2021
0
Ireland Payment Methods Market Report 2021
2021-11-03T03:11:00+00:00
OX1043571
1495
144106
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Report
en_GB
"The COVID-19 pandemic was the catalyst for a truly transformative period for the way consumers settle bills and pay for goods and services. Alongside a veritable collapse in the use…

Ireland Payment Methods Market Report 2021

£ 1,495 (Excl.Tax)

Report Summary

“The COVID-19 pandemic was the catalyst for a truly transformative period for the way consumers settle bills and pay for goods and services. Alongside a veritable collapse in the use of cash, there was a commensurate increase in the use of contactless payments.”

– Brian O’Connor, Senior Consumer Analyst

This report will look at the following areas:

  • The impact of COVID-19 on consumer behaviour and market dynamics with regard to payment methods.
  • Payment methods used by Irish consumers both in-store and online.
  • Consumer use of Buy Now, Pay Later (BNPL) to make purchases.
  • The impact of the COVID-19 pandemic on consumers’ cash usage.
  • Consumers’ behaviours around payments and attitudes towards payments and payment methods.

 

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Issues covered in this Report
        • Executive Summary

            • The impact of COVID-19 on payment methods
              • Market Drivers
                • Post-COVID-19 economic prospects look positive for NI and RoI
                  • Many newly acquired payment habits likely to remain beyond pandemic
                    • Electronic payments continuing to grow in RoI
                      • Card payments – and contactless, in particular – dominant in NI
                        • Innovations
                          • The Consumer
                            • Debit cards most common payment method for in-store spending
                              • Figure 1: Payment methods used in-store in the last month (to pay for any goods, services or bills), NI and RoI, 2021
                            • Debit cards, PayPal and credit cards most popular online methods
                              • Figure 2: Payment methods used online in the last month (to pay for any goods, services or bills), NI and RoI, 2021
                            • BNPL becoming popular among NI consumers, in particular
                              • Figure 3: Methods used to make no-fee buy now, pay later purchase in the last month, NI and RoI, 2021
                            • More than half using cash less since onset of pandemic
                              • Figure 4: How consumers’ use of cash as a payment method changed as a result of the COVID-19 outbreak, NI and RoI, 2021
                            • Consumers want transparent, clear and efficient payment processes
                              • Figure 5: Agreement with statements relating to behaviours around payment methods, NI and RoI, 2021
                            • Consumers not yet ready to dispense with cash
                              • Figure 6: Agreement with selected statements relating to payments and payment methods, NI and RoI, 2021
                            • What we think
                            • The Market – Key Takeaways

                              • Post-COVID-19 economic prospects look positive for NI and RoI
                                • Many newly acquired payment habits likely to remain beyond pandemic
                                  • Electronic payments continuing to grow in RoI
                                    • Card payments – and contactless, in particular – dominant in NI
                                    • Market Drivers

                                      • Short, medium and long-term impact on the industry
                                        • Figure 7: Short-, medium- and long-term impact of COVID-19 on payment methods, October 2021
                                      • Both Irish economies set for strong post-COVID-19 rebound
                                        • Figure 8: Economic growth actual and forecasts, NI and RoI, 2020-23
                                      • More than a quarter have suffered financially during pandemic
                                        • Figure 9: How consumers’ financial situation changed since the start of the COVID-19 outbreak in their country, IoI, 2021
                                      • Pandemic having profound impact on how consumers shop and spend
                                        • Figure 10: How consumers’ spending behaviour has changed since the start of the COVID-19/coronavirus outbreak, NI and RoI, 2021
                                      • Smartphones becoming increasingly central in consumers’ lives
                                        • Figure 11: Ownership of smartphones, NI and RoI, 2021
                                      • Continued growth in electronic payments by RoI consumers in 2021
                                        • Figure 12: Quarterly payment volumes, cheques, RoI, Q1 2016-Q2 2021
                                        • Figure 13: Quarterly payment volumes, direct debit, RoI, Q1 2016-Q2 2021
                                        • Figure 14: Quarterly payment volumes, digital banking, RoI, Q1 2016-Q2 2021
                                        • Figure 15: Quarterly contactless payments, volume, RoI, Q1 2016-Q2 2021
                                        • Figure 16: Quarterly contactless payments, value, RoI, Q1 2016-Q2 2021
                                      • More debit cards, fewer credit cards in issue in the UK (incl. NI)
                                        • Figure 17: Number of debit cards in issue, UK (including NI), 2020-21
                                        • Figure 18: Number of credit cards in issue, UK (including NI), 2020-21
                                      • Value and volume of card payments in UK (incl. NI) increasing
                                        • Figure 19: Value of transactions, debit cards and credit cards, UK (including NI), 2020-21
                                        • Figure 20: Volume of transactions, debit cards and credit cards, UK (including NI), 2020-21
                                      • Most card payments in the UK (incl. NI) are now contactless
                                        • Figure 21: Volume of transactions, by card type, total, online and contactless, UK (including NI), 2021
                                    • Innovations – What You Need to Know

                                      • Debit card remains most popular method of payment
                                        • Buy Now, Pay Later methods offer more flexibility
                                          • Third-party services offer convenience factor
                                            • Biometric payment methods take payment methods further
                                              • More understanding needed for cryptocurrency
                                              • Who’s Innovating?

