Electronic Payments Stimulate Economic Growth According to New Study

Other highlights in the study include:

U.S. Economic Growth: Card usage in the U.S. increased GDP by 0.3 percent,
adding $127 billion to the U.S. economy.

Global Economic Growth: In some countries, card usage increased consumption
significantly – at the top of that list: China by 4.89%; Chile by 1.28%;
and Brazil by 1.15%.

Value of Electronic Payments: The study concluded that increased credit and
debit card usage contributes to economic activity by reducing transaction
costs and improving efficiency in the flow of goods and services. The
advent of credit and debit cards has greatly aided consumers’ ability to
optimize consumption decisions by giving them secure and immediate access
to all of their funds on deposit or a line of credit. Merchants also
benefit because there is less cash and check handling in the system,
eliminating the burdens and risks associated with holding cash. In
addition, the dramatic growth of ecommerce would not be possible without
global electronic payment systems, which allow the safe and easy transfer
of funds from consumers to merchants.

Supporting Government: Electronic payments lead to a reduction in the gray
economy by increasing transparency and generating additional tax revenue.
Impact of Future Card Growth: Moody’s Analytics found that a 1% increase in
card usage across the 56 countries in the study produces an annual increase
of 0.056% in consumption. Given recent card penetration growth rates and
the additive effects calculated on future GDP, Moody’s Analytics estimates
a meaningful 0.25% addition to consumption and 0.16% additional GDP.

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http://www.businesswire.com/news/home/20130207005564/en/Electronic-Payments-Stimulate-Economic-Growth-Study