Towards a European payments market: survey results on cross-border payment behaviour of Dutch consumers

National noncash retail payment markets in the euro area will gradually migrate to a single euro payments area (SEPA) from 2008 onwards. Within SEPA, citizens will be able to make and receive payments to and from other euro countries as easily and safely, and on the same conditions, as in their own country using one bank account and one set of payment instruments (debit card, credit transfer and direct debit). This study reveals that the Dutch pay differently for their cross-border purchases than for their domestic purchases and that payment behaviour differs per euro country. The limited cross-border acceptance of the debit card hampers its cross-border usage and encourages the usage of cash and credit cards. Furthermore the Dutch most often use electronic transfers, followed by the credit card, for remote cross-border payments. The speed at which the Dutch will switch over to European debit cards and credit transfers will depend heavily on acceptance levels, prices and safety. Migration to the European direct debit may be hardest to archieve. Here, safety is of vital importance.