Credit card and debit card use boost Australian GDP.

Article by Kevin Boyle

A global study of electronic payments released by Visa shows credit card and debit card usage in Australia added almost $20 billion to the countries GDP from 2008 to 2012.

Card usage in Australia increased from 50 percent to 58 percent in 2012, growing GDP by 0.47 percent and adding $20 billion to the Australian economy, claims the report under taken by Moody's Analytics. 

"It demonstrates that card usage makes the economy more efficient, yielding a meaningful boost to economic growth," says Visa Country Manager Vipin Kalra.

Kalra also stated that Visa has much higher goals for the future. It's estimated that around 21 percent of Australians do not have a debit card, 36 percent don't have a credit card and more than 24 percent of transactions in 2012 were made in cash.

"Imagine the economic benefit if we connected more Australians to electronic paymenys, giving them secure and immediate access to all their financial resources," Mr Kalra said.

Globally the impact of electronic payments is estimated around US$983 billion or the equivalent of 1.9 million jobs. Emerging markets showed the greatest benefit with 0.8 percent increase in gross domestic product.

Visa also states that credit cards and debit cards gives users a greater choice of decisions when making a purchase as well as secure and immediate access to all their funds on deposit or line of credit.

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