According to a Moody’s Analytics study for Visa, credit, debit and prepaid card purchases boosted the economy’s growth in the last five years. In an earlier study, the research firm stated that card use has globally raised consumption as cards provided greater convenience versus cash in buying and selling. The increased electronic payment usage also created an equivalent of 3,460 jobs per year in the Philippines in the same period.
While the electronic payment contribution to the national economy was sizable, the Philippines still lags behind other Southeast Asian countries in terms of average GDP increase with a 0.01% average increase for the past five years. Thailand, 0.19%, Vietnam, 0.14%, and Singapore, 0.1% led the region in largest weighted average increase in GDP.
Visa said in an earlier report that the biggest challenge is changing the behavior of the consumers towards digital payments as cash continues to be the predominant payment method, accounting for 82% of all trade payments.
Moody’s said in its report that it recommends encouraging further payment electronification at a macro-level, to promote policies that streamline regulation in the country and to create a robust financial infrastructure that would lead to a greater consumption.
The findings in the report further show the positive benefits that electronic payments bring to the local economies, as well as the global economy. With the right public policies, E-payments will contribute to economic growth and job creation.
