Digital payments spur growth, ETA study finds

A study published Jan. 15, 2026, by the Electronic Transactions Association and conducted by PwC, found digital payments exceed $350 billion in annual U.S. economic output. Based on 2024 statistical data from the U.S. Bureau of Economic Analysis, Bureau of Labor Statistics and Census Bureau, the research highlights economic benefits of electronic transactions.

ETA CEO Jodie Kelley noted the study's most exciting finding is how much the payments industry is helping small business. "From starting in a garage to a thriving business, payments help entrepreneurs to start a business, manage their business, and compete with large retailers, including big box stores," she said in an interview with The Green Sheet.

Nationwide benefits

Researchers assessed the U.S. payments industry economic contributions at state and federal levels directly, indirectly and residually to derive the following metrics:

• Employment: The U.S. payments industry directly provided 556,600 full- and part-time jobs in 2024. The industry's total contributions exceeded 2 million jobs through direct, indirect and induced (residual) effects from industry operational spending and capital investment.

• Labor income: The average direct labor income per job in the payments industry was $165,000 in 2024, more than double the U.S. average of $78,100. The payments industry supported $210 billion in labor income through direct, indirect and induced (residual) effects.

• Value added: The U.S. payments industry directly contributed $148 billion to U.S. GDP in 2024. The industry's national GDP contribution was $354 billion in combined operational and capital investment effects, representing 1.2 percent of the national total in 2024.

"Large states such as California, Texas, Florida and New York contribute substantial absolute economic activity, while states with highly specialized financial-services ecosystems—like Delaware, South Dakota, Virginia and Utah—show elevated economic dependence on payments-related activity," researchers wrote.

"These complementary perspectives," they added, "provide a comprehensive view of how the payments industry supports jobs, income, and GDP across diverse regional economies."

Advancing entrepreneurship

Having surveyed the modern payments ecosystem across card networks, merchant acquiring, digital wallets, transaction processing, payment-enabling technologies and supporting financial-services functions, PwC researchers concluded the U.S. payments industry is driving efficiencies and advancing entrepreneurship in numerous and measurable ways.

"Digital payments have materially changed how businesses accept payments," researchers wrote. "Lower costs and improved access to payment acceptance facilitate entrepreneurship and business scaling, especially in retail, food services, and personal services sectors. These lower barriers to entry can affect entry dynamics for micro and small businesses."

Kelley also pointed out that payments allow small businesses to accept payments in minutes and, once they accept digital payments, expand sales by 8 to 10 percent. The study found this increases an additional $34 billion in revenue, she said, noting that the impact doesn't end there, she added.  

"The cost savings generated by the efficiencies brought by digital payments save small business 806 million labor hours per year," she said, adding that this is massively important to entrepreneurs who need to focus on their businesses rather than being diverted by tasks like accounting, inventory and tax reporting.

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