BREAKDOWN OF THE USE OF NON-CASH PAYMENT INSTRUMENTS assessment (2015 data)

Transcription

1 5 BREAKDOWN OF THE USE OF NON-CASH PAYMENT INSTRUMENTS assessment (5 data)

2 Banque de France 3, rue Croix-des-Petits-Champs 75 PARIS Managing editor: Denis Beau, Director General Financial Stability and Operations Production: Press and Communication Directorate

3 assessment (5 data) Banque de France oversight In the framework of its oversight of non-cash payment instruments set out in Article L4 4 of the Monetary and Financial Code, the Banque de France collected, between February and April, data enabling it to make a breakdown of the payment instruments used in France in 5, in accordance with Article L4 of the French Monetary and Financial Code. For further information on the Bank s oversight of non-cash payment instruments, see the 4 Report on the oversight of payment instruments and financial market infrastructure. 3 The statistics for the euro area and the European Union used in this document are taken from the data collected and published by the European Central Bank 4 in accordance with EU regulation No 4/3 on payment statistics. Brief analysis of the data collected In France, the use of non-cash payment instruments has been increasing steadily since, with the number of transactions growing by 3.% per year on average. In 5,. billion transactions were recorded, up % on 4. The annual growth in payment flows in value slowed in 5, decreasing from 3% in 4 5 to % in 5; the value of payments reached EUR,7 billion. A rise in e-payments In 5, the increase in the payment flows was driven by e-payments, i.e. card payments, credit transfers and direct debits, both in volume (up %, 4% and % respectively) and value (%, 3% and 5% respectively). Indeed, these payment instruments benefited from efforts made by issuers to bolster the protection of transactions, as well as from improved payment speeds including at the European (SEPA instruments) and international levels (payment cards). Consequently, these instruments are increasingly being used by all users: individuals, firms and public entities. They now account for the great majority of payments, with almost % of the volume of non -cash transactions and 5% of their value in 5. Decrease in the use of «national» payment instruments Contrary to the trend observed for e-payment instruments, the use of «national» payment instruments has been declining since. For instance, in 5, cheques and commercial paper (electronic trade bills, LCR, and electronic promissory notes, BOR, contracted, both in volume ( 7% and % respectively) and value ( 3% and % respectively). Note that the downward trend in cheque payments continued to partly be affected by the decree providing for all real estate payments above EUR 3, to be made by credit transfer Article L4-4: The Banque of France shall take the necessary measures to ensure the security of means of payment as defined in Article L 3 3, other than cash, and shall ensure the relevance of the applicable standards in this area. [ ]». Article L4- - I: The Banque de France is authorised to have sent to it by credit institutions, investment firms, mutual funds, financial corporations, insurance and reinsurance companies governed by the Insurance Code and industrial and commercial firms any documents and information necessary for carrying out its core tasks The statistics for the euro area and the European Union used in this document are taken from the data published by the European Central Bank, available at the following link: 5 The statistics presented in this document incorporate the revisions regarding the previous periods. Breakdown of the use of non-cash payment instruments 5 data 3

4 assessment (5 data) via a notary instead of cheque since 5 (against EUR, as of 3). This decree explained the sharp decline in cheque use observed in 3 ( % in value terms), and continued to have a more moderated impact in 4 and 5, in line with the lowering of the threshold. 3 Detailed analysis of the data collected 3 Overall change in non-cash payments In 5, the volume and value of non-cash payments in France rose by % and % respectively compared with 4. The volume of transactions exceeded billion payments with a value exceeding EUR,7 billion. With almost 7.7% of total issuance in 5, France continued to be the second largest non-cash payment issuer in Europe, after moving ahead of Germany (7.5%) in 4. The United Kingdom (.%) remained the largest non-cash payment issuer in Europe. In value terms, France (.%) ranked third after the United Kingdom (37.%) and Germany (.4%). International comparisons are presented in the appendix. 3 Detailed breakdown by payment instrument Card payments, after exceeding the 5% threshold in 4, were France s preferred means of non cash payment in 5, used in 5% of non cash transactions. The number of card payments increased by % compared with 4. In 5,.3 billion payments were made with bank cards or loyalty cards in France. Bank cards remained the preferred instrument for relatively low-value payments (average amount of EUR 4 in 5). This characteristic has tended to strengthen with the development of contactless card payments; card payments only represented.% of the value of non-cash payments in France in 5, or EUR 47 billion, up % year-on-year. France represented.4% of the volume of card payments and.% of their value in the European Union, and is the second largest issuer after the United Kingdom (7.% in volume and 35.% in value) and ahead of Germany (, % in volume and.4% in value). Credit transfers are characterised by large-value transactions: average transaction values stood at EUR, for credit transfers via the large value payment systems Target and EURO, and EUR 3, for SEPA transfers. Consequently, Chart Breakdown in volume of payment instruments used in France < Card payments Large-value transfers (LVT) < < 5 Other transfers E-money Chart Breakdown in value of payment instruments used in France 5 4 < 5 Card payments Large-value transfers (LVT) 3 Other transfers E-money 4 Breakdown of the use of non-cash payment instruments 5 data

