OREANDA-NEWS. May 03, 2012. The Estonian payment environment is moving steadily towards more efficient and convenient means of payment. In the first quarter of this year, 99.3% of all the domestic payments initiated via banks were electronic. The share of non-cash payments has been over 90% since 2001. Such payments are so widespread owing to good Internet access and the development of banks' electronic payment means, reported the press-centre of Eesti Pank.  

62% of all the first-quarter domestic payments (here and hereinafter, card payments are not included) were originated by private individuals. The most popular means of payment were Internet bank payment orders (63%), followed by direct debit (25%) and standing orders (9%). Internet bank transfers have increased by about 50% over the past five years, direct debit by a third and mobile phone payments by 18%. Smartphones increase the popularity of Internet bank mobile applications boosting the use of Internet payment orders even more. The amount of transfers (cash payments and payment orders on paper) made by people at bank offices has decreased by 22% and 47%, respectively, compared to the first quarter of 2007.

Making payments has become more secure, owing to the growing usage of ID cards and mobile ID. In the case of the less secure password cards, banks have lowered the payment limit to 200 euro.

According to the TNS Emor’s survey on the financial behaviour of Estonia’s households, electronic means of payment are used due to habit and ease of use and they are considered secure. The share of Internet payments has increased in nearly all socio-demographic groups. Cash payments are mostly made by pensioners and lower-income families. Payment orders at bank offices are also the most popular among the latter group.

According to TNS Emor, Estonia’s households tend to stick to their payment habits, so no changes in the general structure of non-cash payments can be expected. However, based on statistics collected by Eesti Pank, it can be said that the share of Internet payments is likely to increase even more in the future. This is favoured, among other things, by the growing popularity of smartphones and the development of mobile applications for Internet banking. Considering the European Union’s goal to double the volume of e-commerce by 2015 and to facilitate the making of cross-border e-payments, the share of Internet payments is expected to increase both in Estonia and abroad.

The TNS Emor survey of September 2011 included 981 households, with people aged 18-74 questioned.The statistical error limit was 3.1 pp.The survey was commissioned by Eesti Pank.
TNS Emor has been conducting the F-monitoring survey since 1998.The aim of the survey is to map changes in the Estonian residents’ use of money and financial-behaviour possibilities and desires.

Estonia’s monthly statistics on payment and settlement systems is published on the web page of Eesti Pank. Eesti Pank publishes its comment on the statistics once a quarter (in the month following the end of a quarter).