OF NON-CASH PAYMENT INSTRUMENTS 2018 ......2019/05/03 · Chart 2 Volume of transactions by payment instrument in France (billion transactions) 18 17 9 < 1 < 1 56 Cheques LCR/BORa)

BREAKDOWN OF THE USE OF NON-CASH PAYMENT INSTRUMENTS

2017

2018 assessment (2017 data)

Banque de France 39, rue Croix-des-Petits-Champs – 75001 PARIS

Managing Editor: Nathalie Aufauvre, Director General Financial Stability and Operations

Technical production: Press and Communication

Breakdown of the use of non-cash payment instruments | 2017 data 3


Table 1 Breakdown of non-cash payments in 2017(number of transactions in millions, value of transactions in EUR billions, average transaction value in EUR, change in %)

Non-cash paymentsNumber of transactions Value of transactions

Average value2017 2017/2016 change

2017 2017/2016 change

Card paymentsa) 12,581 +13 530 +6 42Direct debits 4,091 +3 1,579 +6 386Credit transfers 3,870 +3 24,069 +2 6,220

o/w large-value transfersb) 10 +5 9,482 -6 977,085Cheques 1,927 -10 1,002 -7 520LCR/BORc) 81 -2 260 -2 3,217Electronic money 55 +45 1 +52 16Total 22,605 +7 27,441 +2 1,213

Card withdrawals 1,481 -1 135 +4 91

Source: Banque de France.a) Card payments made in France.b) Large-value transfers made through large-value payment systems (Target2 and EURO1). They correspond exclusively to professional payments.c) LCR: Lettre de change relevé (electronic trade bills); BOR: Billet à ordre relevé (electronic promissory notes).

1| Use of non-cash payment instruments in France

In 2017, the volume of non-cash payments (in number of transactions) rose by 7% to more than 22 billion, while their total value increased by 2% to reach EUR 27,441 billion.

This increase was mainly driven by a rise in e-payments (card payments, credit transfers, direct debits), while the use of national payment instruments, such as cheques and trade bills, continued the downward trend observed since the 2000s (respectively down 10% and 2% in volume and down 7% and 2% in value).

As in previous years, payment cards remained the most popular method of payment in France,

Chart 1 Breakdown of the number of transactions by payment instrument in France(%)

Chart 2 Volume of transactions by payment instrument in France(billion transactions)

18

179

< 1< 1

56

ChequesLCR/BORa)

Electronic money

Card paymentsDirect debitsCredit transfers

0

2

4

6

8

10

14

12

2006 2007 2008 2009 2010 201320122011 2014

Cheques

Electronic moneyCard payments

LCR/BORa) Card withdrawalsDirect debits

Credit transfers

2015 2016 2017

Source: Banque de France.a) LCR: Lettre de change relevé (electronic trade bills); BOR: Billet à ordre relevé (electronic promissory notes).


accounting for more than half (56%) of non-cash payments. However, the average value of an individual card payment was relatively modest, falling slightly to EUR 42 in 2017 from EUR 45 in 2016 and EUR 49 in 2015; this decline can be attributed to the sharp growth in contactless payment (EUR 12 on average).

While the number of card withdrawals declined over the year, the average amount withdrawn increased to EUR 91 in 2017 from EUR 89 in 2016 and EUR 84 in 2015. This could be attributed to the increased use of contactless payments for small purchases, which means fewer cash withdrawals from ATMs.

Breakdown of the use of non-cash payment instruments | 2017 data4


Chart 4 Total value of transactions excluding credit transfers in France(EUR billions)

ChequesLCR/BORa)

Electronic money

0

500

1,000

1,500

2,000

2,500

Card paymentsDirect debits

2007 2008 2009 2010 2011 2012 2013 2016 201720152006 2014


Chart 5 Total value of credit transfers in France

(EUR billions)

2007 2008 2009 2010 2011 2012 2013 2016 201720152006 201417,000

18,000

19,000

20,000

21,000

22,000

23,000

24,000

25,000

Source: Banque de France.

In 2017, credit transfers accounted for 88% of the total value of non-cash payments (35% for large-value transfers (LVT) and 53% for other transfers), but only 17% of the total volume of transactions. These figures were stable compared to previous years.

Credit transfers are thus mainly characterised by large-value transactions of over EUR 1 million for credit transfers via the large-value payment systems Target2 and EURO1, and EUR 3,779 for SEPA transfers.

