Financial sector development can play a crucial role in driving economic growth. Innovation in the payment system can potentially impact output, prices, and monetary policy transmissions. However, there is a conspicuous lack of work on the role of the payment system in driving economic activity,...

The recent increase in the use of a digital payment system is an interesting prospect in predicting macroeconomic activity. A digital payment system comprising credit cards, debit cards, automated teller machines (ATMs), and mobile banking represents a broad spectrum of spending activity. The...