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.

• 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