The use of cash for payments has declined over the past three years, as households turn to debit for low value payments.The latest Reserve Bank research into household payment trends shows a decline in the use of cash, from 40 to 30 per cent of payments, since 2007.Reserve Bank assistant governor Malcolm Edey said scheme debit and Eftpos have both picked up share. The RBA surveyed 1200 households in October and November last year, updating a study last undertaken in 2007.Cards are the dominant method for mid-value payments (amounts between $50 and $500), while Bpay and internet banking have become the norm for bill payments and high-value transactions.Around 90 per cent of respondents to the survey said they had access to the internet and, of those, 80 per cent reported having made an online purchase and almost 60 per cent an online transfer of funds. Sixty per cent of people with internet access said they paid their bills online.The most common reason given for not making payments online was fear of fraud.Speaking at yesterday's Cards & Payment conference in Sydney, Edey said the use of cheques was in rapid decline. Fewer than 40 per cent of consumers reported making a payment by cheque in the past year.The most common reason given for using a cheque was that people felt they had no alternative method for the type of payment they were making. Edey said: "That is significant, given that one of the issues being considered by the industry and in our current payment system review is the scope for phasing out cheque use."The survey also asked consumers why they chose a particular point of sale payment method. The main determinant was what consumers had with them at the time. The speed of the transaction was important, as was the ability to use their own funds (as opposed to credit).Edey said: "The importance of speed is significant because it helps explain why people continue to use cash for small value transactions and it also indicates that the current push towards contactless cards might be quite important for many consumers."