The growth in the use of electronic payment products added $1.5 billion to India’s GDP in last five years, as per a study conducted for Visa by Moody’s Analytics.
The electronic payment products, such as credit and debit cards usage, contributed 0.2 per cent of the global Gross Domestic Product (GDP) from 2008-2012, as per the study done across 56 countries (including India) that represent 93 per cent of global GDP.
Among emerging markets, it contributed 0.8 per cent to the GDP.
Globally, electronic payments contributed $983 billion to the GDP of the 56 countries examined between 2008 and 2012, said Uttam Nayak, Visa Group Country Manager, India & South Asia.
Over the same time period, GDP in those countries grew by an average of 1.8 percentage points, Uttam Nayak, Visa Group Country Manager, India & South Asia.
However, he pointed out that India lags behind most countries including China, US, Brazil, Singapore, Hong Kong among others in terms of contribution of card usage to GDP. Euromonitor data have revealed that more than 97.6 per cent of all transactions in 2012 were in cash.
In addition, according to World Bank data, 65 per cent of Indians do not currently have access to formal financial services. This explores potential for more electronic payments and mobile-based transactions, the report said.
“We are excited about the prospects of increasing electronic payments in India through new, innovative solutions, and we look forward to working with local businesses, governments and industry stakeholders to continue to expand and support local economic growth,” Nayak added.