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.
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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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