According to a study conducted by Moody’s Analytics on behalf of Visa, involving 56 countries between 2008 and 2012, the growth in the use of electronic payments contributed $983 billion to their GDP; the equivalent to creating 1.9 million jobs.
Of the 56 countries that account for 93% of global GDP it was concluded 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.”
Furthermore, growth in card consumption added to an average additional growth in GDP of 0.17 percentage point per year over the five-year period. During the same period, GDP in those countries grew by an average of 1.8 percentage points.
A spokesperson from SmartDebit commented on the findings, “The study confirms the effectiveness of electronic payment products on a global scale, despite the tough economic landscape. The speed, convenience and efficiency that electronic payments provide to both consumers and businesses are unequivocal. Traditional payment methods such as cheques are experiencing severe decline in usage as well as an increased number of people leaving home without cash.” He continues, “Increased electronic payment usage will drive efficiencies across the private and public sector and contribute to the UK’s economic growth.”
As the demand for immediate payments implementation grows in the United States, Iliad Solutions have identified one of the largest risks to face the payments industry over the next few years.
Barclays has signed contracts with six of the fintech startups that just graduated from its second New York accelerator programme.
Company card killer Pleo has raised $3m in new funding as it prepares for public launch in the UK and Denmark.
Cheques are become less and less common in the UK according to new research from global market research firm Mintel which claims contactless card use has overtaken cheque payments in the UK for the first time.