A recent analysis by the Electronic Payments Coalition (EPC) has highlighted the significant economic impact that electronic payments will have on Cyber Monday, one of the biggest online shopping days of the year. Americans are expected to spend over $13 billion online this Cyber Monday, with electronic payments playing a crucial role in supporting businesses during the holiday season.
"Cyber Monday could not exist without the modern electronic payments system," stated Richard Hunt, Executive Chairman of EPC. "Credit and debit cards do more than make online shopping possible—they ensure seamless, secure, and efficient transactions that drive consumer confidence, fuel economic growth, and support businesses of all sizes nationwide."
The electronic payments system provides essential benefits for businesses, such as lower processing costs compared to cash, guaranteed payments, faster transactions, and 24/7 operation capabilities. These features allow businesses to serve customers at any time while offering strong security measures to protect consumer data and prevent fraud—an important aspect during the busy holiday shopping period. Research indicates these advantages offer substantial value for both businesses and consumers.
"Beyond lowering costs, credit and debit cards improve the customer experience, drive higher sales, and guarantee prompt payments to business owners," added Hunt. "This Cyber Monday, as billions flow into the market, there is no denying that electronic payments are the backbone of our economy." The analysis suggests that if consumers made equivalent in-store purchases using cash alone amounting to $13 billion, it would cost businesses $726 million or about $531 million more than if those purchases were made using credit or debit cards.
The EPC believes that investing in new technologies and establishing national data security standards will help create a stronger payment system.