Cost, Usage and Efficiency of Retail Payments Study

In October 2024, the Department of Finance published the National Payment Strategy (the Strategy). Under the Strategy, the Central Bank of Ireland (the Central Bank) has been tasked with conducting research on the comparative usage, efficiency, and costs of retail payment methods (Future Outcome 8.1.2).

At present, there is very little information available on how much it costs to offer different payment methods to customers in Ireland, how the usage by consumers breaks down (e.g. split between cash, card, credit transfers etc.), and what efficiencies/advantages are associated with each payment method. To address this data gap and the Strategy’s recommendation, the Central Bank is conducting a study on the Costs, Usage and Efficiency of Retail Payments in Ireland (the Study). 

Data collected as part of the Study will inform our policy decisions, and will form the basis of a published report.

The Study has been divided into two strands:

 

Preparation

  • The Central Bank participates in a European Central Bank seminar group which was established to share information on studies examining the cost of providing retail payments in Europe
  • Bilateral meetings were held with a number of other National Central Banks who have previously published similar studies
  • A Market Advisory Group comprising eight firms was assembled to review a draft of the questionnaire.

Population

  • Payment service providers and merchant acquirers relevant to the Irish market (licenced both in Ireland and in other European jurisdictions).

Survey

  • Firms were surveyed via a quantitative questionnaire on costs, usage and efficiencies of providing payment services in the Irish market
  • The questionnaire was online only, with responses due to be submitted to the Central Bank by 31 October 2025.

Preparation

  • Bilateral meetings were held with numerous trade associations to solicit feedback on the study
  • Presentations were made to groups such as the Department of Enterprise, Tourism and Employment’s Retail Forum, the Irish Retail Payments Forum, and the National Transport Authority’s Special Purpose Small Vehicle Advisory Committee.

Population

  • Retailers, hospitality, and firms providing consumer services were surveyed via a questionnaire and in-person sessions, with the assistance of Red C.

Survey

  • This section involved an online questionnaire that was more qualitative, seeking data on costs and usage of retail payments provided to their customers where available, but also on perceived efficiencies (or relative advantages) of each payment method that a firm offers, drawbacks to each payment method, and what might serve as an inducement to offer a new payment method
  • In-person focus groups and interviews were held to ensure that views from firms with less access to their data could be captured, in order to allow a representative sample to be constructed
  • The questionnaire was distributed by Red C on behalf of the Central Bank, between December 2025 and February 2026. Red C also also conducted the in-person focus groups and interviews.
  • The Central Bank and Red C reached out to firms directly and via representative associations to seek participants for Strand Two

Data received by the Central Bank under both strands will be anonymised and analysed only by the Central Bank, through our Data Office. It is envisioned that information from both Strands will feed into the final report, to be published in 2026. Data published will be in aggregate only, with nothing attributable to any firm or individual.

Any questions can be sent to us directly at [email protected] or via your representative association.