The Cards and Payments Industry in Ireland: Emerging Trends and Opportunities to 2020
Summary
GlobalData’s "The Cards and Payments Industry in Ireland: Emerging Trends and Opportunities to 2020", report provides detailed analysis of market trends in the Irish cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, cash, payment cards, direct debit and checks during the review period (2012-2016).
The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review period and over the forecast period (2016-2020). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.
The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.
The report provides top-level market analysis, information and insights into the Irish cards and payments industry, including -
- Current and forecast values for each market in the Irish cards and payments industry, including debit and credit cards.
- Detailed insights into payment instruments including credit transfers, checks, cash, direct debit and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis and payment methods.
- Analysis of various market drivers and regulations governing the Irish cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit and credit cards.
Scope
- On January 1, 2016 the Irish government replaced stamp duty with a surcharge on ATM cash withdrawals, with an aim to discourage use of debit cards at ATMs and drive in-store payments. Until 2016, consumers were charged a flat annual stamp duty of US$2.6 (EUR2.5) on ATM cards, and US$5.3 (EUR5) on combinations of debit and ATM cards, irrespective of frequency of use. This is now replaced with a new tax structure under which cardholders are charged US$0.13 (EUR0.12) per ATM cash withdrawal, with an annual cap of US$2.6 (EUR2.5) on ATM cards, and US$5.3 (EUR5) on combinations of debit and ATM cards. In contrast, debit card transactions at POS terminals are free of charge. This is expected to discourage card use at ATMs and to encourage the use of debit cards for in-store payments.
- In December 2015, the EU-wide cap on the interchange fee was implemented in Ireland. However, the Irish government implemented a debit card interchange fee cap of 0.1%, which is 50% lower than the standard EU cap of 0.2%. The interchange fee cap on credit cards, however, remains at the EU level of 0.3%. While the regulation is expected to substantially impact the profitability of card issuers and schemes, according to the Irish government the cap will help merchants save up to US$37.9 million (EUR36 million) annually, encouraging them to accept card-based payments.
- Irish consumer uptake of contactless technology is rising. The Irish government increased the contactless payment limit from US$15.8 (EUR15) to US$31.6 (EUR30) from October 31, 2015, and on February 16, 2016, Visa Europe announced that 1 million contactless transactions on Visa cards were made every week in Ireland as a result of the increased limit, compared to 2 million transactions per month in September 2015. As of April 2017, around 3 million Visa contactless cards had been issued in Ireland are accepted by more than 20,000 merchants. Almost all major banks, including Kredietbank ABB Insurance CERA (KBC Bank), Allied Irish Banks (AIB), Permanent TSB, Bank of Ireland (BOI) and Ulster Bank now offer contactless cards.
Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the Irish cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the Irish cards and payments industry.
- Assess the competitive dynamics in the Irish cards and payments industry.
- Gain insights into marketing strategies used for various card types in Ireland.
- Gain insights into key regulations governing the Irish cards and payments industry.
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market overview 2
1.2. Key facts 3
1.3. Top five industry events 4
2. PAYMENT INSTRUMENTS 10
2.1. Current payment environment 10
3. E-COMMERCE AND ALTERNATIVE PAYMENTS 12
3.1. E-Commerce market analysis 12
3.2. Alternative payment solutions 14
3.2.1. PayPal 14
3.2.2. Apple Pay 14
3.2.3. Android Pay 15
3.2.4. Visa Checkout 15
3.2.5. MasterPass 15
3.2.6. boon 16
3.2.7. Single-Click 16
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 17
4.1. Regulatory framework 17
4.1.1. SEPA cards framework 17
4.1.2. Payment Services Directive 2 (PSD2) 18
4.1.3. Interchange fee regulation 19
4.2. Anti-Money Laundering (AML) 19
4.3. Foreign direct investment regulations 20
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 21
6. PAYMENT CARDS 24
7. DEBIT CARDS 26
7.1. Debit cards market analysis 26
7.2. Competition in the debit cards market 28
7.3. Debit cards comparison 30
8. PAY LATER CARDS 31
8.1. Pay later cards market analysis 31
8.2. Competition in the pay later cards market 33
8.3. Pay later cards comparison 35
9. PREPAID CARDS 36
