Payments Evolution from Paper to Electronic: Bill Payments and Purchases

Consumer payments in the United States gradually have been shifting away from paper checks for past several years. Cash use has declined as well, although at a much slower pace. As number of check decreased, those replaced with electronic and card payments. However, transition to bills not proceeded same way purchases. Using detailed consumer survey panel data collected over nine years, we track respondents time find that consumers who reduced their or cash bill given year were more likely reduce purchases following year; but reduction was followed by fewer less The results suggest change payment behavior may be precursor changes general. These help predict instrument various transaction types new methods, such faster central bank digital currency, become available future.