More people across Europe are using their debit cards to live within their means rather than borrowing to fund their lifestyles. The debit card is becoming the payment method of choice throughout Europe
This VRL report investigates cards and payments throughout the key economies in Europe
It provides analysis of the main market trends in the UK, Germany, Spain, France, Italy, Ireland, Greece and Portugal
It examines the impact of Europe-wide initiatives that are impacting on the financial services sector
Summary
There is a war on cash in Europe. Used for 6 out of 7 payment transactions in Europe, cash is disliked by governments and financial services organisations alike as it is expensive to manufacture, administer and keep secure. Cash is also the currency of the black economy in Europe and costs governments billions in unpaid taxes alone. This is a particular problem in some of the economically-troubled southern European countries. In Greece, Italy and Spain, for example, tax evasion is estimated to amount to 30%, 25% and 20% of the overall economy, respectively. As these countries and others in Europe attempt to clear budget deficits, governments will be keen for consumers to migrate towards more formal and traceable payments systems such as cards, credit transfers and direct debits. Cash tends to be a more popular payment method in southern European countries, where it accounts for more than 70% of retail sales payments. In the majority of northern European countries, non-cash payments account for the majority of retail sales transactions, with 30% or less being made using cash.
Scope
This report provides an analysis of the cards and payments systems of key countries within the proposed SEPA area, with a particular focus on the main markets in Western Europe
It also provides an assessment of the progress that different types of payment cards have made in light of the progress to full European EMV implementation
The progress that contactless payments are making on the European payments market is also considered
Likewise the growth of e-commerce in the region
Reasons To Buy
There is scope for replacing the reliance on cash and cheques by encouraging the update and use of plastic cards, electronic transfers and new innovations in payments
Consider why it is that stakeholders in financial systems (including governments and financial service organisations) are keen to migrate consumers from the use of cash to more formal and traceable payment methods
Find out about the trials involving contactless cards and mobile handsets in Spain, Italy and the UK
Compare the popularity of various payment methods throughout Europe and realise just how fragmented the market has become
Table of Contents
Table of Contents
Executive Summary
List of Figures
List of Tables
1 Introduction to Cards and Payments in Europe
1.1 Non-cash payments in Europe
1.2 Cash is still king in Europe
1.3 Progress towards SEPA is off target
1.4 Noticeable Efforts - but SEPA'S implementation is far from finished
1.5 SEPA Compliant transfers still lack depth
1.6 Banks and corporate initiatives to migrate to SEPA
1.7 Size and complexity of the European financial sector
1.8 Interchange fees differ by European country
1.9 Contactless payments - the rhetoric and the reality
1.10 Debit cards are reducing the share of other payment methods in some markets
1.11 Consumer confidence is inhibiting consumer spending on cards
1.12 Low consumer confidence will affect spending on cards
1.13 E Commerce and the growth of new payment systems
1.14 PayPal and Payfair are growing their market share
1.15 Non-traditional challengers are beginning to emerge in the European payments market
1.16 EMV migration has reduced the value of fraud losses
1.17 Summary
2 Making inroads into cash reduction in the US
2.1 Cards account for over half of non-cash payments in the UK
2.2 The decline of cash
2.3 The proportion of banked consumers is at an all-time high in the UK
2.4 Debit cards are growing at the expense of cash, cheques and credit cards
2.5 Credit cards take a hit as consumers consolidate cards
2.6 Charge card volumes have remained flat for a decade
2.7 POS and ATM transactions reflect UK market trends
2.8 UK banks cancel 2018 cheque phasing deadline
2.9 Contactless payments are growing
2.10 Contactless payments trials and roll-outs
2.11 Barclaycard converts UK corporate cards portfolio into contactless cards
2.12 Interchange fees have been lowered to encourage merchant participation
2.13 Mobile devices will become the new wallet
2.14 Summary
3 Cash is still king in Germany
3.1 Debit cards dominate the German cards market
3.2 Zentraler Kreditausschuss (ZKA) Scheme
3.3 Credit cards are unpopular with German consumers
3.4 Charge cards have become increasingly popular in Germany
3.5 Prepaid Credit Cards in Germany
3.6 Key issuers in Germany
3.7 Landesbank Berlin
3.8 Barclaycard Germany
3.9 Credit Mutuel-CIC, Targobank
3.10 Visa interchange fees for selected Germany payment methods
3.11 Contactless payments in Germany
3.12 Contactless prepaid card pilot
3.13 Contactless mobile travel in Germany
3.14 German consumers want the banks to manage mobile payments
3.15 Convenience payments dominate mobile payment preferences in Germany
3.16 PayWave and PayPass in Germany
3.17 Over half of German consumers bank online
3.18 Mobile banking is yet to gain popularity in Germany
