Payments System Board Annual Report – 2014 List of tables

Chapters

Table: Board Meetings in 2013/14 Attendance by Members

Table 1: Australian Non-cash Retail Payments

Table 2: Online Payment Methods

Table 3: Non-cash Retail Payments in Selected CPSS Countries

Table 4: Interchange Fees

Table 5: Typical Features of Personal Credit Cards, by Type

Table 6: Fraud Losses by Transaction Type

Table 7: Organisations Represented on Australian Payments Council

Table 8: Payments in Australia

Boxes

Table A1: Use of Payment Methods over Time

Table A2: Use of Cash and Card Payments for Different Types of Purchases

Board Meetings in 2013/14 Attendance by Members
Number of meetings
Attended Eligible to attend
Glenn Stevens (Governor) 4 4
Malcolm Edey (RBA) 4 4
Gina Cass-Gottlieb 4 4
Paul Costello 4 4
John Laker (APRA)(a) 4 4
Robert McLean 4 4
Catherine Walter 4 4
Brian Wilson 4 4
(a) John Laker's term on the Board ended on 30 June 2014. He was succeeded by Wayne Byres, who was appointed as the APRA representative on 9 July 2014 in terms of section 25B(2) of the Reserve Bank Act.
Table 1: Australian Non-cash Retail Payments
2013/14 Average annual
growth
2008/09–2013/14
Per cent of total Average value Growth, per cent Per cent
Number Value $ Number Value Number Value
Debit cards 40.8 1.2 55 11.9 9.8 14.0 11.2
Credit cards 22.7 1.7 136 8.3 6.4 6.7 5.3
Cheques 2.1 7.8 6,806 −13.5 2.9 −12.4 −3.9
BPAY 4.1 1.8 824 5.5 10.6 7.2 10.3
Direct debits 9.8 37.6 6,928 13.3 4.3 6.8 3.7
Direct credits 20.5 49.9 4,417 6.7 7.4 6.0 2.9
Total 100.0 100.0 1,817 9.2 5.9 8.3 2.8

Sources: BPAY; RBA

Table 2: Online Payment Methods
Australians' domestic payments
2013/14
Per cent of total
2013/14
Growth, per cent
Average annual growth, 2010/11–2013/14
Per cent
Number Value Number Value Number Value
Internet banking-initiated credit transfers 47.6 88.4   10.2 16.8   10.4 13.0
BPAY 21.0 9.6   6.4 11.0   7.5 11.9
Credit cards, debit cards, and specialised payments providers 31.4 2.0   16.5 13.9   21.6 15.3
Total online payments 100.0 100.0   11.3 16.2   12.8 13.0

Sources: BPAY; RBA; specialised payments providers

Table 3: Non-cash Retail Payments in Selected CPSS Countries
Number per capita, 2012
Cheques Direct debits Direct credits Debit card Credit card(a) Total(b)
United States 58 42 28 165 84 377
Sweden <1 31 90 190 40 351
Netherlands 0(c) 82 101 151 7 341
Australia 10 32 72(d) 132 78 324
Korea 9 33 63 50 147 302
United Kingdom 13 54 58 129 35 289
Canada 22 20 28 126 90 286
France 43 54 47 130(e) 274
Belgium <1 26 85 98 13 222
Germany <1 108 75 31 7 221
Switzerland <1 6 97 57 27 187
Brazil 7 22 46 20 24 119
Italy 5 10 21 18 10 64
Saudi Arabia <1 <1 <1 54 2 56
South Africa 1 14 13 26(e) 54
Russia <1 1 19 18 2 40
Mexico 3 1 9 8 5 26
India 1 <1 <1 5 <1 6

(a) Includes charge debit cards
(b) Excludes e-money
(c) Cheques were abolished in the Netherlands in 2001
(d) Includes BPAY
(e) Split between debit and credit cards not available

