EUROSYSTEM Balance of Payments Working Group Luxembourg, 2-3 April 2012 The use of payment cards data for Travel statistics Carla Marques Carla Ferreira

2 Balance of Payments Working Group Luxembourg, 2-3 April 2012 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

3 Balance of Payments Working Group Luxembourg, 2-3 April Travel in the Current and capital accounts

4 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Balance of payments  Current account  Goods  Services ...  Travel ...  Income  Current transfers  Capital account  Financial account  Net 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

5 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Balance of payments  Current account  Goods  Services ...  Travel ...  Primary income  Secondary income  Capital account  Financial account  Errors 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)

6 Balance of Payments Working Group Luxembourg, 2-3 April 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.

7 Balance of Payments Working Group Luxembourg, 2-3 April 2012 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

8 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Different possible approaches: 2. Current Portuguese methodology Models Surveys Settle- ments data

9 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Data sources for Travel 2. Current Portuguese methodology Purchase/sales of foreign currency at counter; Payments with traveller's cheques; International transfers classified as Travel Settlements system Cash withdrawals Purchases with payment cards Credit and debit cards Overnight stays in PT hotels (for exports); Total income from hotel activity (for exports). Statistics Portugal (NSI)

10 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Compilation process 2. Current Portuguese methodology Settlements system 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

11 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Compilation process 2. Current Portuguese methodology On a monthly basis The year-on-year growth rates are estimated according to the variation of the different data sources

12 Balance of Payments Working Group Luxembourg, 2-3 April 2012 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

13 Balance of Payments Working Group Luxembourg, 2-3 April Payment cards as data source Source: ECB – Payments and Settlement Systems Statistics Structure of cashless payments within the European Union

14 Balance of Payments Working Group Luxembourg, 2-3 April Payment cards as data source Source: ECB – Payments and Settlement Systems Statistics Payment cards as a percentage of total cashless payments

15 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Portuguese institutional environment 3. Payment cards as data source PT market Only one large company involved in processing payment cards data – SIBS – Forward Payment Solutions In 2010, more than 18 million of MB cards 16 thousand ATM terminals 260 thousand POS terminals In Banco de Portugal Articulation between Payments Systems Dept. and Statistics Dept. - Single input flow - Different exploitation of the data

16 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Variables in payment cards data: availability (current situation) 3. Payment cards as data source Type of terminalBrandIssuer bankType of operationCountryMode of transactionNumber and amount MMMMMAM ATM, POS, …Mastercard, Visa, …Only for PT banksWithdraw, payment; nat., intWhere is issued or usedFace-to-face or at distanceOf the transaction

17 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Variables in payment cards data: statistical link (current situation) 3. Payment cards as data source Type of terminalBrandIssuer bankType of operationCountryMode of transactionNumber and amount MMMMMAM -- Cross check with settlementsFilter international transactionsGeographical breakdownExcl. internet purchases of goodsAmount of transaction

18 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Future situation: new variables available 3. Payment cards as data source Activity sectorLocationBIN code MMM POS merchant NACE or codeSupermarket, airport, …Business card, …

19 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Future situation: Statistical link with new variables… 3. Payment cards as data source Activity sector Location BIN code M M M Estimate for kind of expenses Fine-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)

20 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Strengths and weaknesses 3. Payment cards as data source Excelent coverage Excelent timeliness High frequency Good detail Low cost  Inaccuracy  Different concepts  Potentially multiple processors challenges

21 Balance of Payments Working Group Luxembourg, 2-3 April 2012 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

22 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Exercise at European level 4. Final remarks 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

23 Balance of Payments Working Group Luxembourg, 2-3 April Final remarks Type of terminalBrandIssuer bankType of operationCountryMode of transactionNumber and amountChannel- ≈ Territory of activityIssuer / acquirer- Number and amountActivity sectorLocationBIN codeSector- PTECB Pilot data monthlyquarterly

24 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Merits of the data source Some details to be additionally explored for BPM6 requirements 4. Final remarks 

25 Balance of Payments Working Group Luxembourg, 2-3 April 2012 Thank you for your attention!