Visa: Digital payments will benefit world economy

World
Europe

Moving from cash to digital payments will provide enormous direct advantages to consumers, businesses and governments, according to research released by financial services corporation, Visa.

Thanks to technological developments, more and more people are adopting digital payments in their daily life across the globe.

A cashless society, says Michael Busk-Jepsen of the Danish Bankers Association, "is no longer an illusion but a vision that can be fulfilled in a reasonable time frame."

The research covered 100 major cities across 80 countries in the world. /Reuters Photo

The research covered 100 major cities in 80 countries and found that increasing digital payments in these areas could result in total direct net benefits of 470 billion US dollars per year, representing more than three percent of their combined GDP.

The move to digital payments is expected to save 28 billion US dollars for consumers by saving time in banking, transit and retail transactions and reducing cash-related crime, according to the research carried out by research firm Roubini Thought Lab on behalf of Visa.

Research found that total net benefits to businesses across all 100 cities could amount to over 312 billion US dollars. /Photo via Reuters

Businesses are also set to benefit as accepting cash and checks costs businesses around seven cents in the dollar compared to five cents for every dollar collected from digital sources.

The research also found that total net benefits to businesses across all 100 cities could amount to over 312 billion US dollars.

Moreover, reduced crime and tax loopholes in a cashless society would benefit governments.

The research estimated that the total net benefits for governments could reach 130 billion US dollars a year.

Source(s): China Daily