Credit and debit card usage driving economic recovery, growth
February 13, 2013

The electronic payments market has experienced massive growth throughout the past several years, as new advances in technology have bolstered popularity of these transaction capabilities among consumers and enterprises. Integrated payment systems have helped a variety of small and medium-sized businesses (SMBs) reduce transaction costs while driving engagement among customers.

Several reports, including those from Gartner and IDC, forecast the mobile payments market to experience continued exponential growth in the coming years. Some of the latest studies indicate that mobile payments will increase at an 80 percent compound annual growth rate throughout the next five to seven years. Merchants can capitalize on this popularity by procuring the systems necessary to accept credit card payments through a variety of platforms, including mobile devices.

Electronic payments bolster economies
Moody's Analytics recently released the results of a new study that sought to discover the impact electronic payments have on national financial conditions. According to the research, electronic payments added as much as $127.8 billion in gross domestic product to the U.S. economy in the harshest years of the recession, between 2008 and 2012.

The firm asserted that credit and debit card usage has helped reduce costs and increase efficiency of selling goods and services in nearly every Western nation and emerging market. This usage is believed to have been bolstered by its ability to enable consumers to make more sound decisions when it comes to purchases. 

"Despite a challenging global economic landscape, the increasing penetration of payment cards helped increase consumer consumption and on average, added to GDP," Mark Zandi, Chief Economist of Moody's Analytics, explained. "The increase in consumption parallels the growing popularity and accessibility of electronic payments among global consumers. At the same time these findings point to the need for governments to adopt policies that encourage the shift to efficient and secure electronic forms of payments."

Mobile payments lead the way
ReadWriteWeb recently listed several indications that mobile payments have succeeded in driving cashless transaction growth in the years following the recession, and asserted that this trend will likely continue because of a variety of factors. The news provider explained that one study of enterprise executives revealed that mobile payment applications are the top priority regarding new technology for 2013. 

Because of these trends, the source predicts that mobile payments will continue to outpace cash-based transactions in the coming years. Merchants can ensure efficient electronic transaction capabilities by adopting integrated payment systems. 

 

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