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The 2009 survey of consumer payment choice

Author

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  • Kevin Foster
  • Erik Meijer
  • Scott Schuh
  • Michael A. Zabek

Abstract

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.

Suggested Citation

  • Kevin Foster & Erik Meijer & Scott Schuh & Michael A. 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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    References listed on IDEAS

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    1. Kevin Foster & Erik Meijer & Scott Schuh & Michael A. Zabek, 2010. "The 2008 Survey of Consumer Payment Choice," Public Policy Discussion Paper 09-10, Federal Reserve Bank of Boston.
    2. 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.
    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.), issue Oct, pages 75-106.
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    Citations

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    Cited by:

    1. Greene, Claire & Schuh, Scott & Stavins, Joanna, 2017. "The 2015 Survey of Consumer Payment Choice: summary results," Research Data Report 17-3, Federal Reserve Bank of Boston.
    2. Hitczenko, Marcin, 2013. "Optimal recall period length in consumer payment surveys," Working Papers 13-16, Federal Reserve Bank of Boston.
    3. Angrisani, Marco & Foster, Kevin & Hitczenko, Marcin, 2013. "The 2010 Survey of Consumer Payment Choice: technical appendix," Research Data Report 13-3, Federal Reserve Bank of Boston.
    4. 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.
    5. Choi, Hyung Sun, 2014. "Money, credit, risk of loss, and limited participation," International Review of Economics & Finance, Elsevier, vol. 34(C), pages 9-23.
    6. 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.
    7. 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.
    8. 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.
    9. Schuh, Scott & Stavins, Joanna, 2014. "The 2011 and 2012 Surveys of Consumer Payment Choice," Research Data Report 14-1, Federal Reserve Bank of Boston.
    10. Foster, Kevin & Schuh, Scott & Zhang, Hanbing, 2013. "The 2010 Survey of Consumer Payment Choice," Research Data Report 13-2, Federal Reserve Bank of Boston.
    11. Connolly, Sean & Stavins, Joanna, 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.
    12. Hitczenko, Marcin & Tai, Mingzhu, 2014. "Measuring unfamiliar economic concepts: the case of prepaid card adoption," Working Papers 14-9, Federal Reserve Bank of Boston.
    13. Dubravka Ritter, 2012. "Do we still need the Equal Credit Opportunity Act?," Payment Cards Center Discussion Paper 12-03, Federal Reserve Bank of Philadelphia.
    14. Briglevics, Tamas & Schuh, Scott, 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.
    15. 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.
    16. Stavins, Joanna, 2016. "The effect of demographics on payment behavior: panel data with sample selection," Working Papers 16-5, Federal Reserve Bank of Boston.
    17. Hitczenko, Marcin, 2015. "Estimating population means in the 2012 Survey of Consumer Payment Choice," Research Data Report 15-2, Federal Reserve Bank of Boston.
    18. Greene, Claire & Stavins, Joanna, 2016. "Did the Target data breach change consumer assessments of payment card security?," Research Data Report 16-1, Federal Reserve Bank of Boston.

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    Keywords

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

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