According to the study, payment cards aren’t just convenient, they help stimulate growth for economies around the world.
“Electronic payments are a major contributor to consumption, increased production, economic growth and employment creation,” Moody’s Analytics Chief Economist Mark Zandi noted.
Migration to electronic payments has added nearly dollar 296 billion to GDP across 70 countries, the study said adding that increased electronic payment usage added 6,080,000,000 to India’s economy from 2011 to 2015.
“These findings reinforce the many positive benefits that electronic payments bring to local economies all over the world,” Visa Inc CEO Charlie W Scharf said.
Meanwhile, increasing electronic payments has also contributed to significant employment generation as around 2.6 million jobs on average per year across the 70 countries sampled between 2011 and 2015.
Countries with the largest number of job gains per year were also the largest countries and with 336,000 jobs added over the five years studied, India saw the second highest average job increases due to of the combination of fast growing labor productivity and increasing card usage.
The report also found that the electronification of payments benefited governments and contributed to a more stable and open business environment.
Additionally electronic payments helped to minimize what is commonly referred to as the grey economy – the economic activity that is often cash-based and goes unreported.
“This research also suggests that the right public policies can create an open, competitive payment environment, and contribute to economic growth and job creation,” Scharf added.
The report said to encourage further electronification of payments, countries must promote policies that minimize unneeded regulation, create a robust financial infrastructure, and lead to greater consumption.