Micro-level bank card data as a new lens for Official Statistics

Micro-level bank card data offers statistical offices a timely and granular view of economic activity, enabling deeper insights into the digital economy. The National Statistics Office of Malta, in collaboration with the Central Bank of Malta, has acquired point-of-sale (POS) and online transaction data for the use of official statistics. Methodologies for data standardisation, linkage to the Statistical Business Register and merchant identification via fuzzy matching are outlined. The alignment between traditional survey and bank card indicators, was examined to analyse the bank card data's representativeness of the retail industry. Two metrics were derived: the Merchant Penetration Rate and the Weighted Average Bank Card Usage Rate, to assess the utility of bank card data as a proxy for market activity. Significant limitations remain a concern, such as partial market coverage and reliance on third-party data providers. The paper also discusses policy implications for improving statistical visibility to improve coverage, regional analysis, and reducing tax evasion. This article aims to contribute to the growing need for alternative data in official statistics and the evolving role of national statistics institutes in a digital economy.