NorGes Bank Papers. Developments in retail payment services No

Transcription

1 Developments in retail payment services 213

2 Norges Bank Papers Norges Bank Address: Bankplassen 2 Postal address: Postboks 1179 Sentrum, 17 Oslo Phone: Fax: central.bank@norges-bank.no Website: ISSN (online) ISBN (online)

3 Developments in retail payment services 213 The number of card payments continued to rise in 213. Norwegian residents remain among the leading users of card payments per year, while the number of ATM withdrawals and point-of-sale (POS) withdrawals declined. This may indicate that cash transactions are steadily falling in Norway. Card transactions abroad and internet purchases using cards continued to increase sharply in 213. As a result, the use of international payment cards accounts for an increasingly larger share of total card transactions. The statistics used in this document have been compiled by Statistics Norway on behalf of Norges Bank. Further details are provided in the tables and are also published on Norges Bank s website. The statistics have in earlier years been presented in Norges Bank s Annual Report on Payment Systems. 1 Use of payment instruments There are two main types of means of payment: cash and bank deposits (in bank accounts). Means of payment can be accessed by using a payment instrument. Payment cards and credit transfers are examples of payment instruments that provide access to banks accounts. Cash can be used without recourse to any other instrument and is therefore both a means of payment and a payment instrument. Debit and credit transfers (giros) Chart 1.1 shows the use of electronic payment instruments. All total, the number of transactions came to 2.3bn in 213. Payment cards accounted for around 7% of transactions, while debit and credit transfers accounted for the remainder. Since 21 the number of debit and credit transfers 1 has increased by a little more than 5%, while the number of transactions using payment cards has increased by close to 3%. 1 Debit transfer: Money transfer initiated by the payee. Credit transfer: Money transfer initiated by the payer. 3

4 Chart 1.1 Use of electronic payment instruments. Transactions in millions Debit and credit transfers (giros) Payment cards (goods purchases) Source: Norges Bank The value of debit and credit transfers totalled a good NOK 14 bn in 213 (see Chart 1.2). Goods purchases 2 with payment cards came to a total of just over NOK 6bn. The average payment came to a little less than NOK 4. Chart 1.2 Use of electronic payment instruments. In billions of NOK Debit and credit transfers (giros). Lefthand scale Debit and credit transfers. Deflated by nominal GDP. Left-hand scale Payment cards (goods purchases). Right-hand scale Payment cards. Deflated by nominal GDP. Right-hand scale Source: Norges Bank In real terms, the value of debit and credit transfers has remained fairly stable over the past 6 7 years. The real value of card payments increased by about 14% in the same period. Retail customers account for a little more than half of all debit and credit transfers, with online banking payments being the clearly largest category (see Chart 1.3). Online banking payments, mobile banking payments and direct debits continued to rise in 213. There is still some use of paper-based giros, but usage is declining every year. 2 Also includes purchases of services 4

5 Chart 1.3 Debit and credit transfers by retail customers. Transactions in millions Online banking Mobile banking 3 25 Direct debit (AvtaleGiro) Telegiro Postal giro Source: Norges Bank In 213, online banking payments by retail and corporate customers numbered 435.8m, an increase of 2% on the previous year. Online banking payments (not including direct debits) account for about 7% of all debit and credit transfers. The number of mobile banking 3 payments (primarily retail customers) increased from 3.3m in 212 to 9m in 213. According to Finance Norway s daily bank survey 4, 39% of the population aged over 15 uses mobile banking in 214. The number of retail and corporate paper-based giros fell by 11% from 212 to 213 and now account for 3.2% of all debit and credit transfers. Use of direct debits increased by 7% on the previous year and accounts for 13.8% of invoice payments. Both the payee and the payer are required to enter into a direct debit agreement with their bank. At end-213, there were 15.6m direct debit agreements between banks and retail and corporate customers, an increase of 8% on 212. Direct debits can be combined with e-invoicing. At the end of 213, there were close to 12m such agreements with retail customers, an increase of 25% on end-212. Today, 1 22 enterprises can issue e-invoices, an increase of 14% between 212 and 213. Card payments In 213, the number of card transactions came to 1.75bn 5 in Norway, an increase of 7.7% on 212. Average use per inhabitant was 347 in 213 (see Chart 1.4) and average value was NOK 443 in 213, down from NOK 456 in Dedicated applications for mobile banking 4 Finance Norway and TNS Gallup (214) 5 Includes goods purchases with and without cash withdrawals and ATM withdrawals. 5

