-cash payments, 2005
US
UK Netherlands
37
14
0
11
Direct debit
8
20
27
11
Direct credit
6
22
32
26
Debit card*
25
30
39
26
Credit card
23
15
2
26
Cheques
* Includes e-money
Source: BIS
Australia
Costs to Merchants
‰ Cheques
– manual nature
– no guarantee of payment
– fees
‰ Direct debits
– no guarantee of payment
– costly if rejected
BUT
– low cost
– automated
Costs to Merchants
‰ Credit cards
– merchant fee
BUT
– guarantee of payment
– can automate
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
Merchant Service Fees
‰ Two components for MasterCard/Visa
– interchange fee
– acquirers’ margin
‰ Interchange has declined
– 0.95% average in mid 2003
– 0.5% average in 2007
– 0% for charities for MasterCard/Visa
‰ Fees for Amex/Diners also declining
– 2.45 to 2.16 (Amex)
– 2.35 to 2.17 (Diners)