Table of Contents
Executive Summary
-
- Market factors
- NI consumers using less cash, but RoI consumers using more
- Irish consumers moving slowly away from cheque usage
- Slight increase in use of credit transfers by NI and RoI consumers
- Direct debit usage twice as high in NI as in RoI
- Significant increase in card payments by NI and RoI consumers
- Who’s Innovating?
- The consumer
- Cash still king with around three quarters using it regularly
-
- Figure 1: Methods of payment used in-store in the last month, NI and RoI, October 2019
- Most consumers pay online with debit cards or PayPal
-
- Figure 2: Payment methods used online in the last month to pay for any goods, service or bills, NI and RoI, October 2019
- Preference for cashless payment methods, and interested in innovations
-
- Figure 3: Preferences and behaviours relating to payment methods, NI and RoI, October 2019
- Cash has advantages, but the future is cashless (or less cash)
-
- Figure 4: Attitudes towards payment methods, NI and RoI, October 2019
- What it means
The Market – What You Need to Know
-
- Increased cash usage in RoI, but reduced among NI consumers
- Continued decline in cheque usage by NI and RoI consumers
- Number of credit transfers by Irish consumers increasing moderately
- NI consumers using direct debits significantly more than RoI consumers
- Greater use year-on-year of card payments by NI and RoI consumers
Market Drivers
-
- Average UK (incl. NI) consumer makes over 50 payments per month
-
- Figure 5: Average number of payments made each month per person, UK, by type, 2017
- UK (incl. NI) cash withdrawals at lowest point in decade
-
- Figure 6: Number of cash withdrawals from ATMs, millions, UK (including NI), 2009-18
- Decline in availability of free-to-use ATMs in NI further discouraging cash usage
-
- Figure 7: Number of free-to-use ATMs, UK (incl. NI), by region, January 2018 and May 2019
- Cash usage remains stubbornly high among RoI consumers
-
- Figure 8: Value of cash withdrawals from ATMs, billions, RoI, Q2 2016-Q4 2018
-
- Figure 9: Year-on-year volume change, by method of payment, %, RoI, 2017-18
- Cheque usage continuing to decline in Ireland (and across Europe)
-
- Figure 10: Number of payments per capita, cheques, EU, UK (incl. NI) and RoI, 2014-18
- Steady growth in use of credit transfers among Irish consumers
-
- Figure 11: Number of payments per capita, credit transfers, EU, UK (including NI) and RoI, 2014-18
- NI consumers' usage of direct debits around double RoI counterparts’
-
- Figure 12: Number of payments per capita, direct debits, EU, UK (incl. NI) and RoI, 2014-18
- Card payments lead the way among all payment methods
-
- Figure 13: Number of payments per capita, card payments, EU, UK (incl. NI) and RoI, 2014-18
What You Need to Know – Who’s Innovating?
-
- Danske Bank investing in fraud protection efforts
- Nonghyup Bank launches mobile ATM facilities
- Cashless stores on the horizon
- Facebook Pay has a large potential Irish user base
- Helping tourists go cashless
- New Zealand to legalise cryptocurrency salaries
- Cashless payments used to help plant trees
Who’s Innovating?
