Higher usage of credit and debit cards added $1.5 billion to India's GDP, according to a study conducted for Visa by Moody's Analytics. The study, released on Wednesday, notes electronic payment products make the economy of countries more efficient, yielding a meaningful boost to economic growth. Globally, electronic payments contributed $983 billion to the GDP of the 56 countries, between 2008 and 2012. During this period, GDP in these countries grew an average of 1.8 percentage points, notes the study.
According to Moody's Analytics, a one per cent increase in card usage produces an annual increase of 0.056 per cent in consumption. Given the recent card penetration growth rates and the additive effects calculated on future GDP, Moody's Analytics estimates a meaningful 0.25 per cent addition to consumption and 0.16 per cent additional GDP.
The study notes that during 2008-2012, the real GDP growth globally was only 1.8 per cent a year. Without increased card usage, that growth would have been 1.6 per cent.