Impact of Digital Payments on the Economic growth of a country- A case of the Czech Republic

Abstract

The way we pay has been evolving over a large period now with the slow fade out of paper money the digital system of payments is seen to pique the interests of consumers, institutions, and businesses. It is simply due to the more efficient features it displays over fiat money and this is what the paper tries to identify if whether there exists an impact of these digital payments over the economy of the Czech Republic by carrying out a linear and multiple regression employing selected indicators from 2015 to 2020. To test for heteroscedasticity in the obtained regression models the Breusch pagan test was employed. The results showed us that there does exist an impact of these digital payments but not enough that a switch or larger usage be employed to such a payment system this could also be due to the insufficient transactional value data available for such digital payments the access to more data can also allow to recognize the real demand of digital payment products by consumer which will enable more supply of digital payment system and providers, thus more wide-ranging research with more digital payment inclusive data could be carried out to identify the real impact of these payment systems over an economy.