Sharp drop in numbers of establishments charging for PIN card payments of small amounts

Amsterdam, January 8, 2009. The number of electronic payment transactions again grew considerably in 2008 – faster, in fact, than in any year since 2002 – according to the latest figures released by Currence, owner of the PIN (debit card) and Chipknip (electronic purse) products. The number of PIN payments grew to 1,756 billion, an increase of 10.6% compared with 2007. Use of Chipknip, with in excess of 176 million payments, was up slightly (0.7%) on the previous year. Currence expects electronic payments to continue growing in the future because banks and other participants in economic activity, including retail umbrella organisations and sector associations as well as the Dutch Consumer Association all acknowledge that using cash is inefficient. Currence expects sharp growth in the number of PIN transactions in the years ahead, mainly involving payments of less than €20. These additional PIN transactions will replace cash payments. In the current year, Currence will also be continuing its partnership with the banks and umbrella organisations/sector associations to pursue its successful campaign with the Klein bedrag? PINnen mag! slogan, encouraging PIN card use even for small amounts.

Anger at signs
Point-of-sale signs advising that charges will be made for using PIN cards for small amounts are becoming less and less common, especially now that independent studies have shown that electronic payments cost merchants less than cash in almost all cases. Whereas consumers previously accepted the need for charges, they now see merchants with such signs as merely inconveniencing their customers. From a security angle, too, both merchants and consumers benefit considerably from the reduced use of cash because it is cash that is mainly targeted by criminals (often in violent attacks). This aspect is widely recognised in the Netherlands and the supermarkets particularly have taken action to minimise cash. They support the Klein bedrag? PINnen mag! campaign across the sector. The town of Almere, too, is pioneering cashless shopping in an effort to combat robberies.

Top 3 and strongest growth
Of the various sectors, there are three clear front runners, together accounting for around 57% of the total volume of PIN transactions. With 631 million PIN transactions (+13%), the supermarkets account for 36% of the total. Following some way behind come non-food retailers, with 188 million PIN transactions (11%), and service stations, with 175 million (10%). Out of all the sectors, the biggest increase in the volume of PIN transactions was recorded by car parking. The growth in this sector comes as more and more motorists are able to use their PIN cards not only in car parks but also for street parking. The average amount of a PIN card transaction in 2008 dropped again to €42.52. In 2002, the average PIN payment was €47.

Successful repositioning of Chipknip
Since mid-2007, Currence has succeeded in repositioning Chipknip as the payment product of choice for parking, vending and catering – rather than in shops, where PIN is more efficient and less costly for transactions of any amount. Consequently, the majority of Chipknip payments are now made in the catering, vending and parking segments, which together account for 80% of the total Chipknip payment volume. 95 million Chipknip payments were made in catering and vending, including staff restaurants and vending machines on business premises and in government offices, health care institutions and educational establishments. In the parking segments, the total number of Chipknip transactions in 2008 was 46 million. The average transaction amount in 2008 was €2.74.

Key figures PIN

Key figures Chipknip