Retail payment services not profitable for banks

Abstract

In Finland, we are used to making payments through our bank accounts, either as credit transfers via online facilities or by using payment cards at shops. We seldom use cash, except for very small payments. Payment services related to bank accounts constitute an essential element of our everyday life. Production of payment services requires that banks have in place large systems and the necessary resources for their maintenance and development. According to a cost study, the results of which will be published shortly, production of payment services is in general unprofitable for banks and these services are financed out of revenues from other banking operations.