Summary of key payment statistics for Q1 2018

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1 Contents This page Summary of key statistics A Bacs payments B Cheque & credit transactions C Real-time payments: Faster Payments D Same-day payments: E Cash machines withdrawals Summary of key payment statistics for 218 Bacs: 1,57 million Bacs payments were made during the quarter, with 67% of these comprised of direct debits. This corresponded with total a total of 1,226 billion Bacs payments made with direct debits accounting for 26% of the value. Cleared cheques and paper credits: An average of 1. million cheques were cleared per day during with an average value of 1,234 per cheque. Faster Payments: There were 471 million Faster Payments processed during the quarter amounting to 44 billion. The average value of a Faster Payment stood at 857, up from 851 a year ago. : 2.8 trillion was processed in, an increase of 3.9% on. s averaged 187,345 payments per day, an increase of 2% on the same period a year ago. Cash withdrawals: 41.1 billion was withdrawn from cash machines spread over 577 million withdrawals with the average withdrawal falling by 3 during the quarter to 71. The number of cash machines fell by its largest quarterly amount this decade, by 2,184 to 67,419. Bacs Payments +1.5% Cheque Cleared -16% Faster Payments +17% Growth Payments +1% ATM Withdrawals -6.% Automated Payments s and Values Bacs 76.5% FPS 22.9%.6% Vol 2.1 billion 92.8% Bacs 5.4% FPS 1.8% Val 22,473 billion Cash and cheque transactions rate of rate Total value of 218 growth of growth 1 Cash machine withdrawals 577 mn -6.% Cash machine withdrawals 41 bn -4.8% Inter-bank cheques cleared 65 mn -15.7% Inter-bank cheques cleared 81 bn -11.4% Figures rate of () growth 1 Total value of Figures () rate of growth 1 * Cash payments 15,359 mn -1.7% * Cash payments 24 bn -5.% Cash machine withdrawals 2,597 mn -5.% Cash machine withdrawals 187 bn -3.4% * Cheque transactions mn -14.5% * Cheque transactions bn -11.7% Inter-bank cheques cleared 293 mn -15.% Inter-bank cheques cleared 356 bn -1.9% Automated payments 218 growth 1 Total value of 218 growth 1 Bacs payments 1,57 mn 1.5% Bacs payments 1,226 bn 1.8% Faster Payments 471 mn 17.4% Faster Payments 44 bn 19.% payments 12 mn 1.2% payments 2,843 bn 9.6% Figures () growth 1 Total value of Figures () growth 1 Bacs payments 6,347 mn 2.1% Bacs payments 4,924 bn 3.1% Faster Payments 1,656 mn 16.1% Faster Payments 1,4 bn 17.7% payments 42 mn 6.9% payments 84,82 bn 11.3% 1 Per cent growth rates relate to 12 rolling months. 2 Cheque transactions include inter-bank, inter-branch and in-house cheque items and includes cash acquisition. * Totals are currently. figures are due in 218.

2 , millions Value, billions, millions A Bacs Direct Credits and Direct Debits Bacs volumes grew by 1.8% when compared to the same quarter a year ago to reach 1,57 million in 218. This corresponded to a.8% increase in the value. The average Bacs transaction equated to 781, an 8 decline on the value a year ago. The number of Direct Debit payments equated to 1,52 million payments in 218 after growing 2.8% on, while the corresponding value grew by 1.1% to reach 323 billion. Bewteen these two quarters the average payment value for Direct Debits declined by 5 to 37. Direct Debits made up 67% of total Bacs payments by volume and 26% by value in the current quarter, similar proportions to a year earlier. BACS cumulative growth 1,226 billion 218 Jan218 42,479 million The volume of Direct Credits declined marginally to 518 million payments in 218, when compared to the same quarter a year ago. By contrast, values rose by.7% to 93 billion. The average payment value almost rose by 15 to 1,743 between and 218. Bacs Direct