Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Electronic Payments Pump $983 Billion into Global Economy

Electronic Payments Pump $983 Billion into Global Economy

Add to Favorites:
Electronic Payments Pump $983 Billion into Global Economy
February
11

The use of debit and credit cards boosted the global economy to the tune of $983 billion between 2008 and 2012, according to a Visa-sponsored study by economic forecasting firm Moody’s Analytics.

Electronic payments sped up economic recovery in the wake of the recession, according to survey. The use of cards also increased consumption in emerging markets by making payment methods more accessible.

Research looked at the Gross Domestic Product (GDP) of 56 countries over a four-year period and found that card usage was the equivalent of adding 1.9 million jobs to the global economy.

The 56 countries surveyed represent 93% of the global GDP. Among them, China stood out as adding the most revenue to the economy due to electronic payments. Of the total $983 billion added to the GDP though the use of cards, a whopping $375 billion came from China. The U.S. contributed $127 billion to the total. The top ten countries were:

  • China – $375 billion
  • United States – $127 billion
  • United Kingdom – $68 billion
  • France – $53 billion
  • Brazil – $51 billion
  • Russia – $36 billion
  • Japan – $25 billion
  • South Korea – $23 billion
  • Australia – $21 billion
  • Germany – $16 billion

Benefits of electronic payments

Consumers aren’t the only ones who find using credit and debit cards convenient. Retailers also benefit from electronic payments. The study found that there were three major factors behind the popularity of using credit and debit cards:

  • Convenience and peace of mind for both consumers and merchants – debit and credit cards provide customers with ready access to all their available lines of credit and funds, while giving merchants the assurance of guaranteed payments.
  • Security – consumers who pay with electronic methods are protected in case of fraud and have recourse if their accounts are compromised.
  • Less paper, more transparency, increased tax revenue – the so-called “gray economy” – the distribution of goods through unofficial or informal channels – is reduced when electronic payments are utilized, increasing tax revenues. At the same time, fewer paper transactions reduce costs for banks.

Moody’s says there is an increase of .056% in consumption each year due to the 1% increase in card usage across all countries in the study and predicts .25% higher consumption and a .16% rise in the GDP as a result of recent card penetration rates.

Overall, the study supports the idea that changing over to electronic payments can only increase economic efficiency and global economic growth because of convenience for consumers, easier payment processing for merchants, and more tax revenue for governments.

Add to Favorites:

Related News:

Credit Cards Continue To Rally

By Dar Dowling, Posted: June 08, 2015

Across the board U.S payment cards of all kinds continue to be hot with consumers last year, according to a new study. But when push came to shove, credit cards outperformed debt and prepaid cards. Continue reading
Global Study Shows That New Tech Boosts Credit Card Use

By Dar Dowling, Posted: March 18, 2016

Electronic payments are not only in style with consumers and retailers, they have also had a profound impact on the global economy, according to a new study by Visa. Continue reading
American Express and Costco to Break Ties

By Dar Dowling, Posted: February 17, 2015

American Express and Costco are ending their relationship, with the split slated to take effect on March 31, 2016. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit