Cash is used for a Quarter of Transactions
The Federal Reserve Bank of Atlanta released in August 2019 its latest 2018 Survey of Consumer Payment Choice (SCPC), the 11th in a series of annual studies that aim to gain a comprehensive understanding of US consumers and their payment behaviour.
Here are some of the key findings.
- US consumers made 72 payments per month on average, including 50 purchases and person-to-person payments and 22 bill payments. The numbers have been consistent over the past decade.
- On average, 34% of payments were settled by debit card, 24% in cash and 23 by credit card. Since 2009, cash has declined from 30% of transactions to 24%.
- For the first time in 2018, debit cards replaced cash as the payment instrument used most frequently for in-person purchases.
- 93% of U.S. consumers had a bank account, maintaining the same level as in 2015, 2016 and 2017.
- Almost 50% had a non-bank payment account; PayPal is the most common.
- Half of consumers owned six or seven payment instruments.
- Cash was used by more consumers than any other payment instrument: 9 out of 10 consumers use cash at least once a year.
- Cash was used for about half of person-to person payments
Download the full pdf file here.