Credits are a popular and cost-effective method for business and Government to make bulk payments, where the value and timing of the payment are known in advance. They are the most common method for businesses and organisations to make payments, including employee wages and account for the main method with which government benefits are paid. Feb ,878 million Mar ,366 million s Total of which Bacs Direct Credits Bacs Direct Credits Direct Debits Value Value Value % % growth 1 mn 1 growth s mn s mn 1,444, % 1,11, % 524,51 823,941 92, ,745 1,513, % 1,135, % 537,92 832, ,529 33,171 1,527,5 3.6% 1,17, % 538,19 861, ,31 39,187 1,594, % 1,173, % 571, ,35 1,22, ,293 1,479,71 3.8% 1,148,92 3.8% 518, , , ,294 1,556, % 1,189,898 4.% 535, ,828 1,21,44 316,7 1,586, % 1,235, % 54, ,695 1,45, ,538 1,596, % 1,22, % 552, ,164 1,43, ,333 1,542, % 1,216, % 519, ,292 1,23, ,44 Jan 54,469 3.% 48, % 167,182 35, ,287 12,579 Feb 485, % 364, % 164, ,748 32,881 98,516 Mar 552, % 443, % 187, , , ,949 1,589, % 1,222, % 528, ,127 1,6, ,416 1,587, % 1,248,525 3.% 526, ,311 1,61, ,214 1,627, % 1,236, % 546,158 94,652 1,81, , ,57,62 1.5% 1,225, % 518,199 93,192 1,51, ,531 Jan 527,321 2.% 42, % 169, ,55 357,747 17,928 Feb 493, % 37, % 162,526 27,21 33,816 1,677 Mar 549, % 452, % 186,99 338, ,3 113,925 6 Bacs Direct Credits and Direct Debits Monthly volumes and values 6 65 Bacs payment volumes Average per month UK Payments Administration Limited Total Total Value Direct Debits Direct Credits 1 Per cent growth rates relate to rolling 12 months.

3 B Cleared cheques and paper credits The annual rate of decline of cheque volumes accelerated in 218, decreasing by 16% annually, to 65 million. This has corresponded with an 11% annual decline in values to 81 billion. This rate of decline has remained relatively unchanged since. Despite these declines, cheques still remain valued by those who choose to use them as they provide a convenient and secure method of payment when the recipient s bank account details are unknown. Recent market research 1 found that in : the most common reason for writing a cheque was to pay a bill (23%); the next most popular reason was to pay a tradesman at home (2%); the two most common reasons for recieving a cheque were gifts (38%) and refunds (25%); and, 55% of consumers said that they had either made or recieved a payment by cheque. 3.7 million paper credits were cleared for a total of 2.3 billion in 218, comparing with respective figures of 4.9 million and 3.9 billion a year ago. Average Cheque Value 218 1,234 1,19 1,138 1,159 Peak Day Cheque Cleared m 1.9m 2.4m 2.1m Average Credit Value Cheques 2 Credits Value Value s % growth 3 mn % growth 3 s % growth 3 mn % growth 3 14,762-12% 119,257-7% 7,734-15% 4,726-1% 12,12-13% 114,547-7% 7,154-17% 4,29-1% 97,227-13% 112,44-9% 6,863-18% 4,462-9% 1,42-13% 18,629-9% 6,298-2% 3,999-12% 89,999-13% 14,345-11% 5,881-21% 4,259-11% 87,813-14% 13,24-11% 5,545-23% 3,516-12% 81,24-14% 97,47-11% 5,377-23% 3,75-14% 85,569-15% 95,14-12% 5,54-22% 3,499-13% 77,939-15% 92,76-12% 4,883-2% 3,886-13% Jan 26,923-14% 31,665-11% 1,722-21% 1,73-12% Feb 23,679-15% 28,144-12% 1,421-21% % Mar 27,337-15% 32,952-12% 1,741-2% 1,26-13% 73,152-15% 9,444-12% 4,385-2% 3,36-13% 69,923-15% 88,216-11% 4,183-2% 2,796-15% 71,947-15% 85,18-11% 3,89-21% 2,15-22% ,384-16% 8,671-11% 3,73-23% 2,36-31% Jan 24,411-15% 29,674-11% 1,48-22% 1,125-25% Feb 2,23-15% 24,925-1% 1,74-22% % Mar 2,77-16% 26,72-11% 1,221-23% % Cheque volumes Millions per quarter Cheque values Billions per quarter The data for Chart B1 are available only on an annual basis More details available in the Cheque and Credit annual review which is available at Inter-bank payments only. 3 Per cent growth rates relate to 12 rolling months.

