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The 2014 survey of consumer payment choice: summary results

Author

Listed:
  • Claire Greene
  • Scott Schuh
  • Joanna Stavins

Abstract

In 2014, the average number of U.S. consumer payments per consumer per month decreased to 66.1, in a statistically insignificant decline from 67.9 in 2013. The number of payments made by paper check continued to decline, falling by 0.7 to 5.0 checks per month, while the number of electronic payments (online banking bill payments, bank account number payments, and deductions from income) increased by 0.6 to 6.9 of these payments per month. The monthly shares of debit cards (31.1 percent), cash (25.6 percent), and credit cards (23.3 percent) continued to be largest; while the share of electronic payments rose a significant 1.2 percentage points to 10.5 percent. Consumers? average cash holdings dropped by about 10 percent to $207 in 2014. The number of cash withdrawals made by consumers per month also declined by about one withdrawal per month to 5.6. There was no significant change in cash use, however. About half of 1 percent of U.S. consumers held bitcoin or other virtual currencies. The 2014 SCPC includes a formal measure of ?underbanked? consumers for the first time.

Suggested Citation

  • Claire Greene & Scott Schuh & Joanna Stavins, 2016. "The 2014 survey of consumer payment choice: summary results," Research Data Report 16-3, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbdr:16-3
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    References listed on IDEAS

    as
    1. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    2. Briglevics, Tamás & Schuh, Scott, 2014. "This is what's in your wallet... and how you use it," Working Paper Series 1684, European Central Bank.
    3. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2013. "The 2010 Survey of Consumer Payment Choice: technical appendix," Research Data Report 13-3, Federal Reserve Bank of Boston.
    4. Greene, Claire & Stavins, Joanna, 2017. "Did the Target data breach change consumer assessments of payment card security?," Journal of Payments Strategy & Systems, Henry Stewart Publications, vol. 11(2), pages 121-133, August.
    5. John Bagnall & David Bounie & Kim P. Huynh & Anneke Kosse & Tobias Schmidt & Scott Schuh, 2016. "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data," International Journal of Central Banking, International Journal of Central Banking, vol. 12(4), pages 1-61, December.
    6. Claire Greene & Oz Shy, 2015. "How are U.S. consumers using general purpose reloadable prepaid cards?: are they being used as substitutes for checking accounts?," Research Data Report 15-3, Federal Reserve Bank of Boston.
    7. Sergei Koulayev & Marc Rysman & Scott Schuh & Joanna Stavins, 2016. "Explaining adoption and use of payment instruments by US consumers," RAND Journal of Economics, RAND Corporation, vol. 47(2), pages 293-325, May.
    8. Anton Badev & Matthew Chen, 2014. "Bitcoin: Technical Background and Data Analysis," Finance and Economics Discussion Series 2014-104, Board of Governors of the Federal Reserve System (U.S.).
    9. Marcin Hitczenko & Mingzhu Tai, 2014. "Measuring unfamiliar economic concepts: the case of prepaid card adoption," Working Papers 14-9, Federal Reserve Bank of Boston.
    10. Marcin Hitczenko, 2015. "Estimating population means in the 2012 Survey of Consumer Payment Choice," Research Data Report 15-2, Federal Reserve Bank of Boston.
    11. Sarah Bloom Raskin, 2011. "Economic and financial inclusion in 2011: what it means for Americans and our economic recovery: a speech at the New America Foundation Forum, Washington, D.C., June 29, 2011," Speech 577, Board of Governors of the Federal Reserve System (U.S.).
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    Cited by:

    1. Jeffrey Carpenter & Emiliano Huet-Vaughn & Peter Hans Matthews & Andrea Robbett & Dustin Beckett & Julian Jamison, 2021. "Choice Architecture to Improve Financial Decision Making," The Review of Economics and Statistics, MIT Press, vol. 103(1), pages 102-118, March.
    2. Kevin Foster & Claire Greene & Joanna Stavins, 2020. "2018 Survey of Consumer Payment Choice," Consumer Payments Research Data Reports 2019-2, Federal Reserve Bank of Atlanta.
    3. Krislert Samphantharak & Scott Schuh & Robert M. Townsend, 2018. "Integrated Household Surveys: An Assessment Of U.S. Methods And An Innovation," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 50-80, January.
    4. Judson, Ruth, 2017. "The Death of Cash? Not So Fast: Demand for U.S. Currency at Home and Abroad, 1990-2016," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162910, Deutsche Bundesbank.
    5. Jonker, Nicole & Hernandez, Lola & de Vree, Renate & Zwaan, Patricia, 2017. "From cash to cards: how debit card payments overtook cash in the Netherlands," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 168371, Deutsche Bundesbank.
    6. Stephen Williamson, 2017. "The Curse of Cash," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 52(1), pages 78-80, January.
    7. Scott L. Fulford & Joanna Stavins, 2019. "Does getting a mortgage affect credit card use?," Working Papers 19-8, Federal Reserve Bank of Boston.
    8. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2016. "The 2014 survey of consumer payment choice: technical appendix," Research Data Report 16-4, Federal Reserve Bank of Boston.
    9. Claire Greene & Scott Schuh, 2017. "The 2016 Diary of Consumer Payment Choice," Research Data Report 17-7, Federal Reserve Bank of Boston.

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    More about this item

    Keywords

    cash; Survey of Consumer Payment Choice; checks; electronic payments; debit cards; prepaid cards; unbanked; checking accounts; credit cards; payment preferences;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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