E Commerce Overview

Ireland’s e-commerce sector has grown rapidly in recent years, mainly attributed to U.S. and other non-European computer and information technology companies’ use of the country as a gateway to the rest of the European continent. U.S. firms find Ireland attractive because of its relatively low taxes, highly educated population, its inclusion in the euro-zone and because it is the only English-speaking nation in the European economic and monetary union.
Ireland is a major provider of e-commerce software and technology, and individuals may purchase a wide range of goods and services online. Many international computer and Internet companies including IBM, AOL Time Warner and Microsoft (all U.S.), have businesses in Ireland. There are also homegrown telecommunications and e-commerce companies such as Eircom. More than 800 firms were members of the Irish Internet Association, the nation’s largest online business association, in November 2001. Companies involved in electronic commerce offer services ranging from car rentals to recruitment services.

Government Promotion of E-Commerce

The Irish Government is committed to developing a strong e-commerce presence for Ireland internationally, and is undertaking a series of initiatives across its departments and agencies to stimulate the sector. The Information Society Commission, an advisory body established in 1997, is overseeing the Irish Government’s strategy for extending the use of IT throughout private and professional spheres in Ireland.

Payment Technologies

Insert types of payment technologies employed in Ireland] With 63% of Irish adults without a credit card, this helps explain why Irish people conduct fewer e-commerce transactions compared to the UK where credit card ownership is double the level.

Ireland Payment Market Overview

Payment card penetration in Ireland is low compared to many European countries. Despite rapid growth over the last few years, Ireland still lags behind EU average in terms of payment card point of pay infrastructure and also card penetration. However, although the Irish market has a low penetration of payment cards, average card usage by Irish card-holders is among one of the highest in Europe.

Many reasons why Ireland is well positioned to become a best practice country with respect to electronic payments

Potential factors for Ireland

Government and Regulatory

• The Irish Government is attempting to position Ireland as a leader of e-Europe

• E Payment has been accepted as a key enabler by different Government agencies including Reach, Forfas, Procurement Policy etc.

• There is significant legislative drive with the EU to create a single harmonized payment area in the Euro zone and increase the level of E transactions

• Ireland has a young and increasingly sophisticated population

• The target age-segments for adopting new technologies will continue to grow for many years

• Technology literacy is improving

• Internet and mobile technologies are mature with mobile penetration  reaching saturation.

• There is momentum behind the adoption of Smart Card technologies driven by different industry groups -banking; mass transit; government

•  The local software industry is vibrant and is continuing to innovate in areas such as biometrics & the digital content industry

• Ireland has experienced high GDP growth for a sustained period of time - increasing affluence level of the society

• In the current economic cycle, there is greater focus to reduce inefficiency & increase productivity in every area and for all players in the economy

• To attract inward investment, there may be increasing need to position Ireland as a highly sophisticated innovation hub in Europe with electronic transactional environment

• The physical payment infrastructure in Ireland is rapidly catching up with the rest of Europe

• There are significant infrastructure initiatives underway to improve access to consumers and businesses, which can stimulate u-payment and u-commerce