Three-fourths of all noncash payments are now electronic, according to a Federal Reserve payments study released in December.
The number of credit card, debit card, and other electronic payments increased 9.3 percent from 2006 to 2009, the years covered by the study. The value of these payments increased 6 percent per year, from 45.1 percent of noncash payments in 2006 to 56.3 percent in 2009. Meanwhile, check payments continued to decline, falling from 32 percent to just 22 percent of noncash payments.
"The results of the study clearly underscore this nation's efforts to move toward a more efficient electronic clearing system for all types of retail payments," said Atlanta Fed executive vice president Richard Oliver in a written statement. "It is also likely that the results reflect changing consumer behavior during difficult economic times."
For instance, credit card payments were the only electronic payment instrument to decline from 2006 to 2009, by 0.2 percent a year. The study noted that this decline may not be a permanent change in financial behavior. On the other hand, debit cards experienced double-digit growth, surpassing checks to become the most used noncash payment option, representing slightly less than 35 percent of noncash payments.
The recently released report summarizes the finding of three separate research efforts that make up the study. The Fed will release the full results in early 2011. Read the summary report here.
