The 2008 Survey of Consumer Payment Choice

71 Pages Posted: 28 Feb 2010 Last revised: 5 May 2010

See all articles by Kevin Foster

Kevin Foster

Federal Reserve Banks - Federal Reserve Bank of Boston

Erik Meijer

University of Southern California; RAND Corporation

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Michael A. Zabek

Board of Governors of the Federal Reserve System

Date Written: April 1, 2010

Abstract

This paper presents the 2008 version of the Survey of Consumer Payment Choice (SCPC), a nationally representative survey developed by the Consumer Payments Research Center of the Federal Reserve Bank of Boston and implemented by the RAND Corporation with its American Life Panel. The survey fills a gap in knowledge about the role of consumers in the transformation of payments from paper to electronic by providing a broad-based assessment of U.S. consumers' adoption and use of nine payment instruments, including cash. The average consumer has 5.1 of the nine instruments, and uses 4.2 in a typical month. Consumers make 53 percent of their monthly payments with a payment card (credit, debit, and prepaid). More consumers now have debit cards than credit cards, and consumers use debit cards more often than cash, credit cards, or checks individually. Cash, checks, and other paper instruments are still popular and account for 37 percent of consumer payments. Most consumers have used newer electronic payments, such as online banking bill payment, but they only account for 10 percent of consumer payments. Security and ease of use are the characteristics of payment instruments that consumers rate as the most important.

JEL Classification: D12, D14, E42

Suggested Citation

Foster, Kevin and Meijer, Erik and Schuh, Scott and Zabek, Michael Alexander, The 2008 Survey of Consumer Payment Choice (April 1, 2010). FRB of Boston Public Policy Discussion Paper No. 09-10. Available at SSRN: https://ssrn.com/abstract=1559959 or http://dx.doi.org/10.2139/ssrn.1559959

Kevin Foster

Federal Reserve Banks - Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Erik Meijer

University of Southern California ( email )

635 Downey Way
Los Angeles, CA 90089-3332
United States

RAND Corporation ( email )

1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
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Scott Schuh (Contact Author)

Federal Reserve Bank of Boston - Research Department ( email )

600 Atlantic Ave.
Boston, MA 02210
United States
617-973-3941 (Phone)
617-619-7541 (Fax)

Michael Alexander Zabek

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

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