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2010 Payments Study: Examining the nation’s payments usage

February 2010

On January 20, 2010, the Federal Reserve Banks announced (PDF) plans to conduct another series of studies to determine the current volume and composition of check and electronic payments in the U.S. These studies will build on information gained from similar studies conducted by the Reserve Banks in 2001, 2004 and 2007. “The Fed’s 2010 Payments Study is a continuation of an ongoing effort by the Federal Reserve System to measure trends in noncash payments in the United States,” said Richard Oliver, executive vice president, Federal Reserve Bank of Atlanta.

The 2010 Federal Reserve Payments Study consists of three research efforts commissioned to estimate the annual number, dollar value and composition of retail noncash payments in the U.S. Together, the studies will provide aggregate estimates and current trends in the use of noncash payment instruments by U.S. consumers and businesses.

Previous studies have revealed significant changes in the U.S. payments system over time, including a continuing decline in the use of checks and growing use of electronic payments, such as automated clearing house (ACH), electronic banking transactions, credit cards, debit cards and stored value cards. Preliminary results should be released by late 2010. More information will become available online at FRBservices.org and in future issues of FedFocus.

Previous study results

In 2001, the Federal Reserve undertook the first statistically valid study of retail payments volume and value in 22 years via the Retail Payments Research Project (PDF). This watershed study revealed that there were 42.5 billion checks written annually in the U.S. — 30 percent less than the industry estimated at the time. It also reported substantial gains by debit cards, and continued growth in ACH and credit card usage.

The 2004 Federal Reserve Payments Study (PDF) revealed that check volume had fallen to 36.5 billion items annually, and that electronic payments exceeded check payments for the first time in history, fueled by rampant growth in debit card usage. These findings provided valuable information on the nation’s payments system for financial institutions and industry participants to use. 

The 2007 Federal Reserve Payments Study (PDF) showed that more than two-thirds of all U.S. noncash payments were made electronically. From 2003 to 2006, the period covered by the study, all types of electronic payments grew while check payments decreased. The Federal Reserve’s 2004 study found that the number of electronic payments and check payments were roughly equal in 2003. The 2007 study underscored the continued importance of identifying innovative methods for moving from paper to electronic check alternatives.

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