-
- Mobile ATMs could help support cash transactions in rural areas
- Decathlon goes cashless
- Facebook Pay could be a disruptor
-
- Figure 14: Types of social networks that consumers log on to regularly (ie log on at least once per week), NI and RoI, March 2019
-
- Figure 15: Types of messenger apps that consumers log on to regularly (ie log on at least once per week), NI and RoI, March 2019
- Danske Bank offers NI customers increased security
- Assisting visitors in cashless payments
- New Zealand to legalise cryptocurrency salaries
- Cashless payments used to help plant trees
The Consumer – What You Need to Know
-
- Cash still the most regularly used method of payment for offline payments
- Most consumers pay online with debit cards or PayPal
- Openness to cashless payment methods and new innovations
- Consumers see benefits to cash, but anticipate cashless society
Usage of Payment Methods (Offline)
-
- Cash still reigns supreme for in-store transactions
-
- Figure 16: Methods of payment used in-store in the last month, NI and RoI, October 2019
- Cash usage highest among women and older consumers
-
- Figure 17: Consumers who have used cash as a method of payment in-store in the last month, by gender and age, NI and RoI, October 2019
- Chip and PIN preferred to contactless when using debit card, but only just
-
- Figure 18: Consumers who have used debit cards (chip and PIN) as a method of payment in-store in the last month, by gender and age, NI and RoI, October 2019
- Figure 19: Consumers who have used debit cards (contactless) as a method of payment in-store in the last month, by gender and age, NI and RoI, October 2019
- Credit cards more popular among ABC1s and older consumers
-
- Figure 20: Consumers who have used credit cards (chip and PIN) as a method of payment in-store in the last month, by social class and age, NI and RoI, October 2019
-
- Figure 21: Consumers who have used credit cards (contactless) as a method of payment in-store in the last month, by social class and age, NI and RoI, October 2019
- Declining minorities using direct debits/standing orders and bank transfers
- PayPal a minority but mainstream method for in-store transactions
-
- Figure 22: Consumers who have used PayPal as a method of payment in-store in the last month, by age, NI and RoI, October 2019
- App-based payment methods slowly gaining trust and familiarity
Usage of Payment Methods (Online)
-
- Majority of consumers using debit cards and PayPal online
-
- Figure 23: Payment methods used online in the last month to pay for any goods, service or bills, NI and RoI, October 2019
- Women and under-45s using debit cards online most
-
- Figure 24: Consumers who have used a debit card as a payment method online in the last month to pay for any goods, service or bills, by gender, age and social class, NI and RoI, October 2019
- PayPal a popular payment method across all ages and social classes
-
- Figure 25: Consumers who have used PayPal as a payment method online in the last month to pay for any goods, service or bills, by gender, age and social class, NI and RoI, October 2019
- Credit cards favoured by men, ABC1s and over-55s
-
- Figure 26: Consumers who have used credit cards as a payment method online in the last month to pay for any goods, service or bills, by gender, age and social class, NI and RoI, October 2019
- Younger consumers more likely than older to use bank transfers
-
- Figure 27: Consumers who have used a bank transfer as a payment method online in the last month to pay for any goods, service or bills, by gender and age, NI and RoI, October 2019
Behaviour Relating to Payment Methods
-
- No 'cash attachment' among consumers equates to potential for new innovations
-
- Figure 28: Preferences and behaviours relating to payment methods, NI and RoI, October 2019
- Younger consumers more likely to prefer cashless options
-
- Figure 29: Consumers who prefer cashless methods of payment to cash, by age and social class, NI and RoI, October 2019
- Figure 30: Consumers who rarely carry cash, by age, gender and social class, NI and RoI, October 2019
- Interest in biometric security highest among younger consumers…
-
- Figure 31: Consumers who would be interested in using payment methods that incorporate biometric security, by age, NI and RoI, October 2019
- …but less than a quarter interested in social media app payments
- Fear of being hacked likely a major deterrent to using 'edgy' innovations
-
- Figure 32: Consumers who agree that the prospect of being hacked has put them off using online payment methods, by gender and age, NI and RoI, October 2019
- Enabling charitable donations likely to facilitate speedier adoption
Attitudes Towards Payment Methods
-
- Consumers see benefits of cash, but accept it's not the future
-
- Figure 33: Attitudes towards payment methods, NI and RoI, October 2019
- General – but not resolute – sense that cashless society is inevitable
-
- Figure 34: Consumers who agree with statement that a cashless society is inevitable, by gender and age, NI and RoI, October 2019
- Budgeting benefits of cash recognised across classes and incomes
-
- Figure 35: Consumers who agree with statement that using cash is the easiest way to avoid overspending, by household income and social class, NI and RoI, October 2019
- Consumers – particularly younger – have been won over by contactless
-
- Figure 36: Consumers who agree with statement that contactless payments are more convenient than cash/traditional card payments, by gender and age, NI and RoI, October 2019
- Acceptance, control and security key to increased contactless usage
-
- Figure 37: Agreement with selected statements about contactless payments, NI and RoI, October 2019
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Data sources
- Abbreviations
Back to top