The Ireland cards and payments market is steadily growing. Presently, it is heavily dominated by credit and debit cards and uses cash with decent frequency, i.e., about 20 percent of all the sales are settled in cash. As per the research, total card payments in the country stood at 8.54 billion Euros in May 2024 which is 380 million euros more than 8.16 billion euros in April 2024. The value of card Payments in Ireland surged by 4.7 percent. Moreover, the market growth in value is propelled largely by domestic and, to some extent, by non-domestic card payments, rising by 320 million euros, i.e., 4.8 percent and 60 million euros, 4.1 percent, respectively. Similarly, the card payment amount grew from 213.8 million to 225.4 million by 5.4 percent.
However, the market is expected to face resistance from the Irish Government’s efforts towards mandating cash acceptance at selected retailers. In January 2024, Finance Minister of Ireland Michael McGrath received approval from the government for the General Scheme of the Access to Cash Bill.
Moreover, the change in customer preference for digital payment methods also propels the market forward. In addition, increasing mobile phone penetration and access to high-speed internet connectivity compelled consumers to transition to cards and other payment modes. This led to a reduction in cash usage. Further, the measures by the government authorities and financial establishments accelerated the adoption of electronic payments and augmented the application of payment cards among retailers, distributors, and others. This continues to push the industry forward previously between 2018 and 2023.
Further, strong legal support is the main factor separating Ireland from other regional countries and expanding the cards and payments market on a year-on-year basis. Like, it became the first nation in Europe in 2000 to enact the Electronic Signatures Directive through the Electronic Commerce Act 2000 (ECA) and it also implemented the Electronic Commerce Directive. Hence, this facilitative stance and approach towards internet-related issues will keep the market on a growth trajectory in the coming years as well.
Additionally, the sharp increase in digital-only banks, substitute payment options, and contactless technology, coupled with the expansion of the e-commerce industry, is fuelling the Ireland cards and payments market growth.
Despite all the growth, the cash is still greatly in application, especially in cities which is a key factor impeding the growth of the Ireland cards and payments market. For instance, between September and October 2023, around 1 billion euros in cash was withdrawn. Though this is 8.2 percent less than that of May 2023, the frequency of withdrawals has surged actually, i.e., 7.67 million instances, and most transactions were done at an ATM in that period. A monthly rise of 3.3 percent was registered, and slightly less than 140 euro on average was withdrawn per transaction. Also, the country’s government have taken to increase the use of cash, therefore, it is a major issue for the market players.
The mounting credit card bills and the change in the implementation date for the stamp duty on the same from 1st April to 31st December are other key factors hindering the expansion of the market. This will significantly burden the people with all bills and payments at once.
The surging presence of such financial players is pushing forward the competition in the banking industry by supporting the increase in debit card holding. Likewise, Revolut, a UK-based neobank, provides standard, plus, premium, metal, and ultra-account involving debit cards in the country.
Technologies like DLT and tokenisation are believed to become more standard characteristics of the Irish financial system and payment infrastructures and services. This is partially because of policy changes. The market will benefit from the recently launched initiatives by the EU to strengthen industries and customers to leverage the advantages of payment innovations.
The Ireland cards and payments market growth rate is derailed by rising inflation, the impact of geopolitical issues in the region, and the economic slowdown. Moreover, increasing frauds and scams are another problem hampering the trajectory of market growth. As per a study by the Banking & Payments Federation Ireland (BPFI), nearly 100 million euros, specifically 98.6 million, were stolen by fraudsters via scams and frauds in 2023 which is a surge of more than 16 per cent in comparison to 2022. Also, 95 per cent of the number of fraudulent payment transactions were card fraud and unauthorised electronic transfers via online and mobile banking have severely impacted the market growth.
The debit cards segment is by far the most dominant method in Ireland cards and payments market. This is because of the consumer’s inclination towards debit cards when in a physical location especially popular among those aged under 45. Also, the major reason for people to go to the branch i.e. 63 per cent is to withdraw/lodge cash. Further, debit cards are more prevalent in areas of Leinster (54 per cent), Munster (50 per cent), Conn/Ulster (60 per cent) and Dublin (42 per cent). However, with modest growth in smartphone payments, debit cards saw a slight decline in 2023.
The credit cards segment in the second has also grown considerably in the last few years as every 1 person in 3 possesses one. Moreover, the segment market growth can be attributed to the preference of current account holders who are believed to stick with their primary financial provider for credit cards, overdrafts, and saving accounts. Another factor supporting the market is low switching behaviour from one service to the other.
The POS segment registered the highest growth rate and is expected to further propel during the forecast period for the Ireland cards and payments market. This dominance can be attributed to the sharp increase in contactless payments which account for about 85 per cent of card-based point-of-sale payments. In terms of per capita contactless payment, Dublin gained the top spot with 394 in the twelve months ended on March 2024. This is more than the national average, i.e. 40 per cent more. Apart from this, the ability to generate higher return on investment along with its accessibility is influencing the segment’s market size. Further, its extensive application in varied industries involving transportation, accommodation, hospitality, and retail has substantially boosted the market growth in recent years.
On the other hand, the ATM segment is witnessed moderate and is expected to play an important role in the Ireland cards and payments. For instance, In February 2024, the Bank of Ireland reported an investment of 60 million euros to enhance the nation’s ATM network. This will significantly elevate the segment’s market growth rate as it is the biggest investment in the country’s cash infrastructure in the last 10 years. Besides this, these still command the industry in respect of cash withdrawals and have surged in popularity in 2023. Also, they are utilised by around 78 per cent of adults which is up five percentage points and cashback from merchants has dropped down slightly.
The payment cards segment holds the maximum portion of the Ireland cards and payments market and is anticipated to continue its position during the forecast period. The segment’s market growth can be credited to the extensive usage through different card transactions in the second quarter of 2023, totalling 10.4 billion euros in value and 3.6 billion in volume including In-person payments in the first, domestic contactless payments in the second, domestic mobile wallet payments in third, online payments in fourth and cash withdrawals in the last. Therefore, the segment is believed to grow further in the coming years as it accounted for around 63 per cent of overall payment volume in 2023.
The credit transfers segment has positioned itself at the second spot then the direct debt segment.
The Ireland cards and payments market growth witnessed a major rise in payment transactions since the second quarter of 2023. This is primarily propelled by the entry of a new payment service company in the Irish industry and heightened payment transactions in 2023 of 4.14 billion, which is a 36 percent surge from 2022’s 3.05 billion. However, the market in the country is greatly lagging in the accessibility of instant payments and is at 22 position in the European Union’s ranking among its own countries. This is an extremely negative trend from the aspect of customers and companies in the country.
Frequently Asked Questions
Debit cards are the most popular payment method in Ireland, followed by credit cards and digital wallets such as Apple Pay and Google Pay. Contactless payments have also seen a substantial increase in usage.
Technological advancements such as near-field communication (NFC) for contactless payments, blockchain for secure transactions, and artificial intelligence (AI) for fraud detection and prevention are shaping the future of the cards and payments market in Ireland.
Key challenges include cybersecurity threats, regulatory compliance, and the need to balance innovation with security. Additionally, there is ongoing competition from global payment providers and fintech companies.
The future outlook for the cards and payments market in Ireland is positive, with continued growth expected in digital and contactless payments. Advances in technology, regulatory support, and changing consumer preferences will drive further innovation and expansion in this sector.
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