Summary of key payment statistics for Q2 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: CHAPS E Cash machines withdrawals Summary of key payment statistics for 218 Bacs: 1,66 million Bacs payments were made during the quarter, with 68% of these comprised of Direct Debits. This corresponded with a total of 1,238 billion Bacs payments made with Direct Debits accounting for 27% of the value. Cleared cheques and paper credits: An average of 1. million cheques were cleared per day during with an average value of 1,276 per cheque. Faster Payments: 5 million Faster Payments processed during the quarter amounting to 419 billion and representing record highs. The average value of a Faster Payment stood at 838, down from 84 a year ago. CHAPS: 21.4 trillion was processed in, an increase of 3.7% on. Volumes averaged 197,43 payments per day, an increase of 19% on the same period a year ago. Cash withdrawals: 44.2 billion was withdrawn from cash machines spread over 628 million withdrawals and an average withdrawal of 7, 2 less than the same quarter a year ago. The number of cash machines fell by by 2,4 to 65,379; their lowest total since the end of 211. Cash and cheque transactions rate of rate Total value of 218 growth of growth 1 Cash machine withdrawals 628 mn -6.4% Cash machine withdrawals 44 bn -5.9% Inter-bank cheques cleared 63 mn -15.% Inter-bank cheques cleared 8 bn -11.% Figures rate of () growth 1 Total value of Figures () rate of growth 1 Cash payments 13,12 mn -14.7% Cash payments 174 bn * Cash machine withdrawals 2,597 mn -5.% Cash machine withdrawals 187 bn -3.4% Cheque transactions 2 45 mn -15.1% Cheque transactions 492 bn -1.8% 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 1,66 mn 1.2% Bacs payments 1,238 bn 1.5% Faster Payments 5 mn 2.2% Faster Payments 419 bn 21.5% CHAPS payments 12 mn 14.3% CHAPS payments 21,424 bn 7.5% 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% CHAPS payments 42 mn 6.9% CHAPS 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 items and includes cash acquisition. * Figures for refer to value of transactions and are not comparable to previous years which refer to value of cash acquired.

2 Volume, millions Value, billions Volume, millions A Bacs Direct Credits and Direct Debits Bacs volumes grew by 1.% when compared to the same quarter a year ago to reach 1,66 million in 218. This corresponded to a 1.2% increase in the value. The average Bacs transaction stood at 771, 2 down on a year ago. The number of Direct Debit payments equated to 1,9 million payments in 218 after growing 2.8% on, while the corresponding value grew by 2.5% to reach 333 billion. Around nine in ten UK consumers use Direct Debits to pay some or all of their regular bills 2. Comparing 218 with, there was a marginal decline in the average payment value for Direct Debits to 35. Direct Debits made up 68% of total Bacs payments by volume and 27% by value in 218, similar proportions to a year earlier. The volume of Direct Credits declined by 2.4% to 516 million payments in 218, compared to the same quarter a year ago. By contrast, values rose by.8%, to 95 billion. Around eight in ten employees are paid via Bacs Direct Credit 2. The government uses Bacs Direct Credit to pay nearly all state benefits and pensions in the UK. The average payment value rose by almost 56 to 1,754 in 218 compared to 1,698 in. Volume s Total of which Bacs Direct Credits Bacs Direct Credits Direct Debits Value Volume Value Volume 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 1,589, % 1,222, % 528, ,127 1,6, ,416 Apr 53,497 2.% 389, % 167,91 285,85 335,587 14,12 May 534, % 412,88 4.3% 176,53 32, ,722 19,149 Jun 551, % 421, % 184,533 31,13 367, ,166 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 1,65,89 1.2% 1,237, % 516,12 95,98 1,89, ,65 Apr 515, % 45, % 164,12 296, ,341 19,141 May 553, % 425, % 18, , , ,334 Jun 536, % 46,58 1.5% 171, ,45 364,92 19,175 6 Bacs Direct Credits and Direct Debits Monthly volumes and values 6 65 Bacs payment volumes Average per month UK Payments Administration Limited Total Volume Total Value Direct Debits Direct Credits 1 Per cent growth rates relate to rolling 12 months. 2 Source: UK Finance - UK Payment Markets 218.

3 B Cleared cheques and paper credits 63 million cheques cleared for a value of 8 billion during the quarter. In the year to 218 volumes declined at a rate of 15% while values fell by 11%. These annual rates of change remain unchanged since. The peak number of cheques cleared in a day stood at 1.6 million during 218, similar to a year earlier. Despite the decline in usage, 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. The Cheque and Credit Clearing Company introduced cheque imaging in October. Aside from facilitating a faster cheque clearing process, cheque imaging also opens the potential for new ways of depositing cheques to be introduced, such as via a mobile phone with a camera. The rollout of the new image clearing system is expected to be completed in the second half of million paper credits were cleared for a total of 1.7 billion in 218. On an annual basis, the volume and value of paper credits declined by 23% and 38%, compared with declines of 2% and 13% in. Cheques 2 Credits Volume Value Volume 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% 73,152-15% 9,444-12% 4,385-2% 3,36-13% Apr 22,438-16% 28,66-13% 1,368-21% % May 26,243-15% 31,927-12% 1,567-2% 1,59-13% Jun 24,47-15% 29,858-12% 1,449-2% 1,7-13% 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% 63,39-15% 8,461-11% 3,45-23% 1,739-38% Apr 21,217-14% 27,816-1% 1,139-22% % May 21,776-15% 27,88-11% 1,197-23% % Jun 2,46-15% 25,556-11% 1,68-23% % Cheque volumes Millions per quarter Cheque values Billions per quarter The data for Chart B1 are available only on an annual basis Source: UK Finance - UK Payment Markets Inter-bank payments only. 3 Per cent growth rates relate to 12 rolling months.