4 , millions Value, billions C Real-time payments: Faster Payments There were.5 billion faster payments processed in 218, 21% up on a year ago. This coincided with 22% growth in values. The continued increase in faster payment transactions is being driven by the popularity of mobile (via an app on their smartphone or tablet) and online banking (via a web browser accessible through a smartphone, tablet or computer). Growth is also driven by more businesses taking advantage of the near real time functionality and universal reach of the service. The vast majority of faster payments are accounted for by Single Immediate Payments (SIPs), which accounted for nearly two thirds of volumes and 61% of values in 218. Following growth rates of 25% and 18% on, SIP volumes and values reached.3 billion and 247 billion respectively. Feb 123 bn Mar 136 bn Jan 145 bn Forward-dated payments (FDPs) are one-off payments sent and received on a prearranged date, set-up by the customer in advance. They are typically used to pay bills and rent etc. In 218, there were 6 million FDP transactions with a value of 124 billion following increases of 3% and 35% from a year ago. FDPs accounted for 13% of faster payments by volume and 31% by value in the current quarter billion Faster Payments processed in 218 Faster Payments ATVs 218 Standing orders (SOPs) tend to be used in circumstances where a regular payment of a fixed amount must be made, for example, for paying rent or making regular transfer payments from current accounts to savings accounts. SOPs, including scheme returns, accounted for 21% of faster payments by volume and 8.% by value. Following growth rates of 6.2% and 9.9% on, SOP volumes and values reached 98 million and 32 billion respectively. SIP ATV 789 SOP ATV 331 Total ATV 857 FDP ATV 2,58 Payment volumes Payment values of which Standing orders (inc Returns & Forward Dated (inc O n l Standing orders (inc Returns & Scheme Corporate Single i Scheme Total 1 % Returns) Bulk) Immediate n Total 1 % Returns) s growth 2 s s mn growth 2 mn of which Forward Dated (inc Corporate Bulk) Single Immediate 293,837 13% 85,86 39, , ,311 16% 25,63 74, ,51 36,34 13% 86,91 41, , ,296 15% 27,52 75, ,81 315,529 13% 86,676 44,22 184,83 266,377 15% 27,12 8, , ,364 13% 88,167 45,62 198, ,734 15% 28,65 82, ,97 335,82 14% 88,5 43,1 24, ,332 15% 27,95 81, , ,44 14% 89,691 45, ,17 293,88 15% 28,918 85, ,57 362,189 15% 9,91 47, ,83 32,639 15% 28,88 88,93 184,92 375,644 14% 91,99 47,54 237,5 38,228 14% 29,15 89, ,34 389,63 15% 92,284 46,639 25,68 331,611 14% 29,518 92,216 29,877 Jan 129,71 15% 31,169 14,964 83, ,618 15% 9,976 3,885 71,756 Feb 121,258 14% 29,476 14,65 77,132 99,231 14% 9,186 27,915 62,13 Mar 138,644 15% 31,639 17,25 89, ,762 14% 1,356 33,416 75,99 4,386 14% 92,497 47,83 26,86 336,264 14% 3,53 94, ,226 41,989 14% 92,54 48, , ,552 15% 3,732 1, , ,829 16% 98,76 56,626 3, ,264 18% 33, , , ,954 17% 97,978 6, ,527 43,546 19% 32,44 124, ,73 Jan 164,87 17% 34,7 2,41 18, ,782 18% 11,426 43,931 89,426 Feb 148,571 18% 31,674 19,52 97, ,697 2% 1,142 38,276 74,279 Mar 158,295 17% 31,64 2,995 15, ,67 19% 1,873 42,169 83,26 Standing order, Single Immediate and Forward Dated payments Single Immediate Standing Orders Forward Dated Value of Standing order, Single Immediate and Forward Dated payments - Single Immediate Standing Orders Forward Dated 1 Scheme limit increased from 1, to 25, in November. 2 Per cent growth rates relate to 12 rolling months.