5 assessment (5 data) credit transfers account for a predominant share of non-cash payment flows in value terms, i.e. almost % in France in 5, but only % in terms of the number of transactions. Chart 3 Volume of payment instruments used in France (billion transactions) The use of credit transfers increased significantly in 5, both in value (3%) and volume terms (4%). This increase was driven by large-value transfers, whose value rose by 5% (compared with % for SEPA transfers). In the European Union, Germany saw the largest volume of credit transfers, with a share of.%. France ranked third (.4%) behind the United Kingdom (4.5%). In value terms, the ranking differed as the United Kingdom accounted for 3.4% of the total value of credit transfers in the European Union ahead of Germany (.3%) and France (.4%). 4 4 Payment cards Transfers E-money 4 underwent a structural consolidation in 5, due to the migration of the last national payment instruments (interbank payment orders and electronic payment orders) to SEPA direct debits, which was completed in February. This development was underpinned by the increasing use of this type of instrument in France both in volume (%) and in value (5%). Ranking second in volume and value in France, the average value of debit instrument transactions was EUR 374 in 5. In the European Union, Germany remained by far the largest user of debit instruments, accounting for 44.% in value terms and 4.% in volume terms. France ranked third (.5% in value and.% in volume), just after the United Kingdom (.% in value and.5% in volume). continued to lose ground to e-payments, and in particular card payments. Thus, in 5, cheque use fell by 7% in volume and 3% in value compared with 4 to reach.3 billion transactions, with a value of EUR,73 billion. It accounted for % of non-cash payments in terms of volume and 4% in terms of value. The average value of cheque payments was EUR 57 in 5. This rise in the average value can probably be ascribed to the fact that retailers increasingly refuse cheques. In Europe, France is the country that uses cheques by far the most, with.4% of the number Chart 4 Value of transfers in France (EUR billions) 5, 4, 3,,,,,, 7, Chart 5 Value of transactions excluding transfers in France (EUR billions),5,,5, Payment cards E-money Breakdown of the use of non-cash payment instruments 5 data 5

6 assessment (5 data) Average value of transactions by non-cash payment instrument in France (EUR) Non-cash payments Average value in 5 Large value transfers (LVT),357 3,45 Transfers (excl. LVT) 3, Card payments 4 E-money of cheques issued in the European Union, far ahead of the United Kingdom (7.3%) and Italy (.4%). Electronic trade bills and electronic promissory notes, products that come under trade bills specific to each country, experienced a similar trend decline to that of cheques. In 5, they decreased more sharply in terms of value ( %) than volume ( %). Since these instruments are intended for trade, their average unit value is fairly high, i.e. EUR 3,45 in 5 compared with EUR 3,5 in 4. E-money remains a relatively little used payment instrument in France, with only 3 million transactions with a total value of EUR 4 million. When the electronic purse Moneo was abandoned, e-money flows collapsed in 5, down 34% in volume and 4% in value. Although rising, its average transaction value remains modest: EUR per transaction in 5 compared with EUR 7. in 4. France therefore only accounts for.4% in value and.5% in volume of European Union e-money payments. Luxembourg is by far the largest issuer of e-money in Europe, accounting for 7.5% in value and 77.3% in volume, due to the fact that PayPal, Europe s biggest player, is located there. Italy ranks second, with 7.7% in value and 5.% in volume. 3 3 Breakdown of transactions by channel Interbank retail payment systems remain the preferred channels for payments, and account for 74% of payments in volume, against % for intrabank transactions (within an institution), % for intragroup transactions (within a banking group) and % for interbank transactions outside payment systems. SEPA payment instruments make less use of interbank payment systems and greater use of intrabank transactions (up to % of the number of payments for SEPA transfers). Conversely, national payment instruments (cheques, trade bills) make greater use of interbank payment systems. Lastly, payment cards display a more mixed use profile: on the one hand, they rely more on interbank systems, which accounted for 4% of card payments made in 5. On the other hand, card withdrawals were the exception in that they were mainly carried out though the intrabank channel, with almost 4% in 5. This is due to the specific rates applied by many banks that can charge for withdrawals from other banks ATMs, thus encouraging customers to use the ATMs of their own banking group. 3 4 Analysis of cross-border flows Following the migration to SEPA, cross border payments can be made by transfer and direct debit, while harmonising the conditions in which payments are sent and received. For the first time in 5, data collected by the European Central Bank in accordance with Regulation (EU) No 4/3 on payment statistics make it possible to measure the flows between each Member State, on both the sending and receiving sides. Credit transfers are the payment instrument that generated the bulk of cross-border flows: French banks sent EUR 4,3 billion in transfers to the The latter refers to funds transfers between two accounts held in two institutions that do not have capital links, and that do not pass through a payment system, such as bilateral transactions, transactions between customers of two institutions, with one institution being a sub-participant of the other in the same payment system, correspondent banking transactions, etc. Breakdown of the use of non-cash payment instruments 5 data

