ETA and TSG Release TRANSACT Special Report: U.S. Economic Indicators
5-10-2017
Today, ETA and the Strawhecker Group (TSG) released their quarterly Economic Indicators Report live from TRANSACT, forecasting strong economic growth in the United States.
Report Contents:
- U.S. Macroeconomic Outlook
- Payment Network Size & Growth
- Performance of Public Payments Companies
- Payments Versus Sports: Perspective in Valuations
- Consumer Survey Results
Highlight: Electronic Payments – The Engine That Runs The Economy
Since the start of 2017, U.S. political issues have dominated the economic headlines and there appears to be more uncertainty about when and if Congress can deliver on policy changes. Despite these uncertainties, consumer and business sentiment surveys have presented an upbeat assessment of the economy. Economic trends currently suggest that 2017 will be a growth year when it comes to consumer spending. Retail sales (minus gas) are predicted to jump 4.1% this year, which would mark the best growth since 2014.
Consumer Spending is a Key Ingredient in the Economy
- Consumer spending is one of the most vital components of any economy. Depending on an economy’s breadth, consumer spending can range anywhere from 50-75% of gross domestic product (GDP).
Consumer Spending is a Key Ingredient in the Economy
- Increased use of electronic payments boosts consumption and GDP. Many economists have suggested that a 1% increase in usage of electronic payments produces, on average, an annual increase of approximately $100 billion in the consumption of goods and services.
- Increased use of electronic payments makes the economy more efficient. Increased usage reduces transaction costs, improves the flow of goods and assists consumers by making purchasing more convenient.
- Electronic payment usage benefits governments which can collect more tax revenue due to more transparent transactions that can be taxed more readily.
- Encouraging the growth of electronic payments provides consumers and merchants a choice and increases competition. Policy measures that promote electronic payment solutions improve the economic environment.
About ETA
The Electronic Transactions Association (ETA) is the world’s leading advocacy and trade association for the payments industry. Our members span the breadth of significant payments and fintech companies, from the largest incumbent players to the emerging disruptors in the U.S. and in more than a dozen countries around the world. ETA members make commerce possible by processing approximately $56.75 trillion annually in purchases and P2P payments worldwide and deploying payments innovation to merchants and consumers.
ETAs membership spans the breadth of the payments industry to include independent sales organizations (ISOs), payments networks, financial institutions, transaction processors, mobile payments products and services, payments technologies, and software providers (ISV) and hardware suppliers. For more information, visit electran.org.