Sources: ABS; BIS; RBA

Table 4: Interchange Fees(a)
Excluding GST; as at 30 June 2014
Credit card
Per cent
Debit card
Cents unless otherwise specified
MasterCard Visa MasterCard Visa eftpos
Consumer electronic 0.30 0.30   9.1(b) 8.0 4.5
Consumer standard 0.30 0.30   15.8(b) 0.26%(b)
Consumer premium/platinum 0.95 0.93   0.91%(b) 0.50%(b)
Super premium 1.59  
Visa Rewards 1.50 or 1.70(c)  
Visa Signature 1.80  
Consumer elite/high net worth 2.00 1.80 or 2.00(c)  
Commercial 1.00 0.97 or 1.20(d)   0.91% 0.85%
Commercial premium 1.30
or 1.35(e)
1.30
or 1.80(f)
 
Strategic merchant 0.23
or 0.29
0.20
to 0.40
  3.2
or 3.6
2.0
to 60.0
0.0
to 4.5
Government/utility 0.29 0.30   7.0 6.0
Charity 0.00 0.00   0.0 0.0 0.0
Petrol/service station 0.29 0.30   7.0 6.0
Education 0.29 0.30   6.0
Supermarket 0.30   6.0
Insurance 0.30   6.0
Transit 0.30   6.0
Recurring payment 0.29 0.30   10.0 6.0
Contactless(g) 0.29   5.0
Quick Payment Service 0.40   6.0
Micropayment(h)   0.4 0.0
SecureCode merchant 0.30   8.0
SecureCode full 0.30   10.0
Medicare Easyclaim   0.0
Benchmark 0.50 0.50   12.0 12.0 12.0

(a) Fees are paid by the acquirer to the issuer, except for transactions involving a cash-out component
(b) The rate applying to this category increased in November 2013
(c) The higher rate applies if an account is deemed qualified (if spending on that account exceeds a card-specific threshold)
(d) Visa has three types of non-premium commercial rates; the ‘business’ category attracts a fee of 0.97% while the ‘corporate’ and ‘purchasing’ categories attract a fee of 1.20%
(e) 1.30% for the ‘commercial corporate executive’ category and 1.35% for the ‘commercial business executive’ category
(f) 1.30% for the ‘commercial premium’ category and 1.80% for the ‘business signature’ category
(g) MasterCard PayPass transactions equal to or less than $60, excluding commercial credit cards
(h) Transactions with a value equal to or less than $15

Sources: ePAL website; MasterCard website; RBA; Visa website

Table 5: Typical Features of Personal Credit Cards, by Type(a), (b)
As at end June 2014
Number of card products Average annual fee Average interest rate Average spending for $100 voucher (primary and companion card)(c) Range of rewards benefit as per cent of spend (primary and companion card)(c)
$ Per cent $ Per cent
No rewards
Standard, gold and platinum 31 52 16.6
of which:
Low rate 13 79 12.8
Low fee 12 12 19.2
Rewards
Standard or gold 24 85 19.9 17,900 0.25–1.00
Platinum 24 206 20.2 15,900 0.31–1.13
Super premium 8 424 20.0 11,100 0.60–1.25

(a) Reported averages are calculated as a simple average of relevant products' features; the total sample comprises around 90 credit card products offered by the top 10 credit card issuers and selected major merchants; the top 10 issuers are based on issuing market shares calculated from the Bank's Retail Payments Statistics collection; only products which are available to all new cardholders are included in the sample
(b) For the purposes of this table, a rewards card involves the cardholder having the ability to accumulate a store of points, which may be redeemed for goods or services – other benefits such as instant cashbacks, overseas travel insurance and extended warranties are not included; only rewards programs where a $100 shopping voucher can be redeemed are included in the calculations for rewards spending and benefits, but all rewards cards are included in the calculations for the number, annual fee and interest rate
(c) Average of the sum of the required spend for each applicable card; figures do not take into account the ability to earn additional reward points at certain merchants; the value of spending required to obtain a $100 shopping voucher assumes cardholders with a credit card product containing a companion American Express card spend equal amounts on their MasterCard/Visa card and companion American Express card

