In this global economy, finance and economics are more tightly connected than ever. Every person plays a role in economic growth by the way they interact with merchants and service providers.
Just imagine — A customer buying a gift for their sweetheart could warm others’ lives as well as his or hers. This is not speculation, either. Analysts track how purchasing impacts the global economy. The results can be seen in over 20 countries whose GDPs (gross domestic product) have been increased.
How One Credit Use Impacts Everyone
One customer can make a difference! Using credit has a multiplier effect every time someone purchases anything. Recognize how your business can help individuals make an economic difference in their community.
Why should you encourage customers to use electronic credit to purchase? Here are some reasons why this makes a difference:
Electronic Payments Are Fast
The new EMV terminals transmit quickly, letting the vendor’s merchant account know about that specific purchase. The previous static card stripes gave the same information each time a customer swiped. The new approach provides a more accurate picture of everyone’s expenditures and is more secure. Processing is faster, which helps put money in business faster.
The Purchasing Power of One Item
On a trip to the local retail store, a customer purchased a shirt or blouse that was made here in the U.S. In order for the customer to be able to purchase that item, there’s job security. Your salesperson in the store has a job, plus his/her manager, and the levels above them. The store buyer has a job. The company the buyer purchased from, plus their employees and, typically, the source — the blouse manufacturer and its employees — also have work. Money flows.
Feeling heroic yet? Now bring the purchases down to the individual person. The salesperson who sold the blouse now has funds to pay for food, shelter, and clothing for themselves. They also can help their local economy by purchasing items produced locally, just like the original customer did.
Money for education is now more readily available to create jobs and a better life for the next generation. Funds to pay for doctors, inoculations for healthier children, and an array of other services and products now become possible with the pooled funds that are now in the pipeline.
Take a Larger View
Cities and states in the U.S. can have a better economy with the results of many people who purchase local items. The city can afford to fix roads and improve public transportation to help their citizens get to work easier and the suppliers’ goods arriving more swiftly.
Plus, they can provide public parks and facilities so people have a richer life, a place to play with their children. They can provide healthcare services for the poor and aged. More businesses can start from growth as manufacturers create more products.
Your Business at Work
Let’s say for example, you are a local company in the U.S. and you develop a product because you saw a need. You rented space, which you outgrow and you take a larger space. Employees work at your small factory. Your product line increases. All of your purchases, and your buyer’s purchases, are paid for with electronic purchases.
Soon your products are so popular that you are hoping to move to yet another facility within a couple of years where you can include a retail store. The retail store would require more staff and more use of onsite credit transactions. And so the increase of business locally continues.
These are just a few examples of what purchasing power can do for your local economy. Your career or work life could be improved by the overall effect of a better economy.
The effects of all this commerce cannot be discounted. Moody’s analytics credits higher card usage to adding $296 billion to global consumption between 2011 and 2015, and attributes an average increase of 2.6 million jobs during that same period to the increase in card usage.