The credit card terminal may be even more important than previously thought. According to a recent study for Visa by Moody’s Analytics, electronic payments go hand-in-hand with economic growth.
According to the study, credit and debit card usage was tied to a 0.3 percent increase in U.S. gross domestic product (GDP) from 2008 to 2012. This figure accounts for $127 billion. Research found that this economic boost could be attributed to reductions in transaction costs, better efficiency, risk reduction and a number of other positive side effects of using technologies like prepaid cards and mobile credit card processing.
Over the four years included in the report, $983 billion were added to the GDPs of 56 countries thanks to electronic payment solutions.
“Despite a challenging global economic landscape, the increasing penetration of payment cards helped increase consumer consumption and on average, added to GDP,” Mark Zandi, Chief Economist of Moody’s Analytics, said. “The increase in consumption parallels the growing popularity and accessibility of electronic payments among global consumers.”
The New America Foundation’s Global Assets Project found that online credit card processing options may help developing nations by facilitating aid efforts. According to the organization’s research, more than 60 percent of individuals who receive cash transfers receive this aid electronically, and this allows them to store funds securely for the future.Back To Blog