regulation ) act 1998 ( psra ), as proposed by the farrell review, would open up the possibility of regulating newer entities in the payments ecosystem. greater transparency of merchant payment costs through an expansion of the consumer data right could also help drive increased competition between acquirers. and new payment methods could emerge over time to compete with card payments, including through the use of qr codes for account - to - account payments at retailers. enhancing australia ’ s fast payments system the second broad issue i want to talk about is the need to continue to build on the architecture of australia ’ s fast payments system, the npp. the npp is now available to the customers of more than 110 financial institutions, and is used to make around a quarter of all account - to - account payments. over the past year, the npp processed over a billion transactions, worth more than $ 1 trillion, and usage continues to grow. overall, take - up of fast payments by australians compares favourably with similar systems in other advanced economies ( graph 7 ). graph 7 use of fast payments systems transactions per capita, annualised no. no. mobilepay npp ( australia ) ( denmark ) swish ( sweden ) fps ( hong kong ) fast ( singapore ) fps ( uk ) 5 6 7 8 9 10 11 12 13 years after launch sources : fpsl ; getswish ; hkicl ; mas ; mobilepay ; national statistics agencies ; nppa the use of payids has also grown. payids are a simple way of addressing payments, for example to a registered mobile number, email address or business number. almost 13 million payids have been registered, with payids used to initiate around a fifth of npp payments. apart from being convenient, payids provide a safer way to make payments from one account to another. when a payment is addressed to a payid, the payer is shown the name of the person or business they are paying before they confirm the payment. this can help to reduce the chance of mistakenly paying the wrong person. it can also help the payer avoid being deceived into sending a payment to the account of a scammer rather than of the intended recipient. a recent survey commissioned by npp australia shows that one in four payid users have stopped or edited a payid payment where they noticed that the recipient ’ s details were wrong. even so, we are not yet realising the full benefits of this feature of the system

to - day transactions, there is still strong demand for banknotes as a store of wealth, with 38 $ 50 banknotes and 18 $ 100 banknotes on issue for every australian ( graph 4 ). graph 3 value of cash withdrawals monthly, seasonally adjusted * $ b $ b atm ( lhs ) 2. 4 1. 8 1. 2 debit card cash outs ( rhs ) 0. 6 * series break between february 2018 and may 2018 due to changes in collection and reporting methodology. source : rba graph 4 banknotes in circulation per capita * no. no. $ 5 $ 10 $ 20 $ 50 $ 100 * calculated using march 2022 population figures and banknotes in circulation as at end - november 2022. sources : abs ; rba while it is pleasing to see merchant payment costs trend lower, three developments are working in the other direction. the first is the shift to higher - cost international scheme debit cards and away from eftpos ; on average, the international debit schemes cost merchants over 20 basis points more to accept than eftpos. the second is the shift to online commerce, where merchants typically face higher payment costs. and the third is the greater use of mobile wallets offered by apple pay, google pay and samsung pay. use of these wallets is growing very quickly and they are often more expensive for merchants to accept ( graph 5 ). graph 5 mobile wallet transactions share of card transactions % % total debit credit m j s d m j s d m j source : rba i would also like to highlight the fact that there are large differences in the payments costs incurred by small and large businesses ( graph 6 ). small businesses, on average, pay twice what large businesses pay to process the same transaction. while economies of scale explain some of this difference, they are not the full story. r e s e r v e b a n k o f au s t r a l i a graph 6 cost of acceptance by merchant size * per cent of value of card transactions, 2020 / 21 % % 1. 5 1. 5 1. 0 1. 0 0. 5 0. 5 0. 0 < $ 100k $ 100k – $ 1m $ 1m – $ 10m > $ 10m 0. 0 merchant size * weighted average. merchant size based on annual value of eftpos, mastercard and visa transactions. source : rba given these various developments, the