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Digital payments and GDP growth: A behavioural quantitative analysis

Author

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  • Birigozzi, Andrea
  • De Silva, Cristina
  • Luitel, Prabesh

Abstract

This study examines the relationship between the provision of digital payment and GDP growth by uniquely integrating behavioural attitudes, shaped by the status quo, individual behavioural bias and financial literacy. We employ a panel data analysis across multiple countries which differentiates from studies focusing on aggregation transaction metrics within single-country context. We demonstrate a positive association between behavioural adoption of digital payments and GDP growth. We provide evidence that each percentage increase in the adoption of digital payments contributes to an increase in GDP growth, boosting it between 6% and 8% of its current growth rate. Digital payments reduce transaction costs, expand financial access and reshape financial behaviours. Our findings highlight the critical need to incorporate behavioural insights into policy design for sustainable economic growth.

Suggested Citation

  • Birigozzi, Andrea & De Silva, Cristina & Luitel, Prabesh, 2025. "Digital payments and GDP growth: A behavioural quantitative analysis," Research in International Business and Finance, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:riibaf:v:75:y:2025:i:c:s0275531925000248
    DOI: 10.1016/j.ribaf.2025.102768
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    Keywords

    Digital payment; Behavioural finance; Financial services; Financial inclusion; Financial literacy; GDP growth;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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