Direct Deposit Sees Vast Jump According to SWACHA Survey
Dallas, TX, May 11, 2012 --(PR.com)-- Consumers continue to reduce the risk of lost or stolen checks by increasingly using Direct Deposit via ACH according to a recent survey from Dallas-based SWACHA, one of the largest not-for-profit regional electronic payment associations in the country. The results of the 2011 Consumer Insights Survey showed that 85 percent of those surveyed are currently using their employer’s Direct Deposit option, compared to 66 percent in 2009.
Today marks the beginning of Direct Deposit/Direct Payment Month, where financial institutions and businesses across the country promote the use of Direct Deposit and Direct Payment, and this trend shows a significant increase of its adoption rate.
“Our world is becoming increasingly electronic, and this has been led largely by the banking industry through the use of Direct Deposit. The significant jump in popularity of Direct Deposit during the last three years is a step in the right direction for both financial institutions and consumers,” said Dennis Simmons, AAP, president and CEO of SWACHA. “Direct Deposit is fast, secure, cost efficient, and environmentally friendly, so we were pleased to see that a vast majority of consumers take advantage of these benefits.”
In addition to the hike in Direct Deposit usage among consumers, the trend is also gaining traction among employers with 90 percent offering Direct Deposit as an option to their employees, up from 84 percent in 2009. Currently only 5 percent of consumers have the option of using Direct Deposit, but elect not to do so.
Split Deposit
Another trend which is starting to spread is Split Deposit, where consumers automatically move a portion of each paycheck into a savings account using Direct Deposit. According to SWACHA’s survey, 32 percent of consumers are currently using Split Deposit, and this group is saving money in staggering amounts with 31 percent of Split Deposit users saving at least 25 percent of each paycheck.
Direct Payment
The number of consumers who automatically pay bills through Direct Payment is also increasing significantly, with 87 percent of consumers reporting they pay at least one bill with Direct Payment. Since 2009, the percentage of people who pay their bills through Direct Payment increased in every billing category, with mortgage payments (9 percent) and insurance bills (10 percent) seeing the largest growth:
About the Survey
SWACHA's online survey of 600 Texas residents was conducted in August 2011 by Decision Analyst with a confidence interval of 95 percent and a corresponding margin of error of +/- 4 percent. Only those respondents who identified themselves as the person responsible for paying household bills were permitted to complete the survey.
About SWACHA
SWACHA-The Electronic Payments Resource®, is one of the largest not-for-profit regional payments associations in the country with approximately 1,100 members across the Southwest. SWACHA is the resource of choice for financial institutions and corporations in the areas of education, training, payments system risks and knowledge about electronic payments. For more information visit:
Web: www.swacha.org
Facebook: www.facebook.com/bringingpaymentstogether
Twitter: @SWACHA
Editor’s Note: This is a part of a series of releases based on SWACHA’s 2011 Consumer Insights Survey.
Today marks the beginning of Direct Deposit/Direct Payment Month, where financial institutions and businesses across the country promote the use of Direct Deposit and Direct Payment, and this trend shows a significant increase of its adoption rate.
“Our world is becoming increasingly electronic, and this has been led largely by the banking industry through the use of Direct Deposit. The significant jump in popularity of Direct Deposit during the last three years is a step in the right direction for both financial institutions and consumers,” said Dennis Simmons, AAP, president and CEO of SWACHA. “Direct Deposit is fast, secure, cost efficient, and environmentally friendly, so we were pleased to see that a vast majority of consumers take advantage of these benefits.”
In addition to the hike in Direct Deposit usage among consumers, the trend is also gaining traction among employers with 90 percent offering Direct Deposit as an option to their employees, up from 84 percent in 2009. Currently only 5 percent of consumers have the option of using Direct Deposit, but elect not to do so.
Split Deposit
Another trend which is starting to spread is Split Deposit, where consumers automatically move a portion of each paycheck into a savings account using Direct Deposit. According to SWACHA’s survey, 32 percent of consumers are currently using Split Deposit, and this group is saving money in staggering amounts with 31 percent of Split Deposit users saving at least 25 percent of each paycheck.
Direct Payment
The number of consumers who automatically pay bills through Direct Payment is also increasing significantly, with 87 percent of consumers reporting they pay at least one bill with Direct Payment. Since 2009, the percentage of people who pay their bills through Direct Payment increased in every billing category, with mortgage payments (9 percent) and insurance bills (10 percent) seeing the largest growth:
About the Survey
SWACHA's online survey of 600 Texas residents was conducted in August 2011 by Decision Analyst with a confidence interval of 95 percent and a corresponding margin of error of +/- 4 percent. Only those respondents who identified themselves as the person responsible for paying household bills were permitted to complete the survey.
About SWACHA
SWACHA-The Electronic Payments Resource®, is one of the largest not-for-profit regional payments associations in the country with approximately 1,100 members across the Southwest. SWACHA is the resource of choice for financial institutions and corporations in the areas of education, training, payments system risks and knowledge about electronic payments. For more information visit:
Web: www.swacha.org
Facebook: www.facebook.com/bringingpaymentstogether
Twitter: @SWACHA
Editor’s Note: This is a part of a series of releases based on SWACHA’s 2011 Consumer Insights Survey.
Contact
Granado Communications Group
Chris Martin
214-599-8467
www.swacha.org
Chris Martin
214-599-8467
www.swacha.org
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