How did we make payments 3, 6 and 11 years ago?
Remember when checks were popular? The progress made in payment-making from 11 years ago until now is astonishing. Over the years, trends in non cash payment methods have been tracked. The use of debit, credit, and prepaid cards, checks, ACH, and other payment methods were analyzed. Here's what was discovered about the way we make payments in the U.S.!
3 years ago: High electronic payment use. Fraud becomes a problem.
- In 2012, 1 in 6 checks were deposited by mobile check capture
- Payments using cards is significantly higher between 2009 and 2012
- Credit cards return to growth between 2009 and 2012
- The number of unauthorized transactions by third party fraud in 2012 was 31.1 million, and a value of $6.1 billion
- The number of unauthorized transactions in 2012 was highest among general-purpose card payments as compared to ACH and check payments
- Fraud rates were lowest for general-purpose debit card PIN and ATM transactions
- The number of checks paid declined to 18.3 billion in 2012, which is less than half the number of checks paid in 2003
- 17 percent of checks were deposited as an image in 2012, and 13 percent were deposited as an image in 2009
6 years ago: The migration from paper to electronic.
- Electronic payments made up over three quarters of all non cash payments by number, and more than half by value in 2009
- Over half of all non cash payments in 2009 were made with debit, credit, and prepaid cards
- Credit cards were the only electronic payment to decline
- 21.6 billion credit card payments were made in 2009, 151 million fewer than in 2006
- Debit cards continued double-digit growth from 2006 to 2009 and represented 34.8 percent of non cash payments in 2009
- Prepaid cards grew by 21.5 percent from 2006 to 2009
11 years ago: Rapid change makes room for incoming innovation.
- The number of non cash payments increased at an annual rate of 3.8 percent since 2008
- The number of checks paid decreased by 5.2 billion between 2000 and 2003, an annual decline of 4.3 percent
- Electronic payments grew rapidly
- The number of credit card transactions grew from 15.6 billion in 2000 to 19.0 billion in 2003, an annual growth of 6.7 percent.
- Most non cash payments in the U.S. were made by electronic payments in 2003, but most non cash payments were made by check in 2000.
The way the U.S. makes payments has come a long way since the year 2000, when the majority of non cash payments were made by check. Now, it seems that the times we write checks are few and far between. With new services like mobile check deposit, and debit cards linked directly to checking accounts, banking is evolving fast, is becoming more convenient, and is going places we never would have imagined!
Furthermore, the way we pay is still changing. New payments, including mobile payments, and EMV chips in debit cards, are becoming more popular while helping to increase security. These new payment methods will hopefully diminish some of the worry and skepticism surrounding mobile and electronic platforms.
What do you see in the future for your favorite payment method? Do you prefer sticking to cash?
Share your thoughts :)
Source: The Federal Reserve Payments Study