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Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
Pat McLoughlin, FSClub (Download)
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Pat McLoughlin, FSClub (Download)

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IPSO Chief Executive Pat McLoughlin's Presentation to the Financial Services Club, Ireland, 25th February 2009. This is part of blog entry that can be found at: …

IPSO Chief Executive Pat McLoughlin's Presentation to the Financial Services Club, Ireland, 25th February 2009. This is part of blog entry that can be found at: http://thefinanser.co.uk/fsclub/2009/03/in-ireland-its-cash-or-cheques-only.html

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  1. Irish Payment Services Organisation Ltd. How Europe's Infrastructural Changes  Impact the Irish Economy and Banks Royal Dublin Society, Ballsbridge February 25th 2009 Pat McLoughlin Chief Executive Chief Executive www.ipso.ie 1
  2. Topics to be Covered Topics to be Covered Examine Our Payments Structure Examine Our Payments Structure Compare With Europe Compare With Europe Outline Difficulties for SEPA Outline Difficulties for SEPA Outline Difficulties for Ireland Outline Difficulties for Ireland National Payments Plan National Payments Plan www.ipso.ie 2
  3. SEPA 4300+ Banks Signed Up for SCT 4300+ Banks Signed Up for SCT SEPA DD Due November  09 SEPA DD Due November ‘09 Cheques and Cash out of Scope Cheques and Cash out of Scope PSD Due November  09 PSD Due November ‘09 Self – regulation at present / reachability Self  regulation at present / reachability www.ipso.ie 3
  4. Payment Statistics  Payment Statistics ‐ Ireland www.ipso.ie 4
  5. Cheques/Other Paper Instruments  Volumes Vl Number of Paper‐Based Payments in Ireland  p y 140 129.9 129.9 128.8 124.6 124.2 Volume in Millions s 120 100 Annual  V 80 6054.9 49.5 47.4 45.3 43.1 40 2003 2004 2005 2006 2007 Cheques / Paper Debits Paper Credits www.ipso.ie 5 Source: IPSO
  6. Cheques/Other Paper Instruments ‐ Values Cheques/Other Paper Instruments  1,000 975.90 975 90 Value of Paper‐Based Payments in Ireland  948.70 885.00 900 845.00 872.00 alue in €Billions 829.00 800 756.00 723.00 Annual Va 700 699.00 660.00 600 Cheques / Paper Debits Paper Credits 500 2003 2004 2005 2006 2007 www.ipso.ie 6 Source: IPSO
  7. Card Payments  Card Payments ‐ Volumes 300 Number of Card Payments in Ireland  250 251.0 204.0 olume in Millions 200 174.1 174.0 150 146.0 137.0 137 0 Annual  Vo 114.0 106.0 105.0 100 99.0 94.6 86.0 79.5 68.0 60.0 60 0 50 Credit Cards Debit Cards Total  0 2003 2004 2005 2006 2007 www.ipso.ie 7 Source: IPSO
  8. Card Payments  Card Payments ‐ Values 25 22.6 Value of Card Payments in Ireland  20 19.3 15.9 15 € Billions 13.8 13.4 12.6 11.2 10.7 10 9.5 9.2 7.5 6.7 5.2 5 4.3 3.7 37 0 2003 2004 2005 2006 2007 Credit Cards Debit Cards Total  www.ipso.ie 8 Source: IPSO
  9. ATM Cash Figures ATM Cash Figures €6,544 €30 €6,600 €28.4 €6,400 €24.9 €24.1 €25 €22.8 €6,200 €6 200€22.0 €22.6 €6,000 €20 €19.3 €5,807 €5,858 €5,800 €15 €15.9 €5,616 €5,580 €5,600 €13.8 €13 8 €11.2 €5,400 €10 2003 2004 2005 2006 2007 Cash Per Capita Cash (€ billions) Cards (€ billions) www.ipso.ie 9 Source: IPSO
  10. Payment Statistics  Payment Statistics ‐ EU www.ipso.ie 10
  11. €0 €7 000 €1,000 €2,000 €3,000 €4,000 €5,000 €6,000 €7,000 Denmark  €526 Bulgaria  €586 Romania €729 Cyprus  €1,368 Slovakia €1,407 Source: ECB Payment Statistics November 2008 Poland €1,413 L Luxembourg €1,538 Italy €1,538 2007 Hungary €1,544 France  €1,676 Cze ech Republic €1,835 5 ATM Cash Per Capita Lithuania €1,93 31 Austria €2,1 151 Latvia €2, ,215 www.ipso.ie Slovenia €2, ,221 Malta €2 2,299 Spain  €2,389 EU total €2,579 Portugal €2,599 Eur ro area total €2,652 Estonia €2,806 Sweden €2,930 EU ATM Cash per Capita EU ATM Cash per Capita Finland €3,112 Belgium €3,212 N Netherlands €3,372 Germany  €3,737 Greece  €3,937 7 Unite ed Kingdom €4 4,471 Ireland €6,544 11