10. MERCHANT ACQUIRING 38
11. APPENDIX 41
11.1. Abbreviations and acronyms 41
11.2. Supplementary data 42
11.3. Definitions 53
11.4. Methodology 55
11.5. Bibliography 57
11.6. Further reading 57
List of Tables
Table 1: Ireland, Key Facts, 2016 3
Table 2: Ireland, Regional Benchmarking of Payment Cards, 2016 3
Table 3: Ireland, Mode of Entry of Foreign Banks 20
Table 4: Ireland, Debit Cards Comparison and Key Features, 2017 30
Table 5: Ireland, Gold Credit Cards Comparison and Key Features, 2017 35
Table 6: Ireland, Premium Credit Cards Comparison and Key Features, 2017 35
Table 7: Ireland, Payment Instrument Transaction Values (EUR Billion), 2012-2016 42
Table 8: Ireland, Payment Instrument Transaction Values (US$ Billion), 2012-2016 42
Table 9: Ireland, Payment Instrument Transaction Volumes (Million), 2012-2016 42
Table 10: Ireland, Payment Cards in Circulation by Type (Million), 2012-2020 43
Table 11: Ireland, Volume of Payment Card Transactions (Million), 2012-2020 43
Table 12: Ireland, Value of Payment Card Transactions (EUR Billion), 2012-2020 43
Table 13: Ireland, Value of Payment Card Transactions (US$ Billion), 2012-2020 43
Table 14: Ireland, Debit Cards in Circulation (Million), 2012-2020 43
Table 15: Ireland, Debit Card Transaction Volumes, 2012-2020 44
Table 16: Ireland, Debit Card Transaction Values (EUR), 2012-2020 44
Table 17: Ireland, Debit Card Transaction Values (US$), 2012-2020 44
Table 18: Ireland, Debit Cards in Circulation by Scheme (Thousand), 2012-2016 45
Table 19: Ireland, Debit Card Transaction Values by Scheme (EUR Million), 2012-2016 45
Table 20: Ireland, Debit Card Transaction Values by Scheme (US$ Million), 2012-2016 45
Table 21: Ireland, Debit Card Transaction Values by Issuer (EUR Billion), 2012-2016 45
Table 22: Ireland, Debit Card Transaction Values by Issuer (US$ Billion), 2012-2016 46
Table 23: Ireland, Pay Later Cards in Circulation (Million), 2012-2020 46
Table 24: Ireland, Pay Later Card Transaction Volumes, 2012-2020 46
Table 25: Ireland, Pay Later Card Transaction Values (EUR), 2012-2020 47
Table 26: Ireland, Pay Later Card Transaction Values (US$), 2012-2020 47
Table 27: Ireland, Pay Later Cards in Circulation by Scheme (Thousand), 2012-2016 47
Table 28: Ireland, Pay Later Card Transaction Values by Scheme (EUR Billion), 2012-2016 48
Table 29: Ireland, Pay Later Card Transaction Values by Scheme (US$ Billion), 2012-2016 48
Table 30: Ireland, Pay Later Card Transaction Values by Issuer (EUR Million), 2012-2016 48
Table 31: Ireland, Pay Later Card Transaction Values by Issuer (US$ Million), 2012-2016 48
Table 32: Ireland, Prepaid Cards in Circulation (Thousand), 2012-2020 49
Table 33: Ireland, Prepaid Card Transaction Values (EUR Million), 2012-2020 49
Table 34: Ireland, Prepaid Card Transaction Values (US$ Million), 2012-2020 49
Table 35: Ireland, Merchant Acquiring Transaction Volumes (Million), 2012-2020 49
Table 36: Ireland, Merchant Acquiring Transaction Values (EUR Billion), 2012-2020 49
Table 37: Ireland, Merchant Acquiring Transaction Values (US$ Billion), 2012-2020 50
Table 38: Ireland, Acquirers’ Transaction Volumes (Million), 2011-2015 50
Table 39: Ireland, Acquirers’ Transaction Values (EUR Billion), 2011-2015 50
Table 40: Ireland, Acquirers’ Transaction Values (US$ Billion), 2011-2015 51
Table 41: Ireland, Retail Outlets and Card Accepting Merchants (Thousand), 2012-2020 51
Table 42: Ireland, Debit Card Average Interchange Fees (%), 2011-2015 51
Table 43: Ireland, Debit Card Merchant Service Charge and Interchange Fee (%), 2012-2020 51
Table 44: Ireland, Pay Later Card Average Interchange Fees (%), 2011-2015 51
Table 45: Ireland, Pay Later Card Merchant Service Charge and Interchange Fee (%), 2012-2020 52
Table 46: Key Definitions 53List of Figures
Figure 1: Ireland, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016 10
Figure 2: Ireland, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016 11
Figure 3: Ireland, E-Commerce Value 12
Figure 4: Ireland, Population and Economic Indicators 21
Figure 5: Ireland, ATMs, POS Terminals and Household Consumption 22
Figure 6: Ireland, Payment Cards Transaction Value and Cards in Circulation, 2012-2020 24
Figure 7: Ireland, Debit Card Penetration and Turnover Per Card 26
Figure 8: Ireland, Debit Cards Scheme and Issuer Transaction Value Share, 2016 28
Figure 9: Ireland, Pay Later Card Penetration and Turnover Per Card 31
Figure 10: Ireland, Pay Later Cards Scheme and Issuer Transaction Value Share, 2016 33
Figure 11: Ireland, Prepaid Cards in Circulation and Transaction Value, 2012-2020 36
Figure 12: Ireland, Merchant Acquiring Transaction Volume and Value, 2012-2020 38
Figure 13: Ireland, Acquirers’ Market Shares (%), 2015 39
Figure 14: Ireland, Average Merchant Service Charge and Interchange Fees (%), 2012-2020 40
