The Federal Reserve Payments Study 2016, the sixth in a series of triennial studies to estimate aggregate trends in non-cash payments in the United States, contains an early look at the use of core payment systems.
One finding: checks continue to decline but slower than shown in previous recent studies.
Estimates presented in this initial data release come from survey data gathered from the depository and financial institutions, general-purpose card networks, and processors, and issuers of various private-label payment instruments.
Payments included in the study were initiated from U.S. accounts and typically involved the use of debit cards (including prepaid and non-prepaid cards), credit cards, electronic credit and debit transfers using the automated clearinghouse system, or checks.
Prepaid debit and credit card payments include payments made with both general-purpose cards issued by depository institutions and processed over card networks and private-label cards issued by merchants and processed over proprietary networks. Prepaid debit card payments also include electronic benefit transfer (EBT) payments used to disburse certain federal and state government benefits.
The Federal Reserve Payments Study 2016 key findings:
- Estimated U.S. noncash payments, including debit cards, credit cards, ACH, and check payments, totaled over 144 billion with a value of almost $178 trillion in 2015. That is up almost 21 billion payments or about $17 trillion since 2012. Total non-cash payments increased at an annual rate of 5.3% by number or 3.4% by value from 2012 to 2015.
- The number of debit card payments (including payments with prepaid and non-prepaid cards) grew to 69.5 billion in 2015 with a value of $2.56 trillion, up 13.0 billion or $0.46 trillion since 2012. This was the largest increase in the number of payments among the payment types considered. Debit card payments grew at an annual rate of 7.1% by number or 6.8% by value from 2012 to 2015 with most of the growth occurring in non-prepaid debit card payments.
- The number of credit card payments reached 33.8 billion in 2015 with a value of $3.16 trillion, up 6.9 billion or $0.61 trillion since 2012. Credit card payments grew at an annual rate of 8.0% by number or 7.4% by value from 2012 to 2015, the largest growth rates among the payment types considered.
- Estimated total ACH payments grew to 23.5 billion in 2015 with a value of $145.30 trillion, up 3.1 billion by number or $16.29 trillion since 2012. Estimated Total ACH payments grew at an annual rate of 4.9% by number or 4.0% by value from 2012 to 2015.
- The number of check payments fell to 17.3 billion with a value of $26.83 trillion, down 2.5 billion or $0.38 trillion since 2012. Check payments fell at an annual rate of 4.4% by number or 0.5% by value from 2012 to 2015. The decline of checks over the period was slower than declines in previously documented periods since 2003.
• Payments with general-purpose cards using embedded microchips, which improve the security of in-person payments to help prevent fraud, have grown by 230% per year since 2012. But payments with the chip-based cards amounted to only about 2% share of total in-person general-purpose card payments in 2015, reflecting the early stages of a broad industry roll out.
Fed alludes to behavior and usage changes in payments over the past year, these changes could affect your business. Schedule a call with CCG Catalyst to discuss the strategy for using payments with your institution. Let’s talk!