Template-Type: ReDIF-Article 1.0

Author-Name: Vivien Deak
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: deakv@mnb.hu

Author-Name: Laszlo Kajdi
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: kajdil@mnb.hu

Author-Name: Istvan Nemecsko
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: nemecskoi@mnb.hu

Author-Name: Tamas Vegso
Author-Workplace-Name: Magyar Nemzeti Bank
Author-Email: vegsot@mnb.hu


Title: Time is Money: A Survey of the Social Cost of Payment Instruments

Abstract: The number of payment transactions in Hungary has increased by almost one and
a half times over ten years. The use of electronic payment instruments has grown
dynamically, while only a moderate increase in cash use was observed. The analysis
shows the evolution of the payments market and quantifies the social costs attached
to the use of payment instruments. The value of the latter was HUF 832 billion in
2019, representing real growth of 20 per cent over 10 years, mainly due to the
costs of developing the acquiring infrastructure and the significant increase in the
number of transactions. The real cost per transaction has fallen by 10 per cent
for cash, by one half for cards and by one sixth for credit transfers, reflecting the
improved efficiency. As electronic payment is now available in most retail payment
situations, the cost per transaction is expected to decrease further in the coming
years as volume increases.

Classification-JEL: E42, D12, D23, D24
Keywords: payments, payment instrument, social cost, unit cost
Pages: 5-36
Volume: 21
Issue: 2
Year: 2022
File-URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-21-2-st1-deak-kajdi-nemecsko-vegso.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:21:y:2022:i:2:p:5-36