  12. ATM Cash Figures ATM Cash Figures Ireland  v EU ‐ Annual ATM Cash per Capita £6,400 €6,544 £5,900 €5,858 €5,843 £5,400 €5,580 €5,518 £4,900 £4,400 £3,900 £3,400 €2,730 £2,900 €2,634 €2,579 €2,518 €2,443 £2,400 2003 2004 2005 2006 2007 Ireland EU www.ipso.ie 12 Source: ECB Payment Statistics November 2008 and IPSO
  13. 0 10 20 30 40 50 60 0 Bulgaria  0 Hungary 0 Netherlands 0 Poland 0 Estonia 0 Latvia 0 Slovakia Source: ECB Payment Statistics November 2008 0 C Czech Republic 0 Lithuania 0 Sweden 0 Finland 0 Slovenia 0 Austria 1 Luxembourg 1 Romania www.ipso.ie 1 Germany  1 Belgium 2 Denmark  3 Cheques per Capita ‐ 2007 Greece  3 Spain  7 Italy EU Cheque Volumes EU Cheque Volumes 13 EU total 15 E Euro area total 17 Portugal 26 Un nited Kingdom 29 Ireland 32 Malta 33 Cyprus  57 France  13
  14. €0 €50,000 €100,000 €150,000 €200,000 €250,000 Bulgaria  €0 Hungary €0 Netherlands €0 Poland €2 Estonia €7 Slovakia €11 Source: ECB Payment Statistics November 2008 Latvia €13 Slovenia €64 Czech Republic €131 Lithuania €266 Sweden €703 Romania €1,044 Luxembourg €1,063 Austria €2,127 www.ipso.ie Germany  €4,849 Finland €5,671 Belgium €5,948 Denmark  €6,073 EU total €18,704 Cheque Value Per Capita ‐ 2007 Italy €19,674 EU Cheque Values EU Cheque Values Euro area total €21,135 Spain  €25,275 France  €34,203 Portugal €34,225 Malta €37,415 United Kingdom €39,639 Greece  €41,852 Cyprus  €50,51 19 Ireland €213,408 14
  15. EU Credit Transfer Volumes EU Credit Transfer Volumes 140 133 124 Credit Transfers Per Capita  118 120 (Volume) 2007 100 88 85 86 80 71 67 63 57 60 51 51 53 44 41 42 35 36 40 27 28 16 16 18 20 11 12 12 7 3 0 Netherlands Spain  France  Denmark  Hungary Germany  Portugal United Kingdom Belgium Luxembourg Greece  Bulgaria  Malta Romania Cyprus  Poland Latvia Austria Estonia Italy Lithuania Ireland Sweden Slovenia Finland EU total Euro area total Slovakia U www.ipso.ie 15 Source: ECB Payment Statistics November 2008
  16. 0 500 1,000 1,500 2,000 2 000 2,500 3,000 3 000 Bulgaria  15 Poland 20 Ireland 36 Malta 45 Greece  66 Source: ECB Payment Statistics November 2008 Romania 69 Portugal 94 Denmark  113 Sweden 118 Italy 120 Estonia 124 Lithuania 136 Slovenia 148 (Value €'000) 2007 Hungary 153 www.ipso.ie Credit Transfer Per Capita  Spain  226 Latvia 270 Austria 293 Euro area total 328 France  330 Slovakia 344 Netherlands 361 Cyprus  369 EU Credit Transfer Values EU Credit Transfer Values Belgium 385 EU total 537 Germany  573 Finland 753 Luxembourg 1,449 U United Kingdom 2,512 16
  17. 2.5 00 0.0 0.5 1.0 1.5 2.0 0.54 4 Romania 0 0.70 Poland 0.86 Hungary 0.88 Czech  … 0.88 Slovakia C di 0.94 Bulgaria  0.99 Source: ECB Payment Statistics November 2008 Denmark  1.04 Latvia 1.10 Ireland 1.13 Lithuania d D bi C d 1.14 Italy 1.16 Austria 1.29 Greece  1.30 France  1.31 Estonia www.ipso.ie C i 2005 Credit and Debit Cards per Capita 2005 1.32 Germany  1.34 4 Cyprus  1.35 5 Malta (2007)  1.38 8 EU total 1.39 9 Euro area  … 1.61 Slovenia Payment Cards Per Capita 1.65 Belgium 1.65 Sweden 1.67 Spain  EU Payment Cards per Capita EU Payment Cards per Capita 1.71 Portugal 1.77 Finland 1.84 Lu uxembourg 1.91 N Netherlands 2.38 United  … 17
  18. EU Cheque Reduction  EU Cheque Reduction ‐ Progress 104 104 105 103 99 99 100 98 95 95 94 94 90 90 88 89 84 87 85 81 80 81 74 75 72 Cheque Usage Trends q g 71 70 Base Year: 2002 67 65 2002 2003 2004 2005 2006 2007 France Ireland Portugal UK www.ipso.ie 18 Source: ECB Payment Statistics November 2008
  19. Relative Importance of Non‐Cash  Payment Types By Volume (2007) P T B Vl (2007) Ireland EU Relative Importance by Volume (EU ) 2007 Relative Importance by Volume (Ireland) 2007 27.99% 8.58% 19.42% 23.94% 25 38% 25.38% 15.60% 36.93% 41.04% Cheques Cards Direct Debits Credit Transfers Cheques Cards Direct Debits Credit Transfers www.ipso.ie 19 Source: ECB Payment Statistics November 2008
  20. Relative Importance of Non‐Cash  Payment Types by Value (2007) P T b V l (2007) Ireland EU Relative Importance by Value (EU ) 2007 Relative Importance by Value (Ireland) 2007 13.33% 90.67% 6.34% 1.99% 78.34% 3.16% 5.03% 0.56% 0 56% Cheques Cards Direct Debits Credit Transfers Cheques Cards Direct Debits Credit Transfers www.ipso.ie 20 Source: ECB Payment Statistics November 2008