7 assessment (5 data) Chart Breakdown interbank/non-interbank by payment instrument in volume Total < 74 Transfers < 4 Card withdrawal < Payment cards 4 7 < < Large value systems Retail payment systems Interbank transactions Intragroup transactions Non-interbank system Chart 7 Breakdown interbank/non-interbank by payment instrument in value Total 3 4 Transfers 44 3 Card withdrawal < 75 Payment cards < Large value systems Retail payment systems Interbank transactions Intragroup transactions Non-interbank system European Union in 5, representing % of the transfers issued at the national level. The main recipients of these flows are the United Kingdom (4%, EUR,75 billion), Germany (35%, EUR,533 billion) and the Netherlands (%, EUR 73 billion). On the receiving side, European data are biased by the lack of data provided by the United Kingdom, which limits the scope of this analysis. It should nevertheless be noted that, excluding the United Kingdom, Germany is the largest sender of credit transfers to France (EUR,7 billion in 5), followed by the Netherlands (EUR billion) and Belgium (EUR 33 billion). As regards direct debits, flows to the European Union account for a marginal share of direct debits issued by French institutions (.4%, or EUR.3 billion). Belgium, with % of flows to the European Union in value, or EUR. billion, is the country to which creditors of banks established in France send the most direct debit transactions. It is followed by Germany (%, EUR.3 billion) and the Netherlands (7%, EUR. billion). Breakdown of the use of non-cash payment instruments 5 data 7

8 assessment (5 data) Chart Breakdown of transfers sent from France to European countries Chart Breakdown of debits sent from France to European countries Netherlands Belgium United Kingdom Germany Spain Italy Luxembourg Others Netherlands Belgium Ireland Austria Germany Spain Portugal Italy Luxembourg Others On the receiving side, direct debit transactions sent by foreign creditors to accounts held by French institutions were more significant, and reached EUR 4. billion in 5; cross-border direct debits represented 3% of direct debits received in French accounts. Belgium was by far the largest sender of direct debits with EUR 3 billion in 5 to French accounts, followed by Germany (EUR 4. billion) and the Netherlands ranked third, with EUR. billion in payments, i.e. a better balance between France and the Netherlands. Breakdown of the use of non-cash payment instruments 5 data

9 assessment (5 data) Appendix Breakdown of non-cash payments in 5 (number of transactions in millions, value in EUR billions, average value in euros, change in %) Non-cash payments Number of transactions 5 5/4 change Value of transactions 5 5/4 change Average values Card payments, ,7 +, Credit transfers 3, +4 3,37 +3,454,3-7, ,45 E-money Total, +,7 +,33 Card withdrawal, Chart Relative share of the different payment instruments issued by geographical area a) In volume France European Union Payment cards Euro area 7 3 United Kingdom 3 5 Germany b) In value France European Union Euro area United Kingdom Transfers E-money Germany Chart Share of the three largest European Union Member States in the use of payment instruments a) In volume Total 4 7 Payment cards 4 Debit instruments 53 4 Transfers 3 7 b) In value Total Payment cards France United Kingdom Germany Others 45 7 Debit instruments 33 3 Transfers Others Breakdown of the use of non-cash payment instruments 5 data

10 assessment (5 data) Chart Transfers between European Union countries in value (EUR billions),7,533, n/a Transfers sent from France n/a: Non available. Transfers received in France Breakdown of the use of non-cash payment instruments 5 data

11 assessment (5 data) Chart 3 Debits between European Union countries in value (EUR millions) 3,55 5,3 55 n/a,3,, 4, Debits sent from France n/a: Non available. Debits received in France Breakdown of the use of non-cash payment instruments 5 data