Contributions of Card Payment Systems to Economy

Contributions of Card Payment Systems to Economy

Credit cards decrease the amount of cash being circulated and ensures that economic activities are registered. So, tax revenues are increased. Each 1,000 TL spent by credit cards instead of cash increases tax revenues by 20 TL.

Each 1,000 TL spent by credit cards increases GDP by 0.0142 TL. The growing economy brings together new business opportunities and prevents unemployment.

Furthermore, since the transaction cost of cards is one third less than the transaction cost of cash, the economy is unburdened from papers and a contribution is made to overall GDP.

Shopping with credit card has an effect of decreasing the inflation. While the increase in money supply also increases the inflation by 0.17, credit card expenditures decreases the inflation by 0.017 during the same period.

Credit cards are creating new employment opportunities. If there will be an increase in credit card expenditures, 2% of increases in the employment within the first year is caused by such credit card expenditures and this ratio is increased to 10% in the second year.

As a result of shopping made by credit card, all monetary transactions are recorded to the economic system, investment flow for savings is accelerated and commercial activities are increased.

Utilization of cards instead of cash reduces bureaucracy, provides a lean purchasing power to consumers and brings transparency in controlling the expenditures.

Member merchants have an opportunity to increase their potential customers. They can sell their products and services also to customers, who do not carry cash at that moment, so their business volume grows.

While they are having an opportunity to collect their receivables in cash in a very short period, they get rid of the burden and risk of keeping too much idle money in their vaults.