6 Chart 1.4 Card transactions per inhabitant per year and value per card transaction Number of card transactions per inhabitant per year Value per card transaction in NOK Source: Norges Bank The number of Norwegian payment cards issued stands at 12.5m (see Chart 1.5). Since their launch in the latter half of the 197s, usage of such cards has increased every year, with the exception of a small decline between 212 and 213. Chart 1.5 Number of Norwegian payment cards issued. In thousands of NOK Source: Norges Bank The number of transactions in the Norwegian debit card system BankAxept increased by 5.2% between 212 and 213 (see Chart 1.6). The number of transactions using international payment cards (debit, credit and invoice cards) increased by as much as 17.8%. 6

7 Chart 1.6 Use of Norwegian payment cards 1. Transactions in millions Domestic credit cards International payment cards BankAxept cards Payment cards issued in Norway. Source: Norges Bank The market share of BankAxept cards has declined, but remains high (see Chart 1.7). The share fell from 88% in 21 to 78% in 213. The share of total card use for international debit cards rose from 7% to 13% in the same period, and from 2% to 8% for international credit cards. These changes primarily reflect increased use of card payments abroad and increased internet transactions. BankAxept cards can, with few exceptions, only be used domestically and are not used for internet transactions. Excluding such card use, BankAxept s share of total card use was 89% in 213, compared with 92% in 21. Chart 1.7 Use of Norwegian payment cards by function and issuer. Transactions in percent of total number of transactions Billing functions ( payment cards issued by international card companies) Credit cards issued by international card companies Domestic credit cards Debit cards issued by international card companies BankAxept (debit) Source: Norges Bank Chart 1.8 shows a sharp increase in internet goods purchases using Norwegian payment cards over the past years. In 213, internet transactions came to 95.4m, an increase of 28% on 212, for a value of NOK 59.7bn in 213, an increase of 13% on 212. Internet purchases from abroad have shown the largest increase in recent years. 7

8 Chart 1.8 Internet purchases with Norwegian payment cards Transactions in millions Internet purchases in Norway Internet purchases abroad Value in billions of NOK Source: Norges Bank Internet goods purchases account for a growing share of total goods purchases using payment cards (see Chart 1.9). In 213, internet purchases accounted for 5.7% of all purchases by card, and 9.4% of the total value of all transactions using Norwegian cards. Chart 1.9 Internet purchases with Norwegian payment cards. Percentage of total purchases of goods Source: Norges Bank Percentage of total transactions Percentage of total value Chart 1.1 shows the total use of Norwegian payment cards abroad, both at terminals and via the internet. In 213, card use increased by about 25% to 193m transactions. Card use abroad accounted for about 11% of all transactions using Norwegian cards in 213. In value terms, card use abroad accounted for close 15% of the total value of card transactions. 8

9 Chart 1.1 Use of Norwegian payment cards abroad. Transactions in millions Goods purchases Cash withdrawals Source: Norges Bank Chart 1.11 shows that Norway is among the countries with the highest use of cards as a means of paying for goods and services, reflecting a well-developed and efficient debit card system in Norway. Card use in Iceland is higher than in Norway. In Iceland, payment cards are used for invoice payments, in addition to being used for goods purchases and cash withdrawals. Chart 1.11 Number of card transactions per inhabitant. Payments and cash withdrawals. 212 Iceland Norway Norway US Canada Denmark Finland Sweden UK Netherlands Belgium Switzerland Ireland Singapore Germany Poland Sources: Norges Bank, ECB, BIS, Sedlabanki Islands Cash Card use is on the rise, while the use of cash is declining. Chart 1.12 shows the number and value of ATM and POS cash withdrawals. ATM withdrawals came 66.8m in 213, down 9% on 212. POS withdrawals came to 51.1m in 213, also down 9% on 213. The average withdrawal from Norwegian ATMs was NOK 1484 in 213, while the average POS withdrawal was NOK 425. In 21, the corresponding average amounts were NOK 162 and NOK 36. 9

