2005/2006 Study of Consumer Payment Preferences

The payment systems landscape is changing radically as consumers embrace new forms of payment—do you know how, and why? More importantly, are you aware of how this shift in consumer buying and bill paying will affect your bank?

Bank CEOs, CFOs, senior management and anyone involved with planning and implementing payment systems will find the answers to these and other questions in the newly released 2005/2006 Study of Consumer Payment Preferences. The fourth in a series of biennial studies that track consumers' payment habits, preferences and migration from paper to electronic payments, this comprehensive report profiles in-store, Internet and bill payment behavior among consumers, taking a hard look at how and why consumers use various payment methods.

This syndicated consumer research study was conducted in conjunction with Dove Consulting, a division of Hitachi Consulting. The study was sponsored by ACI Worldwide, Citigroup, and The Clearing House.

Among the study's thought-provoking findings:

  • Each month consumers make 58 individual payment choices for their in-store and Internet purchases and bill payments.
  • Increasingly, consumers are choosing electronic payment methods—cash and checks now account for only 45 percent of consumers' monthly payments, down from 57 percent in 2001 and 49 percent in 2003.
  • Checks now account for less than half of consumers' monthly bill payments—only 49 percent—down from 72 percent in 2001, and 60 percent in 2003.
  • Online bill pay is experiencing a huge increase in consumer usage—from 8 percent of monthly bills paid in 2001 to 24 percent in 2005.
  • Consumers now make one-third of their in-store purchases with a debit card—up from 21 percent six years ago.
  • Gift card use has seen the most dramatic increase. The percentage of customers who indicate using gift/prepaid cards to make at least one purchase per month in stores has increased from 12 percent in 2003 to 32 percent in 2005.

The study includes 239 easy-to-read charts that examine consumers' varied educational, ethnic and regional backgrounds, and track developments and changes in payment methods and usage by age and gender. In addition, nearly 200 data tables provide detailed information on why and how consumers choose to pay for products, services—even charitable donations.

As financial institutions and the marketplace are looking even more closely at consumer spending habits and methods, the 2005/2006 Study of Consumer Payment Preferences provides the hard information your bank needs to stay ahead of the competition and on course for bottom-line gains.

Release date: October 2005

Click here for a copy of the table of contents (PDF format).
Click here for a copy of the list of figures (PDF format).
Click here for a copy of the index of data tables (PDF format).

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