                                                  • Buy Now, Pay Later methods offer more flexibility
                                                    • Third-party services offer convenience factor
                                                      • Biometric payment methods take payment methods further
                                                        • Figure 22: Consumer attitudes towards payment methods, NI and RoI, 2020
                                                      • More understanding needed for cryptocurrency
                                                        • Figure 23: Consumer attitudes towards cryptocurrency, NI and RoI, 2021
                                                    • The Consumer – Key Takeaways

                                                      • Debit cards most common payment method for in-store spending
                                                        • Debit cards, PayPal and credit cards most popular online methods
                                                          • BNPL becoming popular among NI consumers, in particular
                                                            • More than half using cash less since onset of pandemic
                                                              • Consumers want transparent, clear and efficient payment processes
                                                                • Consumers not yet ready to dispense with cash
                                                                • In-store Payments

                                                                    • Debit cards the preferred method for in-person spending
                                                                      • Figure 24: Payment methods used in-store in the last month (to pay for any goods, services or bills), NI and RoI, 2021
                                                                    • Usage down but cash remains a popular method of payment
                                                                      • Older consumers, ABC1s most inclined to use credit cards
                                                                        • Younger consumers embracing payment services via smartphones
                                                                        • Online Payments

                                                                            • Debit cards lead the way as preferred method for online payments
                                                                              • Figure 25: Payment methods used online in the last month (to pay for any goods, services or bills), NI and RoI, 2021
                                                                            • Debit cards the standard go-to payment method for all demographics
                                                                              • PayPal trumps credit cards when it comes to online payments…
                                                                                • …while newer payment apps favoured by younger consumers
                                                                                  • Older consumers and ABC1s using credit cards for online payments
                                                                                    • Around a quarter of 18-44s using bank transfers for online payments
                                                                                    • No-fee, Buy Now, Pay Later Purchases

                                                                                        • 30% in NI and 16% in RoI have used Buy Now, Pay Later
                                                                                          • Figure 26: Methods used to make no-fee buy now, pay later purchase in the last month, NI and RoI, 2021
                                                                                        • Younger consumers making BNPL purchases
                                                                                          • Figure 27: Consumers who have not made a no-fee buy now, pay later purchase in the last three months, by age, NI and RoI, 2021
                                                                                        • Use of BNPL related to financial health and confidence
                                                                                          • Figure 28: Consumers who have not made a no-fee buy now, pay later purchase in the last three months, by assessment of how their financial situation will change over coming 12 months, NI and RoI, 2021
                                                                                      • Cash Usage during the COVID-19 Pandemic

                                                                                          • Most consumers using less cash since onset of COVID-19 pandemic
                                                                                            • Figure 29: How consumers’ use of cash as a payment method changed as a result of the COVID-19 outbreak, NI and RoI, 2021
                                                                                          • Reduced cash usage due to hygiene concerns and reduced acceptance
                                                                                            • Figure 30: Reasons consumers using less cash since the COVID-19 outbreak, NI and RoI, 2021
                                                                                          • A quarter of consumers expect to use cash more post-COVID-19
                                                                                            • Figure 31: Whether consumers expect to increase their use of cash as the COVID-19 restrictions are lifted, NI and RoI, 2021
                                                                                        • Behaviours around Payment Methods

                                                                                            • Low level of tolerance for poor or misleading payment processes
                                                                                              • Figure 32: Agreement with statements relating to behaviours around payment methods, NI and RoI, 2021
                                                                                            • Younger consumers less forgiving than older counterparts
                                                                                              • Figure 33: Agreement with statement “I avoid retailers that don’t accept my preferred payment method”, by gender, age and social class, NI and RoI, 2021
                                                                                            • Younger consumers most likely to withdraw cash from bank/post office
                                                                                              • Figure 34: Agreement with statement ” I have withdrawn cash over the counter from a bank branch/post office in the last 3 months (eg An Post)”, by gender, age and social class, NI and RoI, 2021
                                                                                            • Interest in cryptocurrencies also higher among younger consumers
                                                                                              • Figure 35: Agreement with statement “I would appreciate guidance on how cryptocurrency works”, by age, NI and RoI, 2021
                                                                                            • Younger consumers far more likely to have been victims of fraud
                                                                                              • Figure 36: Agreement with statement “I have been a victim of payment fraud in the last 12 months”, by gender, age and social class, NI and RoI, 2021
                                                                                          • Attitudes towards Payments and Payment Methods

                                                                                              • Belief in cash remains steady and steadfast, despite declining usage
                                                                                                • Figure 37: Agreement with selected statements relating to payments and payment methods, NI and RoI, 2021
                                                                                              • Women, older consumers most convinced of continued role of cash
                                                                                                • Figure 38: Agreement with statement “There will always be a need for cash”, by gender and age, NI and RoI, 2021
                                                                                              • Younger consumers see usefulness in setting own contactless limit
                                                                                                • Figure 39: Agreement with statement “Setting your own transaction limit on contactless payments would be useful”, by gender and age, NI and RoI, 2021
                                                                                              • Women, C2DEFs appreciate ability to pay bills via post office
                                                                                                • Figure 40: Agreement with statement “It is useful to be able to pay for bills via a local post office branch (eg telephone bill)”, by gender, age and social class, NI and RoI, 2021
                                                                                              • Significant minority put off by excessive security checks
                                                                                                • Figure 41: Agreement with statement “Too many security checks when shopping online is off-putting”, by age, NI and RoI, 2021
                                                                                              • Solid support among young consumers for cryptocurrencies
                                                                                                • Figure 42: Agreement with statement “Cryptocurrencies should be more widely accepted as a payment method”, by gender, age and social class, NI and RoI, 2021
                                                                                            • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                              • Data sources
                                                                                                • Generational cohort definitions
                                                                                                  • Abbreviations

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