WASHINGTON, D.C. -- Electronic payments will overtake cash and checks as Americans' preferred method of payment, according to a nationwide consumer payment preferences study by the American Bankers Association and Boston-based Dove Consulting.
The study found that one of every two in-store purchases is made with electronic payment instruments such as debit cards, credit cards, prepaid cards and direct payment. In addition, 51 percent of consumers now pay some bills online or through direct payment methods.
Yet paper-based payments will not go away anytime soon. Beth Costa, a Dove Consulting director and author of the study said, "Entrenched consumer habits, pricing mechanisms, trial experiences and service features will continue to fuel a complex adoption cycle for payment options."
Cash remains the most frequently used payment method at physical points-of-purchase, accounting for 33 percent of respondents' self-reported transactions. Debit, both PIN-based and signature-based, together represent 26 percent of transactions.
Over the next two years, electronic forms of in-store payment are expected to see significant increases. According to the study, 22 percent to 27 percent of respondents expect to increase their usage of debit cards, while only six percent expect to decrease debit usage.
