Visa, the global leader in digital payments technology, on Thursday claimed that Bangladesh could realise $1.5 billion in annual net benefits by relying more on digital payments such as cards and mobile payments.
Of the amount, businesses could yield benefits worth $1.2 billion by transitioning to an achievable level of cashlessness by increasing use of digital payments, Visa said in a study report on ‘cashless cities: realising the benefits of digital payments’.
The benefits will be derived from factors including time savings in processing incoming and outgoing payments and increased sales revenues stemming from extended online and in-store customer bases.
The estimated benefits for consumers and the government are worth $0.1 billion and 0.2 billion respectively, it said.
The current level of digital maturity of Dhaka is cash-centric, the report said.
The study commissioned by Visa and conducted by Roubini Thought Lab examined the economic impact of increasing the use of digital payments in major 100 cities around the world including Dhaka.
The report estimated that relying more on electronic payments could yield a net benefits of up to $470 billion per year by the cities.
It also found that the cities could benefit from catalytic impacts and economic growth over the next 15 years primarily driven by the time savings experienced by consumers and businesses when they use digital payments.
The estimated catalytic impacts resulting from the benefits over the next 15 years for Dhaka is an increase of employment by 4.4 per cent from the current rate of employment, 34.9 basis points to the country’s GDP and 0.2 per cent in productivity.
It found the results after analysing various costs and benefits of both digital and physical payments.