Fed: CNP Payments Account for Growing Share of Growing Pie

Card-not-present payments accounted for 19 percent of all card payments in the U.S. in 2015, up from around 15 percent in 2012, according to the Federal Reserve. Every three years, the Federal Reserve conducts a study of all non-cash payments in the U.S. and card payments led the way with nearly 20 billion more credit and debit card transactions in 2015 than in 2012. By number of transactions, debit cards ruled with nearly 70 billion transactions in 2015 compared to 34 billion credit card transactions. By value, however, credit cards led the way with more than $3.1 trillion spent compared to $2.5 trillion in debit card payments. ACH payments also grew, while check payments continued to decline.

The report called the growth of CNP’s share of card payments “modest,” but only because the raw number of in-person payments was significantly higher to begin with.

“The growth rate of remote general-purpose card payments was about 15.3 percent per year by number, more than double the growth rate of in-person payments,” the 2016 Federal Reserve Payments Study said. “Because the share of in-person payments only fell from 84 percent to 81 percent between 2012 and 2015, however, the total growth of in-person payments was 13.2 billion, over twice as much as the total growth of remote payments. Non-prepaid debit card payments led growth in both categories, with in-person card payments increasing nearly three times as much as remote payments.”