U. S. Consumer Cash Use, 2012 and 2015: An Introduction to the Diary of Consumer Payment Choice

64 Pages Posted: 5 Dec 2017 Last revised: 6 Dec 2017

See all articles by Claire Greene

Claire Greene

Federal Reserve Banks - Federal Reserve Bank of Boston

Shaun O’Brien

Federal Reserve Banks - Federal Reserve Bank of San Francisco

Scott D. Schuh

Federal Reserve Bank of Boston - Research Department

Date Written: 2017-10-25

Abstract

U.S. consumer cash payments averaged 26 percent of all U.S. consumer payments by number (volume share) from 2008 to 2015, according to the Survey of Consumer Payment Choice (SCPC), and were essentially unchanged between 2012 and 2015. New estimates from the Diary of Consumer Payment Choice (DCPC) show that the volume share of consumer cash payments is higher than estimated in the SCPC and suggest that the cash volume share was 8 percentage points lower in 2015 than in 2012. The DCPC most likely does not provide an accurate estimate of the actual change in the cash volume share, however, due to changes in survey methodology. Counterfactual simulations controlling for survey and economic changes suggest the cash volume share declined approximately 2 to 5 percentage points due to changes in consumer preferences between 2012 and 2015.

Keywords: Cash, money, payments, consumer behavior, Diary of Consumer Payment Choice, Survey of Consumer Payment Choice

JEL Classification: D12, D14, E42

Suggested Citation

Greene, Claire and O’Brien, Shaun and Schuh, Scott, U. S. Consumer Cash Use, 2012 and 2015: An Introduction to the Diary of Consumer Payment Choice (2017-10-25). Research Data Reports Paper No. 17-6. Available at SSRN: https://ssrn.com/abstract=3082774

Claire Greene (Contact Author)

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

600 Atlantic Avenue
Boston, MA 02210
United States

Shaun O’Brien

Federal Reserve Banks - Federal Reserve Bank of San Francisco ( email )

101 Market Street
San Francisco, CA 94105
United States

Scott Schuh

Federal Reserve Bank of Boston - Research Department ( email )

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

Register to save articles to
your library

Register

Paper statistics

Downloads
26
Abstract Views
223
PlumX Metrics