Sources: RBA; card issuers' websites

Table 6: Fraud Losses by Transaction Type
$ million
2012 2013
All instruments 317 362
Cheques 10 7
All cards 307 355
eftpos and ATM transactions 16 18
Scheme debit, credit and charge cards 291 336
Australian cards used in Australia 111 128
  Card present 38 39
  Card not present 73 89
Australian cards used overseas 134 157
  Card present 24 27
  Card not present 110 130
Foreign cards used in Australia 46 51
  Card present 17 17
  Card not present 30 34

Source: APCA

Table 7: Organisations Represented on Australian Payments Council
Organisation Appointment Method for Member
APCA APCA CEO
Reserve Bank of Australia appointed by Reserve Bank from an operational payments area
ANZ appointed by institution
Commonwealth Bank appointed by institution
National Australia Bank appointed by institution
Westpac appointed by institution
Cuscal elected from ‘other financial institutions’ group
Suncorp elected from ‘other financial institutions’ group
eftpos Payments Australia appointed by the Reserve Bank from ‘payment schemes’ group
Visa appointed by the Reserve Bank from ‘payment schemes’ group
Woolworths appointed by the Reserve Bank from ‘retail acquirers’ group
First Data appointed by the Reserve Bank from ‘other’ group
PayPal appointed by the Reserve Bank from ‘other’ group
Table 8: Payments in Australia
2013/14, daily averages(a)
Number(b) Value(b) Growth since 2012/13 Interbank settlement value in RITS
'000s $ billion Per cent $ billion
Domestic
RITS 42 162.7 3.1 162.7
SWIFT payments (HVCS) 38.7 100.5 3.5 100.5
Debt securities (Austraclear)(c) 3.1 50.3 3.8 50.3
RITS cash transfers 0.2 11.9 −3.6 11.9
Retail payment systems 34,816.3 62.9 5.5 2.9(d)
Equity settlements 718.8 4.0(e) −3.9 0.5
International
CLS 56.8 246.2 −2.2 2.2

(a) Business days
(b) Includes payments between customers of the same financial institution
(c) Excludes intraday and open RBA repurchase agreements, and multilaterally netted interbank settlements arising from the retail payment systems and the equity market
(d) Average prior to (post) the implementation same-day settlement of direct entry payments was $1.9 billion ($3.6 billion)
(e) Gross value of equity trades

Sources: ASX; CLS; RBA

Table A1: Use of Payment Methods over Time
Per cent of all payments
Payment method Number of payments Value of payments(a)
2007 2010 2013 2007 2010 2013
Cash 69 62 47 38 29 18
Cards 26 31 43 43 43 53
Debit cards 15 22 24 21 27 22
Credit and charge cards 11 9 19 23 16 31
BPAY 2 3 3 10 10 11
PayPal(b) na 1 3 na 1 2
Internet or phone banking(b) na 2 2 na 12 10
Cheque 1 1 0 6 3 2
Other 1 1 2 3 3 5

Notes: Excludes entries with missing payment method information
(a) Payments of $9,999 or more are excluded for comparability across surveys because payment value was truncated at $9,999 in the 2007 survey; further, the small number of such payments that occur during any week generates significant volatility in shares over time
(b) Not collected in 2007

Sources: RBA surveys, conducted by Colmar Brunton and Roy Morgan Research

Table A2: Use of Cash and Card Payments for Different Types of Purchases
Per cent of number of payments within each category
Broad merchant categories 2007 2010 2013
Cash Card Cash Card Cash Card
Food retailers 90 10   85 14   72 27
Services 51 27   56 33   50 38
Other 68 17   61 18   46 28
Holiday/leisure 78 19   67 25   43 40
Petrol/transport 60 36   53 43   41 54
Goods retailers 62 35   56 40   40 48
Supermarket 60 39   54 46   38 59
Bills/medical 44 33   25 32   18 42

Notes: Shares for each group do not add to 100 as the shares of other payment types such as personal cheques or PayPal are not shown

Sources: RBA surveys, conducted by Colmar Brunton and Roy Morgan Research