Increasing trend towards card over cash continues

  • Value of debit card transactions expected to surpass ATM withdrawals for the first time in 2015

Banking & Payments Federation Ireland (BPFI) is forecasting that the value of debit card transactions is likely to exceed the amount withdrawn from ATMs for the first time in 2015.

The total number of debit card payments increased by 13.4% during 2014. That translates into 386 million individual transactions, with a value of €19.9 billion.

At the same time €20.3 billion in cash was withdrawn from ATMs – or an average of €56 million per day – during 2014, representing a 0.5% decline from 2013. In volume terms, 163.1 million withdrawals were made from the country’s ATMs during 2014, representing a 2.6% reduction from 2013.

These trends have been constant in recent years. The average annual increase in the value of debit card transactions between 2010 and 2014 was 14.7%, while the average annual decrease in ATM withdrawals was 2.2% over the same period.

Debit Cards and ATM

BPFI believes that there is significant potential for further migration away from cash to cards in 2015, not least in the area of contactless payments, given the increasing availability and use of contactless cards and related infrastructure.

By 2014, personal card payments were equivalent to 33% of personal consumption expenditure (PCE), based on figures from the Central Statistics Office, up from 19% from 2005 – see the chart below. However, credit card transactions declined by 1.3% in 2014, continuing a downward trend since 2011.

Payments as PCE

While there are a number of indicators pointing to a shift away from cash to cards, cash still remains the most common consumer payment method in Ireland. However, reliance on cash for low-value transactions is likely to lessen in the coming year with the wider availability of contactless cards.

The following is a summary of the data compiled by BPFI:

Payment card TX table

Ends/

Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

Contact: Sinead McGovern, ph: 087 6411725

Customer Payments Notice: Pay before 1st May

Banking & Payments Federation Ireland (BPFI) has issued a customer payments notice in light of Friday 1st May 2015 being a European bank holiday – although a normal banking day in Ireland. Salaries and other payments due for payment on May 1st will need to be submitted by Wednesday 29th April to ensure beneficiary accounts are credited on Thursday 30th April. Otherwise, there is a risk that some payments may not be credited to accounts until Tuesday 5th May – because of the impact of the May 1st bank holiday (European) and May 4th bank holiday (Ireland).

May 1st Notice

 

 

 

 

 

 

 

 

 

 

BPFI’s customer payments notice is available to download here. This notice will appear in daily newspapers in the run up to 1st May; also advance notice has been provided to various trade associations.

We have been advised that if you are due to receive a Department of Social Protection payment on Friday 1st May or Monday 4th May you should receive this payment on Thursday 30th April instead.

Ends/

Note: Banking & Payments Federation Ireland is the voice of banking and payments in Ireland, representing over 70 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.

 

Digital Economy – Its Role in the Future of Consumer Payments

The ‘Digital Economy and its Role in the Future of Consumer Payments’ was the focus for discussion at the Banking & Payments Federation Ireland conference on Tuesday 23rd June, from 9.00am – 12.30pm, in The Westin Hotel, Westmorland Street, Dublin 2.

Over the past number of years there has been a notable change in the way we make payments. Cheques now account for less than 10% of all non-cash payments. At the same time we have adopted the use of cards, particularly debit cards to such an extent that we now spend as much on cards electronically as we withdraw from ATMs – whereas the ratio was over 4:1 in favour of ATMs as recently as 2005.

We have also adopted online and, more recently mobile banking, with ease. A remarkable 64 million payments were made through online and mobile banking in 2014, of which about one-in-three were mobile banking payments.

The advent of SEPA (which has created a single euro area for credit transfer and direct debits), the digital and fintech revolution, and emerging legislation aimed at creating more competition in the payments arena (PSD2), will all contribute to the introduction of further innovative payment solutions for both businesses and consumers.

Expert speakers outlined the changes currently underway in the payments industry and painted a picture of the future, providing delegates with an understanding of the impacts and opportunities for their business.

Agenda

The latest copy of the conference agenda is available here.