Monday, November 4, 2013
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Electronic Payments Provide 0 3 Boost to GDP
A recent study released by Moody’s Analytics shows that card usage in the U.S. increased GDP by 0.3% over the past five years, adding $127 billion to the economy.
The study looked at 56 countries, together representing 93% of global GDP and found that payment cards added $983 billion to global GDP over the same five-year window. The average global growth for the five years was 1.8% per year, which would have fallen to 1.6% without card usage.
Moody’s noted that “Card usage makes the economy more efficient, yielding a meaningful boost to economic growth, year after year, through a multitude of factors including transaction efficiencies, consumer access to credit and consumer confidence in the payment system overall."
Card usage contributes to economic activity by reducing transaction costs and improving efficiency in the flow of goods and services. Cards allow consumers immediate secure access to all of their funds and credit lines allowing them to optimize consumption decisions. The cards also aid merchants by reducing cash and check handling and the risks associated with holding cash.
Read the full white paper and fact sheet.
Electronic Payments Provide 0 3 Boost to GDP
The study looked at 56 countries, together representing 93% of global GDP and found that payment cards added $983 billion to global GDP over the same five-year window. The average global growth for the five years was 1.8% per year, which would have fallen to 1.6% without card usage.
Moody’s noted that “Card usage makes the economy more efficient, yielding a meaningful boost to economic growth, year after year, through a multitude of factors including transaction efficiencies, consumer access to credit and consumer confidence in the payment system overall."
Card usage contributes to economic activity by reducing transaction costs and improving efficiency in the flow of goods and services. Cards allow consumers immediate secure access to all of their funds and credit lines allowing them to optimize consumption decisions. The cards also aid merchants by reducing cash and check handling and the risks associated with holding cash.
Read the full white paper and fact sheet.