The U.S. Federal Reserve released the findings from its 2022 payments study, which shows how consumers and businesses chose to make noncash payments.
This triennial study shows a substantial increase in the use of noncash payments, which would include checks, different types of cards, and the automated clearinghouse (ACH). Specifically, noncash payments increased at a rate of 9.5 percent per year from 2018 through 2021, reaching $128.51 trillion in 2021. This rate of increase was more than twice the rate of increase in the previous three-year period – from 2015 to 2018. It is also three times the rate of increase from 2000 to 2018.
The increase in the value of ACH transfers accounted for more than 90 percent of the rise in noncash payments over the last three years. ACH transfers, which surpassed checks in 2009, have grown to $91.85 trillion, 72 percent of core noncash payments value in 2021.
In addition, the value of card payments grew faster from 2018 to 2021 than in any previous measurement period, rising 10 percent per year since 2018. Overall, the value of card payments reached $9.43 trillion in 2021, accounting for approximately 7 percent of noncash payments value in that year. Prepaid debit card payments grew by 20.6 percent per year in this recent period, reaching $0.61 trillion in 2021.
Among other findings, the study also revealed that the number of ATM cash withdrawals dropped declined at a rate of 10.1 percent per year, falling to 3.7 billion in 2021.
In addition, the number of core noncash payments grew by 5.6 percent per year from 2018 – 2021. The increase in the number of card payments accounted for more than 84 percent of the growth in the number of noncash payments over that period.
The Federal Reserve Payments Study is a collaborative effort of the Federal Reserve Bank of Atlanta and the Federal Reserve Board.