Nevertheless, over this period there was a gradual decline in the spread between average interest rates paid on loans and the cash rate. For example, the spread between the average mortgage rate paid and the cash rate declined from 275 basis points in 1996 to around 125 basis points in 2007 (Graph 8).
Other surveys that we and others have performed show that trust – along with price and convenience – actually determines customers’ choice of payment solution and provider of payment services. Experience also shows that trust can rapidly evaporate. One unfortunate experience – funds that are lost, a solution that does not work, or a breach of data security – could undermine it.