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The 2016 Diary of Consumer Payment Choice

Author

Listed:
  • Claire Greene
  • Scott Schuh

Abstract

This paper describes key results from the 2016 Diary of Consumer Payment Choice (DCPC), the third in a series of diary surveys that measure payment behavior through the daily recording of U.S. consumers? spending. In October 2016, consumers paid mostly with cash (31 percent of payments), debit cards (27 percent), and credit cards (18 percent). These instruments accounted for 76 percent of the number of payments, but only 34 percent of the total value of payments, because they tend to be used more for smaller-value payments. Electronic payments accounted for 43 percent of the value of payment but only 14 percent of the number of payments. The average value of a cash transaction was $22, compared to $112 for the average noncash transaction (and $84 for all transactions). The average value of consumers? holdings of cash on their persons (in pocket, purse, or wallet) was $57, and the median was $24. Given uncertainty about the comparability of point estimates from the 2015 DCPC and the 2016 DCPC, this report includes confidence intervals and probability-based estimates of the changes in consumer payment behavior from 2015 to 2016.

Suggested Citation

  • Claire Greene & Scott Schuh, 2017. "The 2016 Diary of Consumer Payment Choice," Research Data Report 17-7, Federal Reserve Bank of Boston.
    • Handle: RePEc:fip:fedbdr:17-7
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    References listed on IDEAS

    as
    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. Klee, Elizabeth, 2008. "How people pay: Evidence from grocery store data," Journal of Monetary Economics, Elsevier, vol. 55(3), pages 526-541, April.
    3. Ejis, 2017. "Table of Contents," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    4. Briglevics, Tamás & Schuh, Scott, 2014. "This is what's in your wallet... and how you use it," Working Paper Series 1684, European Central Bank.
    5. Claire Greene & Scott Schuh & Joanna Stavins, 2018. "The 2012 diary of consumer payment choice," Research Data Report 18-1, Federal Reserve Bank of Boston.
    6. 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.
    7. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2017. "The 2012 diary of consumer payment choice: technical appendix," Research Data Report 17-5, Federal Reserve Bank of Boston.
    8. Unknown, 2016. "Department Publications 2014," Publications Lists 239845, University of Minnesota, Department of Applied Economics.
    9. Claire Greene & Shaun O'Brien & Scott Schuh, 2017. "U. S. consumer cash use, 2012 and 2015: an introduction to the Diary of Consumer Payment Choice," Research Data Report 17-6, Federal Reserve Bank of Boston.
    10. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2017. "The 2015 Survey of Consumer Payment Choice: technical appendix," Research Data Report 17-4, Federal Reserve Bank of Boston.
    11. 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.
    12. 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.
    13. Cohen, Michael & Rysman, Marc, 2012. "Payment Choice with Consumer Panel Data," Working Paper series 148348, University of Connecticut, Charles J. Zwick Center for Food and Resource Policy.
    14. Ejis, 2017. "Table of Contents," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 02, June.
    15. Claire Greene & Joanna Stavins, 2020. "The 2017 Diary of Consumer Payment Choice," Consumer Payments Research Data Reports 2018-5, Federal Reserve Bank of Atlanta.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Claire Greene & Joanna Stavins, 2020. "2018 Diary of Consumer Payment Choice," Consumer Payments Research Data Reports 2019-3, Federal Reserve Bank of Atlanta.
    2. 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).
    3. Bernardino Adão & André C. Silva, 2021. "Government financing, inflation, and the financial sector," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1357-1396, June.
    4. Xu, Xiaobing & Chen, Rong & Jiang, Lan, 2020. "The Influence of Payment Mechanisms on Pricing: When Mental Imagery Stimulates Desire for Money," Journal of Retailing, Elsevier, vol. 96(2), pages 178-188.
    5. Claire Greene & Joanna Stavins, 2020. "The 2017 Diary of Consumer Payment Choice," Consumer Payments Research Data Reports 2018-5, Federal Reserve Bank of Atlanta.
    6. Morten Linnemann Bech & Umar Faruqui & Frederik Ougaard & Cristina Picillo, 2018. "Payments are a-changin' but cash still rules," BIS Quarterly Review, Bank for International Settlements, March.
    7. Maio, Paulo & Silva, André C., 2020. "Asset pricing implications of money: New evidence," Journal of Banking & Finance, Elsevier, vol. 120(C).
    8. Mr. Tanai Khiaonarong & David Humphrey, 2019. "Cash Use Across Countries and the Demand for Central Bank Digital Currency," IMF Working Papers 2019/046, International Monetary Fund.
    9. Świecka, Beata & Terefenko, Paweł & Paprotny, Dominik, 2021. "Transaction factors’ influence on the choice of payment by Polish consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 58(C).

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    More about this item

    Keywords

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

    JEL classification:

    • 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
    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance

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