Security tops consumer payment priorities, Makhlouf says
Central Bank of Ireland Governor Gabriel Makhlouf presented new research on payment systems on September 18, 2026. The findings show that consumers prioritize security and fraud safeguards over convenience, while retail payment processing costs Irish businesses €1 billion annually.
Security beats speed for consumers
Central Bank of Ireland survey data show that close to half of respondents under 35 use mobile wallets as their primary payment method, while three in five adults use digital banks alongside traditional accounts.
However, consumers rank security, reliability, trust, and fraud safeguards ahead of speed, convenience, or cost when choosing payment instruments.
Processing retail payments costs Irish businesses at least €1 billion annually, representing roughly 0.3 percent of GNI* and at least 1 percent of consumer-facing activity.
Smaller merchants bear disproportionately higher per-transaction fees than larger competitors, passing these expenses directly to consumers through retail pricing.
Anchoring the digital ledger
Makhlouf outlined a two-tier monetary architecture where central bank money anchors the financial system while private providers deliver innovation.
The Eurosystem is upgrading infrastructure through Projects Pontes and Appia, connecting distributed ledger platforms with TARGET Services to facilitate wholesale settlement.
On the retail side, Makhlouf stressed that physical cash and the digital euro must remain widely accessible to guarantee public trust and maintain convertibility across platforms.
Trust trumps convenience
Fintech innovation means little if users remain skeptical of non-bank security.
Exposing the €1 billion merchant cost provides a powerful rationale for aggressive infrastructure reform.
Central banks must enforce interoperability before private payment rails permanently fragment the market.