abstract

Digital payment systems have increasingly become an integral part of modern economies, significantly influencing economic growth through enhanced financial inclusion, transaction efficiency, and innovation. This research paper examines the impact of digital payment systems on economic growth, utilising a case study approach to evaluate how countries with advanced digital payment infrastructures have experienced transformative changes in economic dynamics. In this paper, we analyse empirical data, review pertinent literature, and discuss the mechanisms by which digital payment technologies drive growth. Our study focuses on case studies from both emerging markets and developed economies, assessing the socio-economic implications, regulatory challenges, and potential for future innovation in digital finance. The findings suggest that digital payment systems have a multifaceted impact on economic growth by facilitating smoother transactions, reducing the cost of financial intermediation, and promoting entrepreneurship. Moreover, digital payments contribute to increased transparency in the financial sector and help combat corruption, thereby fostering a more resilient economic environment. The paper concludes with policy recommendations designed to harness the full potential of digital payment systems while mitigating associated risks. By integrating a wide range of data sources and qualitative insights, this study aims to offer a comprehensive perspective on how digital finance is reshaping global economic trajectories, paving the way for sustainable development and inclusive growth.