Payments Evolution from Paper to Electronic: Bill Payments and Purchases Payments Evolution from Paper to Electronic: Bill Payments and Purchases

Evidence shows that US consumers’ use of checks has declined sharply over time. They wrote 19.3 billion checks in 2000 and only 7.1 billion in 2018—a 63 percent drop—according to the Federal Reserve Payments Study. However, the literature contains little analysis of how changes in check use for bill payments and purchases relate to each other. This paper uses data from the Survey of Consumer Payment Choice to track individual respondents over a nine-year period and determine whether consumers tend to reduce their check use for bills and then reduce it for purchases, or vice versa.

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