In the last two decades consumers started using their PIN cards more and more to pay in shops. Some 55 percent of the purchase value was paid in this way by 2008. Banks and branch organisations stimulate paying by bank cards in order to reduce payment costs and increase safety in shops.
Share of PIN payments rising sharply
When bank cards with PIN arrived, in 1988, it became easier to withdraw cash. Therefore fewer cheques were used and the share of cash in the total turnover at merchants increased from 74 percent in 1988 to 78 percent in 1992.
From 1992 on consumers could pay more and more widely with the card. The share of bank cards rose to almost 55 percent in 2008 in the total turnover at merchants. This happened at the expense of cash and cheques. In 2008 the share of cash was down to 41 percent.
Share of various payment methods in the purchase value at merchants
Growing acceptation of PIN payments
Since 1999 the number of PIN terminals in shops has been increasing by 4 to 8 percent a year. In this period the number of payments with PIN increased even more, namely by 7 to 19 percent a year. The market for PIN payments is not yet saturated. However, two thirds of the consumers would rather pay cash if they are charged extra for paying with PIN.
Businesses can cut costs dramatically when consumers pay more often with PIN. Currence, the product owner of PIN, therefore cooperates with the foundation Bevorderen Efficiënt Betalen and campaigns such as ‘Klein bedrag? PINnen mag!’. The campaigns encourage consumers to use PIN to pay small amounts, without extra charges. This has resulted in a 13 percent increase in the number of PIN payments in supermarkets since the campaign started.
Since 2005 the number of payments using PIN has increased faster. This increase was not just due to the greater acceptation in the shops, but also to the more frequent use of PIN cards by consumers. Thanks in part to the campaigns growth is mainly realised in the small amounts.
PIN payments and point of sale terminals
Nicole Jonker (DNB) and Alex Lammertsma (CBS)