Lastly, as a result of the rise in peer-to-peer payment services (particularly through mobile phone applications), the value of e-money transactions

Table 2 Average transaction amount by non-cash payment instrument in France(EUR)

Non-cash payments Average value in 2017

Large-value transfers (LVT) 977,085

Other credit transfers 3,779

LCR/BORa) 3,217

Cheques 520

Direct debits 386

Card payments 42

Card withdrawals 91

Electronic money 16


Chart 3 Breakdown of the value of transactions by payment instrument in France(%)

ChequesLCR/BORa)

Electronic moneyCard payments

Direct debits

Other credit transfersLarge-value transfers (LVT)

36

1 2

3553


has also significantly increased; however, the use of e-money remains modest compared to other means of payment, both in terms of the total value of payments (1 billion euros) and average transaction amount (16 euros).

Interbank payment systems remain the preferred channels of exchange. They account for 74% of the total volume of payments (mainly via retail payment systems) and 65% of the total value (34% for large-value payment systems and 31% for retail payment systems). Intrabank transactions (within the same institution) account for 15% of the total volume of payments and 22% of the total value; intragroup transactions (within the same banking group) account for 10% of the total volume of



Chart 6 Breakdown of the volume of transactions by channel of exchange and payment instrument(%)

82

70

42

64

74

8

15

49

27

15

9

15

6

7

10

Credit transfers

Direct debits

Total2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016Cheques

Card withdrawals

Card payments

LCR/BORa)

Large-value payment systemsRetail payment systems

0 20 3010 70 905040 60 80 100

Intrabank transactionsIntragroup transactions

Outside the system

1

3

1

2

79 6 14 1

77 14 9


Chart 7 Breakdown of the value of transactions by channel of exchange and payment instrument

(%)

0 20 3010 70 905040 60 80 100

43

34

77

78

83

75

36

22

31

13

7

7

13

58

22

22

9

14

9

11

6

3

5

1

1

1

1

10

8

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

2016

2017

Cheques

LCR/BORa)

Card payments

Direct debits

Card withdrawals

Credit transfers

Total

Large-value payment systemsRetail payment systems

Intrabank transactionsIntragroup transactions

Outside the system


payments and 5% of the total value. Finally, interbank transactions outside payment systems represent 1% of the total volume of payments and 8% of the total value. The breakdown is overall homogeneous between the different payment methods, with the exception of card withdrawals. In fact, banks’ policy of charging for withdrawals

made outside their networks means that a large share are intrabank transactions (which represent 49% of the volume of transactions and 58% of the value).

Between 2015 and 2016, the breakdown of payments by channel of exchange remained relatively stable, both in terms of volume and value.



Chart 8 Breakdown of the volume of transactions by payment instrument and geographical area(%)

Chart 10 Breakdown of the volume of transactions by payment instrument and country (%)

01020304050607080

100

France EuropeanUnion

Euroarea

UnitedKingdom

Germany

902 3

1<1 3 4 <1<1

1 2 1


OthersCheques

Electronic money

56 52 44

70

21

18 1923

14

49

17 24 24

1529

9

01020304050607080

100

Total Cardpayments

Directdebits

Transfers Cheques

90

FranceUnited KingdomGermany

ItalyOther

BelgiumNetherlandsSpain

16 18 16 12

7222

3017

14

15

166 41

20

1

3 3

2

5

6 6

5

7

6 6

9

4

2

5 4

3

4

626 27

7

35

4

Source: European Central Bank. Source: European Central Bank.

Chart 9 Breakdown of the value of transactions by payment instrument and geographical area(%)

Chart 11 Breakdown of the value of transactions by payment instrument and country (%)

01020304050607080

10090

2 1 1 11 13 5 7

3 2 1 <111<1

1 <11

6

88 94 91 97 92

France EuropeanUnion

Euroarea

UnitedKingdom

Germany


OthersCheques

Electronic money

01020304050607080

10090

10 18 178

35

3735

17 38

20

19 9 44 19

2 3

1

28

4

39

45

74

36

53

17 206

17

45

Total Cardpayments

Directdebits

Transfers Cheques

FranceUnited KingdomGermany

ItalyOther

BelgiumNetherlandsSpain

Source: European Central Bank. Source: European Central Bank.

