A late 2015 study conducted by economic and financial analysis firm The Perryman Group found that electronic payments have added more than 23 million permanent jobs and an additional 12 percent to the gross domestic product (GDP).
The Daily Caller reported the electronic payments breaking news, sharing that there are two reasons that electronic payments are contributing to economic growth. First, it is easier and less expensive than ever before to conduct transactions from start to finish, leading more people to take part in monetary transactions than ever before. Part of the ease of using electronic payments to complete transactions comes from the fact that consumers have so many options of payment method, including prepaid cards, debit cards, electronic checks and credit cards. For their part, small and local businesses now conduct more transactions simply as a result of the comfort with which they can do business overseas or across state lines thanks to the guarantee of "rapid and accurate payment in their home currency" that electronic payments grant them. Second, the fact that consumers and businesses can conduct transactions so quickly results in a greater number of transactions, or economic activity, per dollar that is in the current money supply. This means that the money supply can support a greater number of transactions made with electronic payments than it can support when consumers or clients make payments with any other method.
The two factors combined, as reported by The Heartland Institute's Peter Ferrara in The Daily Caller, mean that personal-consumption expenditures have risen by 17 percent and employment has increased by 20 percent. When translated into concrete numbers, this means that the fact that electronic payments exist has contributed to approximately "$1.7 trillion in annual gross domestic product and 23,166,000 permanent jobs" in the year 2014 alone. Further, there has been total surge "in gross domestic product of $34 trillion and 387 million person-years of employment" from the years 1970 through 2014, thanks to the efficiency and instant nature of electronic payments.
Even more promising? The positive financial trend concerning electronic payments shows no sign of stopping. A recent study by Moody's predicted "every 1 percent increase in usage of electronic payments could produce...an annual increase of approximately $104 billion in the consumption of goods and services," reports The Financial.
To talk more about how the right payment processing CRM (customer relationship management) software can aid any business in enjoying a bigger slice of this larger economic pie, please contact us.
