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.