5 millions, millions Value, billions D Same-day payments: Growth of transactions continued into the first quarter of 218. volumes and values grew 18% and 3.9% when compared to a year ago. Daily volumes for 218 averaged 187,345 payments, a record high and representing a 2% increase on a year ago. Meanwhile daily values averaged 331 billion, a rise of 5.5% on. Daily averages have topped 3 billion since, surpassing levels last seen during the 28 financial crisis. The value of sterling processed in has increased significantly from mid- onwards. Most of the value (73%) derived from wholesale financial transactions. Structural reform was one cause of the high increase in volumes. This is the ring-fencing of the largest banks, to protect the retail services they provide from wholesale and risk taking activities elsewhere in their banking group. Some of this increase in volumes is expected to be temporary and will fall away later in 218. However, some of this increase is expected to be permanent. The EU referendum related fall of sterling boosted the UK s international trade from mid- onwards, creating higher-than-expected volume growth. When compared to, the average payment size declined by 12% to 1.8 million. This is because most of the new payments now settling in as a result of structural reform are lower-value transfers between corporate customers of the non-ring fenced bank and retail customers of the ringfenced bank within the same banking group. Prior to structural reform, these transactions would have been internalised within the same bank rather than being made through. In contrast, the higher-value payments between corporate customers remain internalised within the non-ring fenced entity. s Values s million 1. million 9.5 million Values trillion 2.1 trillion 18.2 trillion s Values payment volumes and values Average values and actual volumes per month s % growth 1 mn % growth 1 Working Days per Period ,82 4% 16,857,471-5% ,285 4% 16,26,916-5% 61 9,561 3% 17,368,637-3% 65 9,62 3% 17,978,153 1% 64 9,492 3% 18,213,474 4% 62 9,669 3% 18,427,735 8% 63 9,878 4% 19,269,756 1% 65 9,925 4% 19,662,662 1% 63 9,975 4% 2,64,979 11% 64 Jan 3,263 5% 6,58,873 11% 21 Feb 3,5 4% 6,182,818 1% 2 Mar 3,662 4% 7,31,288 11% 23 1,14 4% 2,662,91 11% 61 1,194 4% 21,43,494 11% 64 11,379 7% 21,951,13 11% ,83 1% 2,843,232 1% 63 Jan 3,962 8% 7,325,861 11% 22 Feb 3,761 1% 6,593,179 12% 2 Mar 4,8 1% 6,924,193 1% payment volumes and values rates of growth (rolling 12 month change) -1% -2% payments Average value Value (3 month average) Value % 2% 1% % Growth rates are based on 12 rolling months.

6 Thousands Millions E Cash machines withdrawals 1 Please note that the data in this table show the total number and value of ALL withdrawals processed at UK cash machines, including those not handled by LINK, i.e, withdrawals where the card issuer and ATM owner is the same institution, known as on-us. Those handled by LINK are known as not-on-us. There were 67,419 cash machines in operation at the end of, the lowest total since the second quarter of 213. This decline occured across the whole estate. The number of IAD machines fell below 4, for the first time in over a year. The number of off-site machines has fallen below 5, for the first time in over three years. There were record lows for the number of BBS (28,196) and pay-to-use (12,628) cash machines, following respective declines for the quarter of 194 and 1,823. Pay-to-use machines accounted for 83% of the decline in the total number of cash machines. Three quarters of off-site machines are free-to-use, up from 7% a year ago. There were 577 million withdrawals in 218 corresponding with 41.1 billion withdrawn. This compares with 627 million withdrawals and 44.3 billion in. The average withdrawal declined by 3 during the quarter to 71. Despite accounting for only 42% at year-end, BBS machines still make up the vast majority of withdrawals. In 218, they made up 63% of withdrawals by volume and 69% by value, down from respective figures of 68% and 75% a year ago. cash machines at period end (inc 'on-us' transactions) Cash withdrawals Value (inc 'on-us' transactions) withdrawals where a fee is charged to the cardholder Average % growth % growth value mn increase 2 mn increase 2 % 7, % 44, % % 69, % 47, % 67 2.% 7, % 5,94 1.% % 7, % 5,8 2.6% % 7, % 44, % % 7, % 48, % 7 2.% 7, % 49, % % 7, % 5, % % 7, % 44,35 -.6% % 7, % 47, % % 7, % 48, % 73 2.% 69, % 47, % % , % 41,8-4.8% % 1 cash machines (end-quarters) 1, Cash withdrawal volumes (quarterly) 5 5 Free-to-Use ATMs Pay-to-Use ATMs Free-to-Use ATMs Pay-to-Use ATMs 1 On-us transactions amounted to some 17% of the total volume and 21% of the total value at the end of Per cent growth rates relate to 12 rolling months.