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six payment methods (cash, check, credit card, debit card, direct payment, e-bill) used for 16 different types of transaction in the U.S., such as housing, grocery, dining, health, and car expenses. Transaction-specific payment method usage would give a better understanding of changes in payment method use than those based on mere “Did you use this payment method for any transaction?” question.
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2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%
70%CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%
CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%
CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%
CashCheckCreditDebitDirectE-BillOther POthersN/AGas
2007 2008 2009 20100%
10%20%30%40%50%60%70%
CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%
70%CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%
CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%50%
CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%
CashCheckCreditDebitDirectE-BillOther POthersN/A
New Mexico State University
2007 2008 2009 20100%
10%
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30%
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70%CashCheckCreditDebitDirectE-BillOther POthersN/AHome Own
2007 2008 2009 20100%
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100%CashCheckCredit CardDebit CardDirect PaymentE-BillMoney OrderOther, ListedOther, UnlistedN/ASmart CardPay DayHELOCHomeowner
ABSTRACT
Payment Instrument Utilization for Specific Transaction Types
M. Fahzy Abdul-Rahman, Ph.D., M.P.H.
RESULTS
Using Consumer Finance Monthly data from 2007 to 2010, we look into six payment methods (cash, check, credit card, debit card, direct payment, e-bill) used for 16 different types of transaction in the U.S., such as housing, grocery, dining, health, and car expenses. Transaction-specific payment method usage would give a better understanding of changes in payment method use than those based on mere “Did you use this payment method for any transaction?” question. For instance, check usages in the last month showed very high overall (i.e. use for any transaction) use in all the four years compared but actually showed a decreasing use trend when examined by specific transactions.
DISCUSSION
• Transaction-specific payments show different prevalence and trends than overall use
- E.g.: While check use for the “use for any” transaction was consistent and very high, we found a decreasing trend of check use in almost all of the transactions studied.
• $ Price of transaction matter- Expensive: checks and credit cards- Less expensive: cash• “Not applicable” & “Other (Payment
Method)” categories increased- Increased for housing, household goods, dining,
car payment, and entertainment- Due to economic crises
- “Other (Unlisted)” category increased for housing payments, grocery, doctor and health services, and medicine transactions
• Debit and credit card use tended to be similar for many transactions
• Increasing use of direct payments and e-bill
Table 1. Percent of Respondents Who Selected Certain Payment Methods for Certain Transactions, 2010 (n = 2,544)
Figure 1. Use for Any Transaction
Figure 2. House Payment
Figure 4. Household Goods
Figure 5. Grocery
Figure 6. Dining
Figure 8. Apparel
Figure 9. Personal Care
Figure 10. Car Payment
Figure 12. Car Repair
Figure 14. Medicine
Figure 15. Entertainment
Figure 16. Taxes
Figure 11. Personal Care
Transaction (%) Cash Check Credit card
Debit card
Direct payment E-Bill Other,
ListedOther,
UnlistedNot
applicable
Use for any purpose 95.9 88.2 67.3 38.6 35.1 52.8 11.3 34.9 (N/A)
Mortgage, or rent 6.8 37.9 0.6 1.1 13.0 13.3 3.5 0.2 28.2 Homeowner 3.3 28.7 0.4 0.7 16.2 16.3 0.5 0.2 37.5Utilities 11.3 52.0 2.6 3.8 13.1 21.2 1.9 0.3 2.2HH furnishings and eq. 23.9 28.4 16.8 9.4 1.7 4.4 0.1 0.1 25.5Groceries 39.4 20.1 21.0 27.0 0.4 1.5 0.0 3.5 0.9Dining out 45.9 6.0 26.2 21.8 0.2 0.3 0.0 0.4 11.8Cig. & alcoholic beverage 28.8 4.1 13.3 11.8 0.3 0.2 0.1 0.5 47.2Apparel 37.4 12.0 35.3 23.7 0.4 0.2 0.1 0.7 5.3Personal Care 59.4 13.9 10.0 14.5 0.1 0.0 0.0 1.0 9.6Car payment 4.9 14.4 1.1 2.0 8.2 7.7 0.6 0.5 63.6Gasoline 34.1 6.7 31.4 24.2 0.6 0.5 0.0 0.3 8.5Car repair, services 28.1 21.2 28.4 16.4 0.5 0.2 0.0 1.1 14.3Medical services 21.1 32.6 16.6 13.7 1.2 1.4 0.2 25.3 5.4Medicine 36.4 15.9 22.3 20.8 0.3 0.3 0.0 11.1 5.9Entertainment 50.3 5.2 17.5 16.8 0.1 0.7 0.0 0.9 18.2Income and property tax 12.7 49.2 2.1 3.7 7.5 4.7 0.3 6.5 19.6Insurance premiums 13.0 48.5 5.0 4.7 16.4 8.9 1.5 2.0 7.2Use for any other purpose 11.6 9.2 37.0 15.0 34.6 25.5 7.6 1.1 (N/A)
2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%
70%CashCheckCreditDebitDirectE-BillOther POthersN/A
Figure 3. Utilities
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%50%
CashCheckCreditDebitDirectE-BillOther POthersN/A
Figure 7. Cigarettes and Alcoholic Beverages
2007 2008 2009 20100%
10%
20%
30%
40%
50%
60%CashCheckCreditDebitDirectE-BillOther POthersN/A
2007 2008 2009 20100%5%
10%15%20%25%30%35%40%45%
CashCheckCreditDebitDirectE-BillOther POthersN/A
Figure 13. Doctor & Health Services Figure 17. Insurance