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Four metro cities can bag $7.2 bn a year on digital payment boost: Visa

Delhi, Mumbai, Bengaluru and Chennai to reap benefits of increased digital transactions, says the report

Press Trust of India  |  New Delhi 

digital payment, e-transactions

Four metro cities of Delhi, Mumbai, and can reap benefits of $7.2 billion annually by increasing payments through means, says a study report by global financial services major

The study conducted by and commissioned by examined the economic impact of increasing use of payments in major cities around the world including these four Indian cities.

"The study estimates that relying more on electronic payments, such as cards and mobile payments, could yield a net benefit of up to $470 billion per year across the 100 cities studiedroughly equivalent to 3 per cent of the average for these cities," said a release.

Mumbai, with a population of 19,547,000 and of $104.1 billion, could gain $2.9 billion annual net benefits. can gain $2.2 billion ($74.4 billion); $1.3 billion (GDP 44.7 billion) and can realise benefit of $0.8 billion (GDP 30.9 billion), it added.

"Increased use of payments could potentially save time for consumers and businesses, reduce cash related crime, increase business sales, bring about greater efficiencies, and increase tax revenues for governments," said T R Ramachandran, Visa group Country Manager for

He said a greater adoption of digital payments could boost stakeholders productivity by reducing the amount of time spent on payment related activities.

"This boost can act as a catalyst to further economic activity, increasing GDP growth, creating additional jobs and further bumping up wages and productivitycatalytic impacts."

As cities increase use of digital payments, the positive impacts can extend beyond financial benefits to consumers, businesses, and government, said the study.

The shift to digital payments also may have a catalytic effect on the city's overall economic performance, including GDP, employment, wage, and productivity growth, it added.

Lou Celi, Head of Roubini ThoughtLab, said: "The use of digital technologiesfrom smart phones and wearables to artificial intelligence and driverless carsis rapidly transforming how city dwellers shop, travel, and live."

However, without a firm foundation in electronic payments, cities will not be able to fully capture their digital future, he added.

Economics and evidence-based research firm surveyed 3,000 consumers and 900 businesses across six cities --Tokyo, Chicago, Stockholm, Sao Paolo, Bangkok and Lagos-- in 2016, representing different levels of digital payments maturity.

The surveys examined use, acceptance and cost-benefit impact of physical and digital money and extrapolated these survey results based on specific demographic and economic data to another 94 cities around the world.

First Published: Thu, October 12 2017. 22:57 IST