Payment Instrument Utilization for Specific Transaction Types
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The document analyzes the trends in payment method utilization at New Mexico State University from 2007 to 2010, highlighting a decline in check usage across various transactions while exploring the prevalence of other payment methods like cash, credit, and direct payments. Specific transaction types reveal differing patterns in payment preferences, particularly in sectors such as housing, groceries, and healthcare. The findings point to an overall shift towards more direct payment options and electronic billing in response to economic factors.
Payment Instrument Utilization for Specific Transaction Types
- 1. New Mexico State University Payment Instrument Utilization for DISCUSSION • Transaction-specific payments show Specific Transaction Types different prevalence and trends than overall use - E.g.: While check use for the “use for any” M. Fahzy Abdul-Rahman, Ph.D., M.P.H. Figure 2. House Payment Cash transaction was consistent and very high, we 70% Check Figure 8. Apparel Cash 60% Credit 50% Check found a decreasing trend of check use in almost ABSTRACT 50% Debit 40% Credit all of the transactions studied. Figure 1. Use for Any Transaction Cash 40% Direct 30% Debit • $ Price of transaction matter Using Consumer Finance Monthly data from 2007 to 100% Check 30% E-Bill Direct - Expensive: checks and credit cards Other P 20% E-Bill 2010, we look into six payment methods 90% Credit Card 20% - Less expensive: cash Others Other P (cash, check, credit card, debit card, direct payment, e- 80% Debit Card 10% N/A 10% Others • “Not applicable” & “Other (Payment bill) used for 16 different types of transaction in the 70% Direct Payment 0% Home Own 0% N/A Method)” categories increased U.S., such as housing, grocery, dining, health, and car E-Bill 2007 2008 2009 2010 2007 2008 2009 2010 - Increased for housing, household 60% expenses. Transaction-specific payment method usage Money Order Figure 3. Utilities Cash Figure 9. Personal Care Cash goods, dining, car payment, and entertainment would give a better understanding of changes in 50% 70% 70% Other, Listed Check Check - Due to economic crises payment method use than those based on mere “Did 40% 60% 60% Other, Unlisted Credit Credit - “Other (Unlisted)” category increased for housing you use this payment method for any transaction?” 50% Debit 50% 30% N/A Debit payments, grocery, doctor and health question. For instance, check usages in the last month 40% Direct 40% 20% Direct services, and medicine transactions Smart Card 30% 30% showed very high overall (i.e. use for any transaction) E-Bill E-Bill • Debit and credit card use tended to be 10% Pay Day 20% 20% use in all the four years compared but actually showed a Other P Other P 0% HELOC 10% Others 10% similar for many transactions decreasing use trend when examined by specific Others transactions. Homeowner 0% N/A 0% N/A • Increasing use of direct payments and e-bill 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 RESULTS Cash Figure 10. Car Payment Figure 14. Medicine Cash Figure 4. Household Goods Cash 50% Check 40% 70% Check Check Table 1. Percent of Respondents Who Selected Certain Payment Methods for Certain Transactions, 2010 (n = 2,544) 35% 60% 40% Credit Credit Credit 30% Debit Debit 50% Debit 25% 30% 40% Direct 20% Direct Direct Transaction (%) Credit Debit Direct Other, Other, Not E-Bill 30% E-Bill 20% E-Bill Cash Check E-Bill 15% Other P card card payment Listed Unlisted applicable 10% Other P 20% Other P 10% 10% Others 5% Others Others 0% N/A Use for any purpose 95.9 88.2 67.3 38.6 35.1 52.8 11.3 34.9 (N/A) 0% N/A 0% N/A 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 Figure 5. Grocery Cash Figure 11. Personal Care Cash Figure 15. Entertainment Cash Mortgage, or rent 6.8 37.9 0.6 1.1 13.0 13.3 3.5 0.2 28.2 50% Check 50% Check 70% Check 3.3 28.7 0.4 0.7 16.2 16.3 0.5 0.2 37.5 60% Homeowner 40% Credit 40% Credit Credit Debit Debit 50% Debit Utilities 11.3 52.0 2.6 3.8 13.1 21.2 1.9 0.3 2.2 30% 30% Direct Direct 40% Direct HH furnishings and eq. 23.9 28.4 16.8 9.4 1.7 4.4 0.1 0.1 25.5 20% E-Bill 20% E-Bill 30% E-Bill Other P Groceries 39.4 20.1 21.0 27.0 0.4 1.5 0.0 3.5 0.9 Other P Others 20% Other P 10% 10% Dining out 45.9 6.0 26.2 21.8 0.2 0.3 0.0 0.4 11.8 Others N/A 10% Others 0% N/A 0% Gas 0% Cig. & alcoholic beverage 28.8 4.1 13.3 11.8 0.3 0.2 0.1 0.5 47.2 N/A 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 Apparel 37.4 12.0 35.3 23.7 0.4 0.2 0.1 0.7 5.3 Figure 6. Dining Cash Figure 12. Car Repair Cash 60% 35% Figure 16. Taxes Cash Personal Care 59.4 13.9 10.0 14.5 0.1 0.0 0.0 1.0 9.6 Check Check 60% 50% 30% Check Car payment 4.9 14.4 1.1 2.0 8.2 7.7 0.6 0.5 63.6 Credit Credit 25% 50% Credit 40% Debit Debit Gasoline 34.1 6.7 31.4 24.2 0.6 0.5 0.0 0.3 8.5 Direct 20% Direct 40% Debit 30% Direct Car repair, services 28.1 21.2 28.4 16.4 0.5 0.2 0.0 1.1 14.3 E-Bill 15% E-Bill 30% 20% 10% E-Bill Medical services 21.1 32.6 16.6 13.7 1.2 1.4 0.2 25.3 5.4 Other P Other P 20% 10% Other P Others 5% Others 10% Medicine 36.4 15.9 22.3 20.8 0.3 0.3 0.0 11.1 5.9 0% N/A 0% N/A Others 0% N/A Entertainment 50.3 5.2 17.5 16.8 0.1 0.7 0.0 0.9 18.2 2007 2008 2009 2010 2007 2008 2009 2010 2007 2008 2009 2010 Income and property tax 12.7 49.2 2.1 3.7 7.5 4.7 0.3 6.5 19.6 Figure 13. Doctor & Figure 7. Cigarettes and Figure 17. Insurance Insurance premiums 13.0 48.5 5.0 4.7 16.4 8.9 1.5 2.0 7.2 Health Services Cash Alcoholic Beverages Cash 60% Check 11.6 9.2 37.0 15.0 34.6 25.5 7.6 1.1 (N/A) 50% Use for any other purpose Cash Check 50% Credit 50% Credit Check 40% 40% Debit 40% Credit Debit Direct 30% 30% Debit Direct E-Bill 30% 20% Direct 20% E-Bill Other P 20% E-Bill Other P 10% Others 10% Other P Others 0% 10% N/A Others 0% N/A 2007 2008 2009 2010 0% N/A 2007 2008 2009 2010 2007 2008 2009 2010