Based on the data of the European Central Bank (ECB), banks in EU27 markets perform better in countries with more developed retail payment services. The goal of the current research is to investigate the impact of the usage of payment cards and retail payment transaction equipment on bank performance. Research period covers 2008-2012. ECB statistics on the banking sectors of EU27 countries was processed by means of SPSS software. Regression analysis was conducted to define the relationship between retail payment variables and bank performance indices. The analysis yielded a statistically significant linear regression model that links bank operating income with two explanatory factors: value of transactions and number of automatic teller machines (ATM).