- Regional Economic Growth: Across North America, the adoption of electronic payments increased GDP. In addition to the US$9.7 billion increase in Canada, electronic payments helped increase GDP in the U.S. by US$127.4 billion and in Mexico by $7.8 billion.
- 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 cheque handling in the system, eliminating the burdens and risks associated with holding cash. In addition, the dramatic growth of eCommerce and mobile payment methods would not be possible without global electronic payment systems, which allow the safe and easy transfer of funds and guaranteed payment to merchants.
- Supporting Government: Electronic payments lead to a reduction in the grey economy, or unregulated market, by increasing transparency and generating additional tax revenue.
- Impact of Future Card Growth: Moody's Analytics found that a one per cent increase in card usage across the 56 countries in the study produces an annual increase of 0.056 per cent in consumption. Given recent card penetration growth rates and the additive effects calculated on future GDP, globally, Moody's Analytics estimates a meaningful 0.25 per cent addition to consumption and 0.16 per cent additional GDP.
- Card Growth Boosts Recovery: From 2008 to 2012, global real GDP was only 1.8 per cent per year. Without increased card usage, that growth would have been 1.6 per cent. Card penetration and usage provided an important boost to economies, helping to mitigate what would otherwise have been an even slower recovery from the global recession.
The Power Of Electronic Payments Stimulates Economic Growth In Canada
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