CARPINTERIA, Calif.–New data that measures the 11 payment instruments consumers use to make Personal Consumption Expenditures (PCE) as calculated by the U.S. Bureau of Economic Analysis show the purchase volume component of PCE was $9.934 trillion in 2016.
To spend that nearly $10 trillion, consumers made some 185.22 billion transactions during 2016, according to The Nilson Report's Consumer Payment Systems Model.
"From among the 11 payment instruments available to consumers in the U.S., debit cards were used most frequently, almost 20 billion times more than cash, which was the second most popular instrument," said David Robertson, publisher of The Nilson Report.
Purchases of goods and services on the four card-based methods of payment (credit, debit, prepaid, and electronic benefits transfer) generated $6.036 trillion or 60.76% of all consumer payment systems volume in 2016, The Nilson Report said. Credit cards accounted for $3.153 trillion or 31.74% of volume. Debit cards accounted for $2.561 trillion or 25.78% of volume.
Transactions on card-based methods of payment totaled 111.66 billion, 60.28% of all transactions, according to the Nilson Report.
In 2016, the paper-based methods of cash, checks, money orders, travelers’ checks, and official checks generated $2.471 trillion or 24.87% of all consumer payment systems volume. Transactions totaled 59.53 billion or 32.14% of all payment methods, The Nilson Report added.