ANALYSIS The Impact of Electronic Payments on Economic …

The Impact of Electronic Payments on Economic GrowthIntroduction Greater worldwide card use raises a number of questions. Foremost, do Electronic Payments bring macroeconomic benefits? Moody s Analytics attempted to answer this question by analyzing macroeconomic data for 70 countries/regions between 2011 and 2015. By calculating the Impact of card usage on per capita consumption, Moody s Analytics was able to extrapolate the effect that the increase in spending on goods and services had on consumption and thereby GDP. Specifically, Moody s Analytics estimated that higher card usage contributed an additional $296 billion to consumption between 2011 and 2015, or a cumulative increase in global GDP during the sample time period. That equals about a $74 billion contribution to GDP each year. Real consumption grew at an average of in the same period, of which percentage point is attributable to increased card penetration. This implies that card usage accounted for about of growth in consumption, as well as an average increase of million jobs over 2011-2015.

Rising Card Payments Drive Economic Growth Payment cards are not just convenient but also play a crucial role in stimulat-ing economic growth in countries around the world. Over the last 50 years, the rapid prolifera-tion of electr onic payments—in particular credit, debit and prepaid cards—has changed how consumers pay for goods and services,

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