  21. IPSO Advocacy IPSO Advocacy IPSO Policy Paper IPSO Policy Paper IPSO Roadmap Document IPSO Roadmap Document Fiscal Measures Fiscal Measures Strategy on Cheque Elimination Strategy on Cheque Elimination Strategy on Cash Being Developed Strategy on Cash Being Developed www.ipso.ie 21
  22. Lessons Learnt from Other Countries Lessons Learnt from Other Countries • Successful strategies are most effective if Successful strategies are most effective if  there is a strong national consensus • Shared ownership among all stakeholders  needed of the vision and the payment  strategy • There should be no cross subsidies There should be no cross subsidies www.ipso.ie 22
  23. Lessons Learnt from Other Countries Lessons Learnt from Other Countries • Merchants and corporates need to fully Merchants and corporates need to fully  participate in the development of the  strategy tt • If savings are passed on – volumes rise • Cost benchmarkers enable stakeholders  to understand the true costs of each  to understand the true costs of each payment method www.ipso.ie 23
  24. Lessons Learnt from Other Countries Lessons Learnt from Other Countries • Investment in campaigns to persuade Investment in campaigns to persuade  and incentivise customers work • Expected that contactless and mobile  payments will become compelling  convenience propositions • Increase in point of sale devices displaces Increase in point of sale devices displaces  cash by cards www.ipso.ie 24
  25. Next Steps Next Steps • New governance structure needed to New governance structure needed to  provide strategic direction • New National Plan needed covering  vision, objectives, deliverables,  milestones and measures • Barriers need to be identified and Barriers need to be identified and  solutions developed to deal with them www.ipso.ie 25
  26. Next Steps Next Steps • A lead agency to take responsibility for A lead agency to take responsibility for  the development of the plan • A public information and education  campaign needs to be developed • If Ireland does nothing it will fall even  further behind further behind www.ipso.ie 26
  27. National Payments Plan National Payments Plan Government are Leading Government are Leading IPSO / Banks Playing a Key Role Fiscal Policy is Working Competitiveness Benefits for the Economy p y www.ipso.ie 27
  28. NPIP Roadmap  NPIP Roadmap ‐ Background • Discussions with the Department of Discussions with the Department of  Finance • Agreed as discussion document by banks • Changes since its preparation: Changes since its preparation: – Credit Guarantee Scheme – C it li ti S h Capitalisation Scheme – Banks in Government Ownership – Agency Amalgamation www.ipso.ie 28
  29. NPIP Roadmap  Key Questions NPIP Roadmap – Key Questions • What is the best way to include the What is the best way to include the  financially excluded? • How should Government and its agencies  make and secure payments? • What implications does that have for the  industry? • How to influence consumers; SMEs; large  corporations? www.ipso.ie 29
  30. Difficulties for SEPA Difficulties for SEPA Political Case – Not Business Case Political Case – Not Business Case • Investment Climate • Mandate Migration • Public Sector Lead? Public Sector Lead? • Fees Debate / Business Model • www.ipso.ie 30
  31. Difficulties for Ireland Difficulties for Ireland Inefficient Payments Behaviours Inefficient Payments Behaviours • Benefits Multinational Corporates • Will there be an End Date? • Who Will Drive? Who Will Drive? • www.ipso.ie 31
  32. NPIP Roadmap  NPIP Roadmap – Issues • Has the draft roadmap potential use as a Has the draft roadmap potential use as a  consultation document? • How should consultation happen? • Who should consult? Who should consult? • Who should be consulted? • How should it happen? • When should it be completed? When should it be completed? www.ipso.ie 32
  33. pat.mcloughlin@ipso.ie +353 1 663 6740 www.ipso.ie 33

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