10 Chart 1.12 Cash withdrawals from ATMs and POS terminals ATMs. Transactions in millions POS terminals. Transactions in millions ATMs. Value in billions of NOK POS terminals. Value in billions of NOK The figures for POS cash withdrawals up to 26 are estimated by Nets (previously BBS) and Norges Bank. From 26 the figures include only registered withdrawals. Source: Norges Bank A user can withdraw cash at bank branches, from ATMs and at many POS terminals. The number of ATMs per inhabitant has declined slightly since 28 (see Chart 1.13). In 213, there were.42 ATMs per thousand inhabitants. The number of POS terminals has increased in recent years. In 213, there were 28 such terminals per thousand inhabitants. There were in total 2115 ATMs and payment terminals in Norway in 213. Chart 1.13 Number of POS terminals and ATMs per one thousand inhabitants POS terminals (left-hand scale) ATMs (right-hand scale) Source: Norges Bank The number of ATM cash withdrawals fell by 8.9% between 212 and 213. Use per ATM fell by 7.1%. The average number of withdrawals per ATM came to (see Chart 1.14). The use of POS terminal increased by 6.3% between 212 and 213. Use per terminal increased by 3.2%. Average use per terminal came to

11 Chart 1.14 Use of POS terminals and ATMs per year Withdrawals per ATM (left-hand scale) Payments per POS terminal (right-hand scale) Source: Norges Bank The value of cash in circulation as a share of means of payment available to the public (M1) fell in 213 and came to 5.5% (see Chart 1.15). This is low in an international context (see Chart 1.16). The average value of cash in circulation was close to NOK 5bn in 213, and has shown little change in recent years. Chart 1.15 Value of cash in circulation as a share of means of payment (M1), household consumption and mainland GDP. Percent As a share of M As a share of household consumption As a share of mainland GDP Sources: Statistics Norway, Norges Bank 11

12 Chart 1.16 Cash as a share of means of payments (M1) in selected countries. Percent. 212 US Hong Kong Singapore Euro area Japan Switzerland Canada Iceland Denmark Norway Sweden UK Sources: Norges Bank, ECB, BIS, Sedlabanki Islands 12

13 2 Prices and income from payment services Prices Table 2.1 provides information on prices for different banking and card services. Prices are lower for customers belonging to a bank s loyalty scheme than those not belonging to such a scheme. At the beginning of 213, the average annual fee for a BankAxept card combined with an international VISA card was about NOK 218 for customers belonging to a loyalty scheme and NOKO 277 for customers not belonging to such a scheme, which is a reduction of.5% for the former group and an increase of 3.2% for the latter, compared with the previous year. At the beginning of 214, the average price of a goods purchase using BankAxept was zero for customers belonging to schemes and NOK 1.7 for customers not belonging to schemes. Table 2.1 Retail customers. Prices for domestic payment services and cash withdrawals. Weighted prices as of 1 January. In NOK. Prices Customers who do not belong to loyalty schemes Prices Customers who belong to loyalty schemes Payments Online banking (with CID), per payment Online banking annual fee : : Direct debit (AvtaleGiro), per payment : : Mobile banking (with CID), per payment : : : Mobile banking transfers between own : : : accounts, per transfer Mobile banking info by SMS Credit transfer via postal giro, per payment Giro over the counter account debit, per payment Giro over the counter cash payment, per payment BankAxept cards in payment terminals (EFTPOS), per payment Credit card from international credit card company, annual fee BankAxept cards (combined with debit card from int. card comp.), annual fee ATM withdrawals, debit cards Own bank s ATMs during opening hours, per withdrawal Own bank s ATMs outside opening hours, per withdrawal Other bank's ATMs during opening hours, per withdrawal ATM withdrawals, international credit cards Own bank s ATMs during opening hours, : : : per withdrawal Other bank s ATMs during opening hours, per withdrawal : : : Sources: Norges Bank, Finansportalen.no 13

