IDEAS home Printed from https://ideas.repec.org/p/fip/fedbdr/16-3.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.bostonfed.org/publications/research-data-report/2016/2014-survey-of-consumer-payment-choice-summary-results.aspx
    File Function: Summary
    Download Restriction: no

    File URL: https://www.bostonfed.org/-/media/Documents/researchdatareport/pdf/rdr1603.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    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. 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.).
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    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.).
    12. Stephanie Lo & J. Christina Wang, 2014. "Bitcoin as money?," Current Policy Perspectives 14-4, Federal Reserve Bank of Boston.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joanna Stavins, 2017. "How do consumers make their payment choices?," Research Data Report 17-1, Federal Reserve Bank of Boston.
    2. 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.
    3. Scott Schuh, 2017. "Measuring consumer expenditures with payment diaries," Working Papers 17-2, Federal Reserve Bank of Boston.
    4. Martin Brown & Nicole Hentschel & Hannes Mettler & Helmut Stix, 2020. "Financial Innovation, Payment Choice and Cash Demand - Causal Evidence from the Staggered Introduction of Contactless Debit Cards," Working Papers on Finance 2002, University of St. Gallen, School of Finance.
    5. Arango, Carlos & Huynh, Kim P. & Sabetti, Leonard, 2015. "Consumer payment choice: Merchant card acceptance versus pricing incentives," Journal of Banking & Finance, Elsevier, vol. 55(C), pages 130-141.
    6. 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.
    7. Claire Greene & Scott Schuh, 2014. "U.S. consumers' holdings and use of $100 bills," Research Data Report 14-3, Federal Reserve Bank of Boston.
    8. Claire Greene & Oz Shy, 2020. "How Consumers Get Cash: Evidence from a Diary Survey," Consumer Payments Research Data Reports 2019-1, Federal Reserve Bank of Atlanta.
    9. Martin Brown & Nicole Hentschel & Hannes Mettler & Helmut Stix, 2020. "Financial Innovation, Payment Choice and Cash Demand – Causal Evidence from the Staggered Introduction of Contactless Debit Cards (Martin Brown,Nicole Hentschel, Hannes Mettler, Helmut Stix)," Working Papers 230, Oesterreichische Nationalbank (Austrian Central Bank).
    10. Francisco J. Buera & Juan Pablo Nicolini, 2020. "Liquidity Traps and Monetary Policy: Managing a Credit Crunch," American Economic Journal: Macroeconomics, American Economic Association, vol. 12(3), pages 110-138, July.
    11. Janet Hua Jiang & Enchuan Shao, 2014. "Understanding the Cash Demand Puzzle," Staff Working Papers 14-22, Bank of Canada.
    12. Fernando Alvarez & Francesco Lippi & Roberto Robatto, 2019. "Cost of Inflation in Inventory Theoretical Models," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 32, pages 206-226, April.
    13. Pieters, Gina & Vivanco, Sofia, 2017. "Financial regulations and price inconsistencies across Bitcoin markets," Information Economics and Policy, Elsevier, vol. 39(C), pages 1-14.
    14. Fantazzini, Dean & Nigmatullin, Erik & Sukhanovskaya, Vera & Ivliev, Sergey, 2016. "Everything you always wanted to know about bitcoin modelling but were afraid to ask. I," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 44, pages 5-24.
    15. Nicole Jonker & Mirjam Plooij & Johan Verburg, 2015. "Does a public campaign influence debit card usage? Evidence from the Netherlands," DNB Working Papers 470, Netherlands Central Bank, Research Department.
    16. Marco Angrisani & Kevin Foster & Marcin Hitczenko, 2015. "The 2013 Survey of Consumer Payment Choice: technical appendix," Research Data Report 15-5, Federal Reserve Bank of Boston.
    17. Greg W. Hunter & Craig Kerr, 2019. "Virtual Money Illusion and the Fundamental Value of Non-Fiat Anonymous Digital Payment Methods," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 25(2), pages 151-164, May.
    18. Kim Huynh & Gradon Nicholls & Oleksandr Shcherbakov, 2019. "Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods," Staff Working Papers 19-32, Bank of Canada.
    19. Naoki Wakamori & Angelika Welte, 2017. "Why Do Shoppers Use Cash? Evidence from Shopping Diary Data," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 49(1), pages 115-169, February.
    20. Kim Huynh & Philipp Schmidt-Dengler & Helmut Stix, 2014. "The Role of Card Acceptance in the Transaction Demand for Money," Staff Working Papers 14-44, Bank of Canada.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedbdr:16-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Spozio (email available below). General contact details of provider: https://edirc.repec.org/data/frbbous.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.