Federal bankers are sharing a cache of data confirming what most consumers have experienced for some time: They cut back on their use of credit cards and relied more on cash for routine purchases and bill payments during the depths of the recession.
The Federal Reserve Bank of Boston says that, along with the weak economy, new government policies and banking business practices, along with an environment of low interest rates, may also have influenced consumer payment preferences during that time period.
The average consumer made 64.5 payments per month in 2009, down slightly from the 67.4 monthly payments noted in the 2008 survey. Debit cards were still the most commonly used instrument at 19 payments per month, with cash second at 18.4. But the gap between the two narrowed considerably.
In 2008, consumers reported 21.2 debit card transactions per month and 14.5 cash transactions. The average consumer also kept more cash on hand in 2009: $291 per person compared with $230 in the 2008 survey.
Results from the 2010 survey will be available later this year, the Fed says.
The latest survey also shows that 30 percent of consumers had an account with a nonbank online payment service provider.
Payments made through these accounts during the year are included in the results but are not identified separately.
Another emerging factor is the use of the mobile phone; 8.9 percent of consumers had used their cell phones for routine banking tasks such as checking balances and receiving alerts. Three percent of consumers had made mobile payments, primarily by sending an SMS text message, although one percent indicated they had made some type of contactless mobile payment.