14 Prices for billing vary widely according to form of payment. The prices are clearly highest for paper-based and manual payment services. Prices for credit transfers via postal giro and cash payments over the counter continued to increase through 213. Cash withdrawals from an ATM belonging to the customer s banks are normally free of charge. Withdrawals from an ATM belonging to another bank costs NOK 5.4 during opening hours for customers belonging to a loyalty scheme and NOK 5.6 for customers not belonging to such a scheme, an increase of 12.5% and 14.3%, respectively, on 212. Online banking payments are free of charge for customers belonging to a loyalty scheme. The list price for this service for customers not belonging to such a scheme is NOK 1.5. Income In 213, banks income from payment services came to almost NOK 7bn, an increase of about NOK.3bn on 212 (see Chart 2.1). Income from retail payment services has followed the rise in income from other banking services. Payment cards account for the largest share of income from payment services, at about 63%, compared with 55% in 26. Chart 2.1 Bank s income from payment services and net interest and Chart commision. 2.1 Bank s In billions income of NOK. from 26 payment 213 services and net interest and commission. In billions of NOK Other Standing orders Cards Giros (electronic) Giros (paper) Cheques Net interest and commision income (right-hand scale) Sources: Statistics Norway, Norges Bank 14

15 Tables General data Table 1: General statistical data for Norway Population (as at 1 Jan., in millions) GDP, market value (in billions of NOK) Mainland GDP, market value (in billions of NOK) Total household consumption (in billions of NOK) EUR in NOK (annual average) Means of payment in Norway Table 2: Means of payment used by the public (at year-end, in millions of NOK) Money supply (M2) Narrow money supply (M1) Banknotes and coins Deposits in current accounts Other deposits Certificates of deposit + units in money market funds Tabell 3: Bank liquidity (in millions of NOK). Annual average Sight deposits Banks deposits at the central : : : : : : : : : : bank at the reserve rate Deposits at the central bank : : : : : : : : : : (F-deposits) Lending (F-loans + D-loans) Average from 3 October

16 Table 4: Banknotes and coins. Annual average (in millions of NOK) Total Total banknotes krone krone krone krone krone Total coins krone krone krone krone krone krone : : : : : : : Payment infrastructure Table 5: Institutional infrastructure Number of banks : Savings banks : Commercial banks : Number of foreign bank : branches in Norway Electronic money institutions : :

17 Table 6: Number of agreements Online banking agreements Online banking agreements retail customers Online banking agreements corporate customers Agreements to offer electronic invoicing (efaktura) corporate customers 1 Agreements on reciept of electronic invoicing (efaktura) retail customers 1 Company terminal giro agreements Postal giro agreements Direct debit agreements (Avtalegiro and Autogiro) Avtalegiro payees Autogiro payees : : : : : : : : : : : : : : : : : : : : : : Agreements for offering and receiving electronic invoicing i banking networks 17

18 Table 7: Number of cards issued (in thousands), number of functions in cards issued (in thousands) and number of terminals Number of cards issued Chip cards : : : : : Magnetic stripe cards : : : : : Number of functions in cards issued Debit functions Bank cards/bankaxept Payment cards issued by international card companies Billing functions (payment cards issued by international card companies) Credit functions Domestic credit cards Payment cards issued by international card companies E-money 2 : : : : : : : : : : : : 339 Number of terminals that accept BankAxept cards ATMs Payment terminals (EFTPOS) Owned by banks : : : : Owned by others : : : : Number of locations with payment terminals (EFTPOS) that accept BankAxept cards Figures as from 213 include e-money cards and travel accounts in card systems that are not linked to physical cards 2 Prepaid VISA and MasterCard issued by banks 18

