Dhaka could realise $1.5b annual net benefits

Visa, the global leader in digital payments technology, recently announced an independent study, conducted by Roubini ThoughtLab and commissioned by Visa, examining the economic impact of increasing the use of digital payments in major cities around the world, including Dhaka.

''Dhaka could help the city realise, US$1.5 billion annual net benefits. The study estimates that relying more on electronic payments, such as cards and mobile payments, could yield a net benefit of up to U.S. US$470 billion per year across the 100 cities studied - roughly the equivalent to 3.0 per cent of the average GDP for these cities,'' said a statement.

"Cashless Cities: Realising the Benefits of Digital Payments", is a unique study that quantifies the potential net benefits experienced by cities which move to an "achievable level of cashlessness"-defined as the entire population of a city moving to digital payment usage equal to the top 10 per cent of users in that city.

The study does not look at eliminating cash. Rather, it seeks to quantify the potential benefits and costs of significantly increasing the use of digital payments.

By reducing reliance on cash, the study estimates the immediate and long-term benefits for three main groups-consumers, businesses and governments. According to the study, these benefits could add up to combined direct net benefits of approximately U.S. US$470 billion across the 100 cities that were analyzed.

TR Ramachandran, Group Country Manager, Visa, India & South Asia, said, "Cities are the new engines of economic growth. To unlock their true economic potential, and become globally competitive, cities must embrace digital payments. This global study shows how becoming more cashless delivers real benefits to governments, businesses and consumers, stimulating long-term economic growth. Dhaka could achieve, on average, US$1.5 billion in annual net benefits- roughly the equivalent to 3 percent of the city's average GDP."

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