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The 2009 survey of consumer payment choice

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This paper presents results of the 2009 Survey of Consumer Payment Choice (SCPC), along with revised 2008 SCPC data. In 2009, the average U.S. consumer held 5.0 of the nine payment instruments available, including cash, and used 3.8 of them during a typical month. Between the 2008 and 2009 surveys, a period that includes the trough of the latest recession, consumers significantly increased their use of cash and close substitutes for cash, such as money orders and prepaid cards. At the same time, consumers reduced their use of credit cards and (to a lesser extent) debit cards, as well as payments made using a bank account number. Weaker economic conditions, new government regulations, and bank pricing of payment card services all likely contributed to the shift back toward cash. However, it is difficult to determine how much each of these factors contributed, and whether the shift is transitory or permanent, without more data and research on consumer payment choice. In 2009, one in three consumers had a prepaid card and nearly as many had a nonbank payment account online, while 3 percent made a mobile payment. By focusing on payments by consumers only, the SCPC complements the recent 2010 Federal Reserve Payment Study, which describes the entire noncash payments economy.

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  • Kevin Foster & Erik Meijer & Scott Schuh & Mike Zabek, 2011. "The 2009 survey of consumer payment choice," Public Policy Discussion Paper 11-1, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbpp:11-1
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    1. Schuh, Scott & Stavins, Joanna, 2010. "Why are (some) consumers (finally) writing fewer checks? The role of payment characteristics," Journal of Banking & Finance, Elsevier, vol. 34(8), pages 1745-1758, August.
    2. Kevin Foster & Erik Meijer & Scott Schuh & Mike Zabek, 2010. "The 2008 Survey of Consumer Payment Choice," Public Policy Discussion Paper 09-10, Federal Reserve Bank of Boston.
    3. Geoffrey R. Gerdes, 2008. "Recent payment trends in the United States," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 94(Oct), October.
    4. Crowe Marianne & Rysman Marc & Stavins Joanna, 2010. "Mobile Payments at the Retail Point of Sale in the United States: Prospects for Adoption," Review of Network Economics, De Gruyter, vol. 9(4), pages 1-31, December.
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    Cited by:

    1. Claire Greene & Scott Schuh & Joanna Stavins, 2017. "The 2015 Survey of Consumer Payment Choice: summary results," Research Data Report 17-3, Federal Reserve Bank of Boston.
    2. Agnieszka Huterska & Anna Iwona Piotrowska & Joanna Szalacha-Jarmużek, 2021. "Fear of the COVID-19 Pandemic and Social Distancing as Factors Determining the Change in Consumer Payment Behavior at Retail and Service Outlets," Energies, MDPI, vol. 14(14), pages 1-18, July.
    3. Imaduddin Sahabat & Teguh Dartanto & Haidy A. Passay & Diah Widyawati, 2017. "Electronics Payment Decisions of the Indonesian Urban Households: A Nested Logit Analysis of the Effects of the Payment Characteristics," International Journal of Economics and Financial Issues, Econjournals, vol. 7(5), pages 498-511.
    4. Marcin Hitczenko & Mingzhu Tai, 2014. "Measuring unfamiliar economic concepts: the case of prepaid card adoption," Working Papers 14-9, Federal Reserve Bank of Boston.
    5. Marcin Hitczenko, 2013. "Optimal recall period length in consumer payment surveys," Working Papers 13-16, Federal Reserve Bank of Boston.
    6. Auer, Raphael & Tercero-Lucas, David, 2022. "Distrust or speculation? The socioeconomic drivers of U.S. cryptocurrency investments," Journal of Financial Stability, Elsevier, vol. 62(C).
    7. 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.
    8. Bruno Karoubi & Régis Chenavaz & Corina Paraschiv, 2016. "Consumers’ perceived risk and hold and use of payment instruments," Applied Economics, Taylor & Francis Journals, vol. 48(14), pages 1317-1329, March.
    9. Dubravka Ritter, 2012. "Do we still need the Equal Credit Opportunity Act?," Consumer Finance Institute discussion papers 12-03, Federal Reserve Bank of Philadelphia.
    10. Tamas Briglevics & Scott Schuh, 2013. "U.S. consumer demand for cash in the era of low interest rates and electronic payments," Working Papers 13-23, Federal Reserve Bank of Boston.
    11. Choi, Hyung Sun, 2014. "Money, credit, risk of loss, and limited participation," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 9-23.
    12. Marco Angrisani & Arie Kapteyn & Scott Schuh, 2014. "Measuring Household Spending and Payment Habits: The Role of "Typical" and "Specific" Time Frames in Survey Questions," NBER Chapters, in: Improving the Measurement of Consumer Expenditures, pages 414-440, National Bureau of Economic Research, Inc.
    13. Oz Shy, 2012. "Who gains and who loses from the 2011 debit card interchange fee reform?," Public Policy Discussion Paper 12-6, Federal Reserve Bank of Boston.
    14. Konstantinos Nikolopoulos & Konstantia Litsiou, 2019. "Social Collateral and consumer payment media during the economic crisis in Europe," Working Papers 19009, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    15. Lotz, Sébastien & Zhang, Cathy, 2016. "Money and credit as means of payment: A new monetarist approach," Journal of Economic Theory, Elsevier, vol. 164(C), pages 68-100.
    16. Peter Mooslechner & Helmut Stix & Karin Wagner, 2012. "The Use of Payment Instruments in Austria - A Study Based on Survey Data from 1996 to 2011," Monetary Policy & the Economy, Oesterreichische Nationalbank (Austrian Central Bank), issue 4, pages 53-77.
    17. Scott Schuh & Joanna Stavins, 2014. "The 2011 and 2012 Surveys of Consumer Payment Choice," Research Data Report 14-1, Federal Reserve Bank of Boston.
    18. Kevin Foster & Scott Schuh & Hanbing Zhang, 2013. "The 2010 Survey of Consumer Payment Choice," Research Data Report 13-2, Federal Reserve Bank of Boston.
    19. repec:fip:a00001:89583 is not listed on IDEAS
    20. Joanna Stavins, 2016. "The effect of demographics on payment behavior: panel data with sample selection," Working Papers 16-5, Federal Reserve Bank of Boston.
    21. Marcin Hitczenko, 2015. "Estimating population means in the 2012 Survey of Consumer Payment Choice," Research Data Report 15-2, Federal Reserve Bank of Boston.
    22. Oz Shy, 2014. "Measuring Some Effects Of The 2011 Debit Card Interchange Fee Reform," Contemporary Economic Policy, Western Economic Association International, vol. 32(4), pages 769-783, October.
    23. Sean Connolly & Joanna Stavins, 2015. "Payment instrument adoption and use in the United States, 2009–2013, by consumers' demographic characteristics," Research Data Report 15-6, Federal Reserve Bank of Boston.
    24. Nur Annisa Hasniawati & Eva R. Lase & Akhis R. Hutabarat, 2020. "Indonesian Household Payment Choice: A Nested Logit Analysis," Journal of Central Banking Theory and Practice, Central bank of Montenegro, vol. 9(special i), pages 291-313.
    25. Konstantinos Nikolopoulos & Konstantia Litsiou, 2019. "Consumer payment choice during the crisis in Europe: a heterogeneous behaviour?," Working Papers 19007, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).

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    Keywords

    Payment systems; Consumer surveys; Credit cards; Cash transactions;
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