Noncash payments in the United States rose at a compounded annual rate of 4.6 percent since 2006, according to the Federal Reserve System.
The organization this month published its fourth report in a series of triennial examinations regarding trends in noncash payments in the United States. Here are some of the highlights of the Fed’s findings:
– The estimated number of noncash payments totaled 108.9 billion in 2009, with a value of $72.3 trillion.
– More than three-quarters of all noncash payments are now made electronically, and nearly all interbank checks are now cleared electronically.
– The transition rate from paper to electronic payment methods is rapidly rising due to the presence of debit and prepaid cards, as well as online bill payment.
– Debit card usage is maintaining double-digit growth annually. Though the study did not examine cash usage, one likely explanation for this trend is that debit cards may be replacing cash payments.
Exhibit 1: Number of Noncash Payments
| 2006 | 2009 | CAGR* | |
| Total (billions) | 95.2 | 108.9 | 4.6% |
| Checks (paid) | 30.5 | 24.4 | -7.2% |
| ACH | 14.6 | 19.1 | 9.3% |
| Credit card | 21.7 | 21.6 | -0.2% |
| Debit card | 25.0 | 37.9 | 14.8% |
| Prepaid card | 3.3 | 6.0 | 21.5% |
Figures may not add due to rounding.
*CAGR is compound annual growth rate.
Click here to view the complete 2010 Federal Reserve Payments Study.
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