The outlook compiled by the bank in accordance with the European Central Bank’s unified European methodology show the size of costs for traders, service providers and financial institutions to process transactions performed by residents in Latvia.
The study was performed in Latvia after the introduction of euro. Data from 2014 was compared with the previous study, which was published in 2012 and included data analysis from 2009. The most recent study shows that the number of non-cash transactions has increased and the costs of processing non-cash transactions have declined.
It is concluded in the study that general costs of processing payment measures in Latvia were EUR 206.3 million or 0.86% of GDP in 2014. To ensure the success of a single payment, the biggest costs were those of non-cash transactions. Cash transactions remained the cheapest out of all. It was mentioned in the study that the number of non-cash payments increases and the cost of processing a single payment declines. The number of cash transactions declines and the cost of processing such transactions increase.
900.7 million transactions for a total amount of EUR 10.3 billion were performed in retail trade and service industry in 2014. 69.8% of them used cash money. Size-wise, however, non-cash transactions were dominant (56.5%).
The Bank of Latvia reports that every resident had performed an average of 455 transactions in 2014.
Compared with 2009, general transaction processing costs have grown by EUR 33.4 million. The total number of transactions has increased by EUR 4.2 million. Card payment processing costs were EUR 17.0 million, loan transfer public costs grew by EUR 7.1 million (the number of such transactions grew by EUR 35.6 million) and the cash money transaction public costs were EUR 9.4 million larger (number of such transactions decreased by EUR 109 million).
To ensure the processing of a single transaction, the biggest costs were recorded for non-cash transactions (48.9 cents for loan transfer and 31.5 cents for card transactions). Public costs of processing a single cash transaction were 16.4 cents.
Compared with 2009, the cost of a single transaction declined for loan transfers (by 24.6%) and card transactions (20.2%), because the total number of such transactions had grown much more rapidly than their processing costs.
According to information from the Bank of Latvia, every resident had performed 455 transactions on average in 2014 (57 more payments than 2009). To ensure consumers are able to perform those payments, the total cost of processing payments of a single resident for traders, service providers and financial institutions were EUR 104.40.