4 Volume, millions Value, billions C Real-time payments: Faster Payments There were.5 billion Faster Payments processed for 419 billion in 218. Both volumes and values grew by 25% when compared to. 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 around two thirds of volumes and 61% of values in 218. Following growth rates of 29% and 2% on, SIP volumes and values reached.3 billion and 254 billion respectively. 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 64 million FDP transactions with a value of 132 billion following increases of 37% and 39% from a year ago. FDPs accounted for 13% of faster payments by volume and 31% by value in the current quarter. Standing orders (SOPs) tend to be used in circumstances where a regular payment of a fixed amount must be made, for example, for paying memberships or making regular transfer payments from current accounts to savings accounts. SOPs, including scheme returns, accounted for 2% of Faster Payments by volume and 7.9% by value. Following growth rates of 7.4% and 1.1% on, SOP volumes and values reached 99 million and 33 billion respectively. 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 4,386 14% 92,497 47,83 26,86 336,264 14% 3,53 94, ,226 Apr 123,666 14% 28,897 14,771 79,998 15,296 14% 9,316 29,981 65,999 May 141,21 14% 32,35 15,831 92, ,475 14% 1,393 32,53 73,29 Jun 135,699 14% 31,294 16,482 87, ,492 14% 1,344 32,951 72,198 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, ,73 499,77 2% 99,38 64,27 336,12 418,814 22% 33,86 131, ,76 Apr 169,163 2% 34,328 2,98 113, ,989 21% 11,589 43,664 86,735 May 167,259 2% 32,912 21, , ,567 21% 1,719 44,138 84,71 Jun 163,348 2% 32,14 21,694 19, ,258 22% 1,778 43,85 82,631 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 Volume, millions Value, trillions D Same-day payments: CHAPS Growth of CHAPS transactions continued into the second quarter of 218. CHAPS volumes and values grew by 21% and 3.7% when compared to the same period a year ago. Daily volumes for 218 averaged 197,43 payments, a record high representing a 19% increase on a year ago. In 218 daily values averaged 346 billion, a rise of 2.% on. The value of sterling processed in CHAPS increased significantly from mid- to late, but has since stabilised. The 3 month rolling average peaked at 7.4 trillion per month in September - November. 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 temporary and started to fall away month on month during 218 as expected. However, some of this increase is expected to be permanent. When compared to, an average CHAPS payment declined by 14% to 1.8 million. This is because most of the new payments now settling in CHAPS as a result of structural reform are lower-value transfers between corporate customers of the non-ring fenced bank and retail customers of the ring-fenced 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 CHAPS. In contrast, the higher-value payments between corporate customers remain internalised within the non-ring fenced entity. Volumes Values CHAPS 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 1,14 4% 2,662,91 11% 61 Apr 3,87 3% 6,298,351 1% 18 May 3,471 4% 6,97,831 11% 21 Jun 3,547 4% 7,456,719 11% 22 1,194 4% 21,43,494 11% 64 11,379 7% 21,951,13 11% ,83 1% 2,843,232 1% 63 12,217 14% 21,423,574 7% 62 Apr 4,25 13% 6,773,453 1% 2 May 4,172 13% 7,179,25 9% 21 Jun 4,2 14% 7,47,87 7% CHAPS payment volumes and values rates of growth (rolling 12 month change) -1% -2% CHAPS payments Average value Volume Volume Value (3 month average) Value % 2% 1% %.5. 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. Cash machine numbers fell by 2,4; the fourth consecutive quarter of decline. The number of BBS machines fell by 629 to 27,567; the lowest total in the decade so far and accounting for 42% of the total cash machine estate. However, BBS machines still make up the vast majority of withdrawals. In the year to 218, they made up 63% of withdrawals by volume and 7% by value, down from respective figures of 68% and 75% a year ago. The number of on-site cash machines declined by 645 to 16,788; this is one of the largest ever quarterly reductions and is linked to declining branch numbers. The retail sector accounted for 69% of off-site cash machines at the end of the quarter, up from 64% a year earlier. Excluding retail, all sectors showed a decline apart from public transport where the number of cash machines remained at 1,199. The number of free-to-use machines fell for the second consecutive quarter, by 1,326 to 53,465; the largest quarterly decline on record. There were 628 million withdrawals in 218 corresponding with 44.2 billion withdrawn, down 5.7% and 7.2% respectively on the same point a year ago. In 218, the average withdrawal stood at 7, 2 less than in. cash machines at period end Volume (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% % 65, % 44,24-5.9% 7 2.1% 1 cash machines (end-quarters) 1, Cash withdrawal volumes (quarterly) 5 Free-to-Use ATMs Pay-to-Use ATMs Free to Use ATMs Pay to Use ATMs 1 On-us transactions amounted to some 16% of the total volume and 21% of the total value at the end of Per cent growth rates relate to 12 rolling months.