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Correlation Between Electronic Payments and Economic Growth

Do You Take Card?

Published: Mar 12, 2013 06:31:08 AM IST
Updated: Apr 3, 2013 05:58:03 PM IST
Correlation Between Electronic Payments and Economic Growth
Image: Sameer Pawar

The amount of business done globally by electronic card payments has seen an overall increase. Since 2008, the rise in electronic transactions across 56 countries have added $983 billion to global GDP.

Correlation Between Electronic Payments and Economic Growth

Playing your cards right
  • China’s credit and debit card penetration rate increased from 31% in 2008 to 56% in 2012
  • In emerging markets, a 1% increase in card usage results in a 0.056% increase in consumption (compared to 0.042% in developed markets) and a 0.028% increase in GDP (0.025% in developed markets)
  • Card transactions in India are the lowest among BRIC countries; 97.6% of all transactions in the country in 2012 were made in cash

Sources: “The Impact of Electronic Payments on Economic Growth, January 2013.” Moody’s Analytics, Commissioned by VISA.


(This story appears in the 22 March, 2013 issue of Forbes India. To visit our Archives, click here.)

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  • Ananth

    Card usage will help you track your monthly expenses. If you spend on what you want and need to spend..swiping is the best form financial discipline-\"Know your expenses\"

    on Oct 1, 2013
  • Jitendriya Raul

    Be an active member of nation development by using card in all the possible transactions

    on Apr 4, 2013