The Plenary session of October 6th has decided to abandon the current work item, as requested by both ESTA and Euricpa.

Miscellaneous

Compared cost of payments (FCD)

The French “Fédération du Commerce et de la Distribution” (FCD) has established stats on the average cost of handling various method of payments, showing cash payment being the less expensive method.

Source: FCD

 

Cashless payments growth rate slow

Last month the European Central Bank (ECB) published the 2009 statistics on payments, which gives comprehensive data on cashless payment transaction volumes and values in the 27 Member States of the EU.

The ECB statistics on payments show that:

• The number of cashless payments in the EU grew by 3.3 billion in 2009 to almost 83 billion transactions. This represented a 4,2% increase, similar growth as previous year but much slower than the Compound Annual Growth Rate of 6,1% between 2000 and 2008.
• The corresponding total value of cashless payments in the EU decreased by almost 16% to €227 trillion, resulting in a further decline – of almost 20% – in the average value per transaction, to €2,771.
• 93% of cashless payments were performed in the 15 Western European countries. On average, each person in the EU 27 performed 166 cashless payments in 2009, ranging from nine cashless payments per person in Bulgaria (new EU member in 2007) to 332 in Finland.

The growth rate of the cashless payments volume in the EU is slower than anticipated. However many European countries were hit by the financial crisis and this is surely to be considered a reason for the recent slowdown. As economic conditions improve we are likely to see a return to the higher growth rates in 2010.

Source: RBR Bulletin October 2010

“Dirty money” myth dispelled

An International team, led by Ballarat University has found that banknotes are not as contaminated with dangerous levels of bacteria as suspected.

Having analysed a number of 1280 banknotes collected from food outlets from at least ten nations, lead researcher Dr Frank Vriesekoop concludes that there were no alarming levels of pathogenic bacteria found on money anywhere in the world.

However, Dr Vriesekoop has found that richer and more developed countries had fewer bacteria on their money than poorer countries and that the age and material of the note affect the extent of contamination of that money. Notes made from polymer material carried significantly less bacteria compared to the notes based on cotton.

Still, researchers recommended that in food outlets the handling of food and the collection and exchange of money be physically separated, preferably undertaken by different people.

Source: rediff Business August 13, 2010

Financial inclusion – the role of payments (EFFI)

Europe must maintain the right for citizens to use the means of payment of their choice, including cash, European Politicians and NGOs say.

More and more, Europeans complain that they are finding it difficult to access to cash or to be able to use it to pay for every day goods and services.

During a roundtable debate organised by the European Foundation for Financial Inclusion (EFFI), politicians and NGOs expressed fear that current efforts in several European countries to favour the use of credit or debit cards and electronic payments will leave many people by the wayside, and thus financially “excluded.”
“If we start by saying that 2 out of 10 European citizens do not have access to a bank account, then are starting to have an idea of the capacity to harm and affect social inclusion,” said MEP Peter Skinner, who hosted a roundtable discussion on October 6th entitled “Maintaining freedom in choice of payments: a contribution to the battle against social exclusion.”

The Foundation considers that the free choice of payments is a basic right for EU citizens and consumers, in particular for the more vulnerable members of society – the young, the aged, migrants and the unemployed, among others. “This is an issue about civil liberties, about who is included and who is excluded,” said MEP Jean Lambert.

NGOs such as the European Anti-Poverty Network and the European Consumers’ Organisation BEUC likewise voiced their concern. A means of payment is no ordinary good or service, said BEUC’s Anne Fily, “it should be available to anyone as a kind of public service.”

For more information, please visit www.euffi.org

Source: The Parliament Magazine