19 Retail payment services Table 8: Use of payment services (in millions of transactions) Total Debit and credit transfers (giros) Electronic Paper-based Payment cards (goods purchases) Electronic Manual Cheques The figure for electronic giro for 21 does not include miscellaneous credit transfers, e.g. standing orders Table 9: Debit and credit transfers (giros) (in millions of transactions) Total Credit transfers Electronic Company terminal giro Online banking Online banking solutions for 62. : retail customers Online banking solutions for : : corporate customers Mobile banking : : : : : : Mobile banking solutions for : : : : : : retail customers Mobile banking solutions for : : : : : : : corporate customers Telegiros Miscellaneous other electronic : credit transfers Paper-based Company terminal giros and online banking as money order Postal giros Giros delivered at the counter account debits Miscellaneous giros registered in banks Direct debits Giros delivered at the counter cash payments 1 The figure for 21 does not include miscellaneous credit transfers, including standing orders. 2 Include both cash payments and account debits. 19

20 Table 1a: Use of payment cards (in millions of transactions) Total use of Norwegian cards (in Norway and abroad) Goods purchases Goods purchases without cashback Goods purchases with cashback Cash withdrawals without goods purchases Use of Norwegian cards by function Debit functions BankAxept Payment cards issued by international card companies Billing functions (payment cards issued by international card companies) Credit functions Domestic credit cards Payment cards issued by international card companies E-money 3 : : : : : : : : : : : Use of Norwegian cards abroad Goods purchases Cash withdrawals Use of foreign cards in Norway Goods purchases Cash withdrawals Figures in the table apply to both manual and electronic card use (card use in EFTPOS terminals and online). 2 The figures for 21 do not include the use of international payment cards and national credit cards in terminals owned by others than banks and oil companies. The figures for use of international payment cards in terminals include the use of cards on the Internet. 3 Include all use of gift cards in Norway and prepaid VISA cards and MasterCard cards issued by banks in Norway. The figure for 212 only includes use of prepaid cards in EFTPOS terminals which accept BankAxept. The figures for 213 includes all use of the cards in Norway and abroad. 2

21 Table 1b: Use of terminals (in millions of transactions) Use of Norwegian terminals Cash withdrawals from ATMs Goods purchases in EFTPOS terminals that accept bank cards/bankaxept Of which bank cards/ BankAxept goods purchases with cashback Goods purchases in other Norwegian payment terminals Use of Norwegian cards in Norwegian terminals Cash withdrawals from ATMs BankAxept Domestic credit cards Cards issued by international card companies Goods purchases in payment terminals Bank cards/bankaxept goods purchases (including purchases with cashback) in EFTPOS terminals BankAxess goods : : : : : : : purchases Domestic credit cards goods purchases Cards issued by international card companies goods purchases E-money goods purchases 2 : : : : : : : : : : :.2.6 Cards issued by oil companies Use of foreign cards in Norway Include the use of cards in all norwegian owned terminals placed in Norway and abroad. Goods purchases in domestic terminals also includes use of cards on the internet. For 213 payments from travel accounts in card systems outside the internet also included. 2 Include the use of gift cards, prepaid VISA cards and MasterCard cards. The figure for 212 includes only the use of these cards in EFTPOSterminals which accept BankAxept. The figures for 213 include all use of terminals in Norway. Table 1c: Use of cards for transactions on the internet (in millions of transactions) Use of Norwegian cards (in Norway and abroad) Norwegian cards in Norway Norwegian cards abroad Use of foreign cards in Norway The use of cards on the internet is also included in the figures for goods purchases and use of cards by function i table 1a. The use of foreign and Norwegian cards in Norwegian networks is also included in table 1b. 21