eurosystem balance of payments working group luxembourg, 2-3 april 2012 the use of payment cards...

EUROSYSTEM

Balance of Payments Working Group

Luxembourg, 2-3 April 2012

The use of payment cards data for Travel statistics

Carla Marques

Carla Ferreira

2Balance of Payments Working Group


Outline

1. Travel in the Current and capital

accounts

2. Current Portuguese methodology

3. Payment cards as data source:Present and future

4. Final remarks



1. Travel in the Current and capital accounts

2.7%

-8.9%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

% o

f GD

P

Travel Current and capital accounts



Balance of payments

Current accountGoodsServices

...Travel...

IncomeCurrent transfers

Capital accountFinancial accountNet errors and omissions

travel covers primarily the goods and services acquired from an economy by travellers during visits of less than one year in that economy

(BPM5, IMF)

it is a demand-oriented activity

1. Travel in the Current and capital accounts



Balance of payments

Current accountGoodsServices

... Travel...

Primary incomeSecondary income

Capital accountFinancial accountErrors and omissions

1. Travel in in the Current and capital accounts

Travel cover goods and services for own use or to give away acquired from an economy by nonresidents during visits to that economy

(BPM6, IMF)



1. Travel in in the Current and capital accounts

Travel (BPM5)

•Business•Personal

•Health-related

•Education-related

•Other

Travel (BPM6)

• Business• Acquisition of goods and services

by border, seasonal, and other short-term workers

• Other• Personal

• Health-related• Education-related• Other

•For both business and personal travel• Goods• Local transport

services• Accommodation

services• Food-serving services• Other services•Of which:

Health services•

Education services

Supplementary items are shown in italics.



Outline


accounts



4. Final remarks



Different possible approaches:


Models

Surveys

Settle- ments data



Data sources for Travel


•Purch

ase/

sales

of

foreig

n

curre

ncy at

count

er;

•Paym

ents

with

travel

ler's

chequ

es;

•Intern

ationa

l

transf

ers

classif

ied as

Travel

Settlementssystem

•C

a

s

h

w

i

t

h

d

r

a

w

a

l

s•P

urchases with payment cards

Credit and debit cards

•O

v

e

r

n

i

g

h

t

s

t

a

y

s

i

n

P

T

h

o

t

e

l

s

(

f

o

r

e

x

p

o

r

t

s

)

;

•T

o

t

a

l

i

n

c

o

m

e

f

r

o

m

h

o

t

e

l

a

c

t

i

v

i

t

y

(

f

o

r

e

x

p

o

r

t

s

)

.

Statistics Portugal

(NSI)



Compilation process


Settlementssystem

Credit and debit

cards

Statistics Portugal

(NSI)

Transaction basis

Geographical breakdown - imports

Geographical breakdown - exports

Mix basis

Travel - final values

Settlements basis

Aproximation for transaction basis



Compilation process


On a monthly basis

The year-on-year growth rates are estimated according to the variation of the different data sources



Outline


accounts



4. Final remarks



3. Payment cards as data source

Source: ECB – Payments and Settlement Systems Statistics

Structure of cashless payments within the European Union

29.8 28.2

25.2 25.8

26.1

40.1

19.0

5.9

0.0

20.0

40.0

60.0

80.0

100.0

2000 2010

Credit transfers Direct debits Card payments Cheques




Source: ECB – Payments and Settlement Systems Statistics

Payment cards as a percentage of total cashless payments

0.00

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

EU EA ESP FRA GBR IRL ITA NLD DEU PRT

2000 2010



Portuguese institutional environment


PT market

Only one large company involved in processing payment cards data –

SIBS – Forward Payment SolutionsIn 2010, more than

18 million of MB cards16 thousand ATM terminals260 thousand POS terminals

In Banco de PortugalArticulation

between Payments

Systems Dept. and Statistics

Dept.

- Single input flow- Different

exploitation of the data



Variables in payment cards data: availability(current situation)


Type of terminal

Brand

Issuer bank

Type of operation

CountryMode of transactionNumber and amount

M

M

M

M

M

A

M

ATM, POS, …

Mastercard, Visa, …

Only for PT banks

Withdraw, payment; nat., int

Where is issued or usedFace-to-face or at distance

Of the transaction



Variables in payment cards data: statistical link(current situation)


Type of terminal

Brand

Issuer bank

Type of operation

Country

Mode of transactionNumber and amount

M

M

M

M

M

A

M

--

--

Cross check with settlementsFilter international transactions

Geographical breakdown

Excl. internet purchases of goods

Amount of transaction



Future situation: new variables available


Activity sector

Location

BIN code

M

M

M

POS merchant NACE or code Supermarket, airport, …

Business card, …



Future situation: Statistical link with new variables…


Activity sector

Location

BIN code

M

M

M

Estimate for kind of expensesFine-tune estimation (e.g. national withdraws at PT airport)Estimate business vs personal

…and new uses for ‘old’ variables

Number and amount

M Estimate for purchases that should go under goods

Type of terminal M Identify POS op. (aux. info)



Strengths and weaknesses


Excelent

coverage

Excelent

timeliness

High frequency

Good detail

Low cost

Inaccuracy

Different

concepts

Potentially

multiple

processors

challenges



Outline


accounts



4. Final remarks



Exercise at European level

4. Final remarks

Quarter Issuer_ISO Acquirer_ISO Channel Territory_of_Activity Sector Nr_of_Transactions Value_in_EUR2008Q1 AT PT ATM cross-border Cash 11825 1491759,092008Q1 AT PT POS cross-border Airlines 108 28146,471912008Q1 AT PT POS cross-border Car Rental 715 110107,53572008Q1 AT PT POS cross-border Lodging 3481 888961,437

2007 TF RoW recomendation

2008 ECB pilot exercise for quarterly data from main Card Payment Schemes

2010 Pilot data made available for countries to access



4. Final remarks

Type of terminal

Brand

Issuer bank

Type of operation

Country

Mode of transaction

Number and amount

Channel

- -

- -

≈ Territory of activity

Issuer / acquirer

- -

Number and amount

Activity sector

Location

BIN code

Sector

- -

- -

PT ECB Pilot datamonthly quarterly



Merits of the data source

Some details to be additionally explored for BPM6 requirements

4. Final remarks



Thank you for your [email protected]

[email protected]

eurosystem balance of payments working group luxembourg, 2-3 april 2012 the use of payment cards...

Documents

omissions travel

travel expenses

different data sources

use of payment cards

services exports

services account

futurefinal remarks

economy bpm5