2| Use of non-cash payment instruments in Europe

card payments (30% of the total volume and 35% of the total value) and transfer payments (14% of the total volume but 38% of the total value).

In 2017, Germany and France both ranked 2nd in the EU behind the United Kingdom for the use of non-cash payments in terms of the number of transactions, and 2nd and 3rd respectively in terms of the total value of transactions. In addition, France stands out as the biggest user of cheques, since it issues 72% of the number of cheques in the EU, far outstripping the United Kingdom (15%) and Italy (6%).

In the European Union (EU), and in all individual countries, payment cards remained the most widely used non-cash payment instrument; the only exception is Germany, where direct debits predominate (accounting for 49% of transactions). Germany thus accounts for 41% of the total number of direct debits carried out in the EU, followed by the United Kingdom (17%) and France (16%).

The United Kingdom accounts for the highest share of non-cash payments in the EU, both in terms of volume (22% of the European total) and value (37%). It accounts for a particularly large share of



The migration to SEPA has made it possible to carry out cross-border credit transfers and direct debits, by harmonising rules for sending and receiving payments.

Credit transfers are the payment instrument that generates the vast majority of cross-border flows, accounting for 99% of the total value of cross-border payments.

The main recipients of credit transfers sent from clients of French institutions are Germany (38%

or EUR 1,480 billion), the United Kingdom (32% or EUR 1,230 billion) and the Netherlands (7% or EUR 270 billion). On the receiving side, European data are biased by the lack of data provided by the United Kingdom, which limits the scope of the analysis. It should nevertheless be noted that, excluding the United Kingdom, Germany is the largest sender of credit transfers to France (EUR 1,151 billion in 2017), followed by the Netherlands (EUR 542 billion) and Belgium (EUR 296 billion).

Chart 12 Total value of credit transfers between France and other EU countries (EUR billions)

Credit transfers sent from France Credit transfers received in France

1,480

1,151

na

1,230

270

542

228296

215158

170 132

104

222

33 16

27na

2788

21na

1719

16 37

15 32

12 12

9 8

7 7

3 4

2 2

2 5

2 1

2 1

2 1

1 1

1 1

1 1

1 1

Source: European Central Bank.



Chart 13 Total value of direct debits between France and other EU countries (EUR millions)

Direct debits sent from France Direct debits received in France

0

0 0

0 0

0 0

0 0

0 0

0 0

1 12

18,227

2,535

3,090

381 na

26,553

2,95

921116

902427

53642

43318

163232

2179

036

31 1

26 na14 na

na

11 0

4 2

0 1

0 0

0na

2,847

Source: European Central Bank.

As direct debits are used almost exclusively at the domestic level, flows to the EU only account for a marginal share of direct debits issued by French institutions (EUR 11.3 billion or 1% of direct debits issued in France). On the other hand, it has seen a sharp rise of 31% in 2017. With 25% of flows to the EU in value, or EUR 2.8 billion, Germany has become the country to which creditors of banks established in France send the most direct debit transactions, followed by the Netherlands (22% or EUR 2.5 billion) and Belgium (19% or EUR 2.2 billion).

On the receiving side, direct debit transactions sent by foreign creditors to accounts held by French institutions were more significant, totaling EUR 48.6 billion in 2017; cross-border direct debits from the EU represented 3% of direct debits received in French accounts. Belgium was by far the largest sender of direct debits, with a total of EUR 26.5 billion sent to French accounts in 2017, followed by Germany (EUR 18.2 billion) and the Netherlands (EUR 3 billion).



Contactless payments

1.2 billion national payments made for a value of EUR 12.9 billion in 2017.

EUR 10.2: average amount of a transaction.

Contactless payments are booming in France. They increased twofold between 2016 and 2017. They now account for more than 13% of the number of face‑to‑face card payments (made on a merchant’s terminal).

Share of contactless payments in face-to-face card payments(%)

Share in volume Share in value

1.0

3.4

7.0

13.1

0.20.9

1.8

3.9

0

2

4

6

8

10

12

14

2014 2015 2016 2017

Source: Banque de France, survey on the use of non-cash payment instruments.

Documents

OF NON-CASH PAYMENT INSTRUMENTS 2018 ......2019/05/03 · Chart 2 Volume of transactions by payment instrument in France (billion transactions) 18 17 9 < 1 < 1 56 Cheques LCR/BORa)