Presentation on theme: "National Payments Plan National Payments Plan November 2014Ronnie O’Toole."— Presentation transcript:
National Payments Plan National Payments Plan November 2014Ronnie O’Toole
2 Current situation Electronic payments around half the northern European level 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.
3 But making a payment costs money! Payments in Ireland today
4 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
Change is happening – Debit Cards Debit card usage has surged in Ireland over the last number of years, increasing 62% since 2009 alone; ‘Contactless’ transactions on debit cards are currently increasing 6.5-fold in a year; Other forms of cashless payment growing in popularity: – 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.
Change is happening – Financial Inclusion EU survey results from 2013* show that 94% of Irish consumers now have a bank account; 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; retail/docs/inclusion/ factsheet-3_en.pdf
Change is happening - cash Cash usage has declined significantly since the onset of the recession; It peaked in 2008 at around €29 billion, before declining sharply subsequently. 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. The European norm is for withdrawals of €2,689 per capita from ATMs, far lower than the Irish figure of €4,375 per capita.
Cashless society … no! 8 Published: December 2008 Less-cash society … yes!
Chequeless society … almost certainly 9 Patricia Simon Ronnie Callan Harris O’Toole (SFA) (Minister) (NPP)
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
14 Improving cash efficiency Making Cash Moving Cash Accessing Cash Trial run in September-November 2013 in Wexford on the possibility of reducing the use of 1c & 2c coins
15 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