Academic journal article ABA Banking Journal

A Preference for Plastic: A Recent Federal Reserve Study Spotlights Trends in Noncash Payments

Academic journal article ABA Banking Journal

A Preference for Plastic: A Recent Federal Reserve Study Spotlights Trends in Noncash Payments

Article excerpt

It's a fairly well-known fact that consumers in the U.S. are increasingly choosing to make cashless payments. Gallup reports that just under a quarter of people (24 percent) make some or all of their purchases with cash, down from 36 percent five years ago.

As noncash payments continue to dominate--totaling almost $178 trillion in 2015--the Federal Reserve recently released its triennial Payments Survey, which examines trends among various noncash payment types, including debit and credit cards, ACH and checks.

DEBIT CARDS. When it comes to making payments, Americans are reaching for their debit cards most frequently, the survey found. Of the noncash payment types examined, debit cards (which include payments made with prepaid cards) notched the highest number of total transactions--69.5 billion in 2015, up from 56.5 billion from the previous survey conducted in 2012. The total value of debit transactions also rose by $0.46 trillion in that timeframe to total $2.56 trillion.

CREDIT CARDS. Credit cards were the second most popular payment method by volume, the Federal Reserve said. The number of credit card transactions grew faster than debit, ACPI or checks between 2012 and 2015, increasing at a rate of 8 percent and totaling 33. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.