Merchants gain competitive advantage by accepting credit card payments
February 24, 2013

Credit cards and debit cards have become increasingly popular for purchases of all kinds, as the global economy continues to adopt electronic payments rapidly. Merchants need to ensure they can accept credit card payments through a variety of platforms to maximize revenues and optimize the customer experience.

Integrated payment systems can be implemented quickly and affordably, and are especially useful for small and medium-sized businesses that want to create more efficient transaction processing strategies. The solutions can accept debit and credit cards, as well as mobile payments, while maximizing the speed with which transactions are finalized.

Credit, debit card usage driving growth
The Asset recently reported that the latest studies regarding electronic payments usage around the globe indicated that credit and debit card payments are driving stronger gross domestic product in most of the largest nations. According to the news provider, the study found estimated that total GDP between 2008 and 2012 would have been 0.2 percent lower had card usage not increased. Between those years, annual GDP was 1.8 percent. 

In nations where more people use credit and debit cards, such as the United States, which has one of the largest populations of account holders, the study indicated that GDP will be further augmented. The source added that electronic payments of all kinds, including mobile, e-commerce and card transactions, will continue to grow more quickly than cash-based transactions in the coming years. 

"Despite a challenging global economic landscape, the increased penetration of payment cards helped boost consumer consumption and, on average, added to GDP," the study's authors explained, according to The Asset. "This was particularly true for emerging markets. The increase in consumption parallels the growing popularity and accessibility of electronic payments among global consumers, and the findings point to the need for governments to adopt policies that encourage the shift to efficient and secure electronic forms of payments."

U.S. card usage rising
The most recent data available indicates that nationwide credit card usage has increased steadily throughout the past several decades. The Federal Reserve Bank of Boston found that 610 million credit cards were held by U.S. consumers in 2010. Further, each holder has an average of 3.5 cards in his or her possession. 

The revenue driving powers of credit and debit card usage are obvious, illustrating the importance of adopting the necessary systems to accept electronic payments. Reports indicate that consumers are likely to spend more when purchasing goods with electronic payments rather than cash, and merchants can capitalize on this trend with integrated payment systems. 

Nexus: G-WEBCD5