CONSUMERS HERE still love the feel of cold hard cash in their hands and are almost three times less likely to use electronic transactions than people in other European countries, according to the Irish Payment Services Organisation (Ipso).
Each person makes an average of 40 ATM withdrawals each year, totalling almost €5,000, and while Ipso says it has seen a shift towards debit cards and electronic payments, the Republic still remains a long way behind Europe. The organisation wants to push people away from costly cash transactions.
In a report issued yesterday, it claimed the economy could see a “potential boost” of €1 billion each year if there was a significant switch to electronic and card payments.
It said the value of all non-cash transactions in the Republic was 36 per cent last year, in contrast to the EU average of 96 per cent.
It described the increase in the number of people in Ireland using internet banking services over the past four years as notable, with more than 2.8 million customers now registered for online banking.
Although still one of the highest users of cash in the EU, at least as measured by ATM withdrawals on a per capita basis, the volume of cash being paid out of ATMs in Ireland dropped by over €3 billion to €22.3 billion in 2010.
The number of new debit cards exceeded 330,000 in 2010 to bring the total to 3.4 million. Even allowing for the economic downturn, there appeared to be a shift away from cash to debit cards for day-to-day purchases, Ipso said.
The total spend on cards in Ireland last year was €22.8 billion – now exceeding the value of ATM withdrawals (€22.3 billion) for the first time.
Figures for the first half of 2011 indicate the continued rise of card usage and decline of ATM withdrawals.
Ipso chief executive Pat McLoughlin said: “The fact that there is a clear trend towards greater usage of debit cards . . . will come as a boost to retailers and businesses across the country as the speed and efficiency of payments improves.”
