Amsterdam, 7 January 2008. There was another sharp rise in the number of electronic payment transactions in 2007. The rate of growth was in fact the highest since 2002, according to the figures for the year released by Currence, owner of the PIN and Chipknip payment products. The number of PIN payments grew to 1,588 billion, an increase of 9.5% compared with 2006. And at 175 million payments, the Chipknip transaction volume was up by 6.4%. Currence expects continued growth in the volume of electronic payments because all the parties involved, including trade associations, umbrella organisations and the Dutch Consumer Association, now accept that handling cash is costly. In the years ahead, Currence expects to see the number of PIN transactions grow by around one billion, mainly accounted for by payments of less than €20. These additional PIN transactions will replace cash payments. Currence will be continuing to encourage PIN card use for small amounts in 2008 with its ‘Klein Bedrag? PINnen Mag!’ advertising campaign.
Currence expects signs in shops advising that charges will be made for using PIN cards for small amounts gradually to become a thing of the past, especially now that studies have shown that debit card payments are generally no more costly than cash for retailers. From the security angle, too, both retailer and consumer will benefit greatly from reducing the amount of cash in circulation in that it is mainly cash that is targeted by criminals (often in violent attacks).
Among the various sectors, there is a clear top three, together accounting for 52.5% of the total volume of PIN transactions. Way out in front were the supermarkets, with 557.8 million PIN transactions in 2007, or 35.1% of the total, followed by service stations, with 150.2 million PIN transactions (9.5%), and fashion retailers, with 126.3 million (8%).
The sector showing the largest increase in the number of PIN transactions (92.3%) was parking. In all, 1.8 million car park charges were paid using PIN. This growth was due to an increase in the number of car park machines accepting PIN (up 89.8%). Mobile trading (market trading, door-to-door selling and mail order) trail some way behind parking, with 53% growth in the number of PIN transactions. The growth in this sector is attributable to greater use (33.9%) of existing POS terminals.
The average payment amount on PIN cards continued to fall in 2007, to €43.75. In 2002, the average amount of a PIN transaction was €47. Currence aims to encourage greater use of PIN for small amounts. The sharp growth recorded by PIN last year has enabled Currence to reduce the fees charged to banks for use of the PIN product by 10% with effect from 1 January 2008. These fees, incidentally, account for only a small proportion of the overall cost to the banks.
The majority of Chipknip payments involve catering, vending and parking. These three segments together account for 75% of the total number of Chipknip payments. Some 87 million Chipknip payments were made in catering and vending, including canteen facilities and vending machines on business premises, in government buildings, in healthcare institutions and in educational establishments. The total number of Chipknip transactions in the parking segment in 2007 was 45 million. Currence expects Chipknip to continue growing in cashless environments, especially for parking and use in company restaurants.
The number of Chipknip loading transactions in 2007 increased by 8.8% compared with 2006, to 25 million. There are on average seven Chipknip payment transactions for each Chipknip loading transaction, with the average Chipknip payment in 2007 working out at €2.73.
Key figures PIN
Key figures Chipknip