National Payments Plan
November 2014
Ronnie O’Toole
Current situation
400
Electronic payments around half
the northern European level
200
•
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.
100
Finland
Sweden
Netherlands
Denmark
Austria
UK
Belgium
France
Germany
0
Ireland
Number of Payments per capita
300
2
€8
Payments in Ireland today
€7
€6
• But making a payment costs money!
€5
€4
€3
€2
€1
€0
Direct Debit
Debit Card
ATM
Cheque
Counter
3
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
4
Change is happening – Debit Cards
Debit Card Transactions
•
•
•
Debit card usage has surged in Ireland
over the last number of years, increasing
62% since 2009 alone;
(Ireland 2009-2014)
€5.0 bn
€4.5 bn
‘Contactless’ transactions on debit cards
are currently increasing 6.5-fold in a
year;
€4.0 bn
€3.5 bn
Other forms of cashless payment
growing in popularity:
–
–
€3.0 bn
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.
€2.5 bn
Value (billions)
€2.0 bn
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
'09 '09 '09 '09 '10 '10 '10 '10 '11 '11 '11 '11 '12 '12 '12 '12 '13 '13 '14
Change is happening – Financial Inclusion
Customers Without a Payment Account
(Europe, 2013)
•
•
EU survey results from 2013*
show that 94% of Irish consumers
now have a bank account;
60
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;
40
50
30
20
10
0
Romania
Bulgaria
Poland
Italy
Hungary
Lithuania
Greece
Slovakia
Portugal
Czech…
Cyprus
Latvia
Spain
Ireland
Malta
Luxembourg
Belgium
UK
Slovenia
France
Estonia
Austria
Germany
Sweden
Netherlands
Finland
Denmark
http://ec.europa.eu/internal_market/finservicesretail/docs/inclusion/20130506-factsheet-3_en.pdf
Change is happening - cash
ATM Usage
(Ireland, 2006-2013)
€31 bn
•
•
•
•
Cash usage has declined significantly since the onset of
the recession;
€29 bn
It peaked in 2008 at around €29 billion, before declining
sharply subsequently.
€27 bn
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.
€25 bn
€23 bn
€21 bn
€19 bn
•
The European norm is for withdrawals of €2,689 per
capita from ATMs, far lower than the Irish figure of
€4,375 per capita.
€17 bn
€15 bn
2006 2007 2008 2009 2010 2011 2012 2013
Cashless society … no!
Less-cash society … yes!
8
Chequeless society … almost certainly
Patricia
Callan
(SFA)
Simon
Harris
(Minister)
Ronnie
O’Toole
(NPP)
9
Promoting electronic payments
400
3. Financial
Inclusion
300
2. New
technology
200
1. Payment
charges
100
Finland
Sweden
Netherlands
Denmark
Austria
UK
Belgium
France
Germany
0
Ireland
Number of Payments per capita
4. Expanding
choice
10
New Technology
Payments by mobile
Contactless
11
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;
12
Expanding Choice
13
Improving cash efficiency
Making
Cash
Trial run in September-November
2013 in
Moving
Accessing
Wexford on the possibility of reducing the use
Cash
Cash
of 1c & 2c coins
14
National Payments Plan
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
15