The Impact of Digital Payments on Economic Growth in Indonesia

Abstract

Technology facilitates transactions through modern payment instruments. Digital financial inclusion enables easier and more efficient access to financial services for all groups, so that the benefits of economic development can be more evenly distributed. With fast, secure, and efficient services, digital payments promote economic efficiency, financial inclusion, and economic growth. This study aims to analyze the impact of digital payments on economic growth in Indonesia. The data used is from 2020 to 2024, covering 34 regions in Indonesia. The data was obtained from Bank Indonesia and the Central Statistics Agency using a panel data regression research method that calculates gross domestic product (GDP), the number of cards/instruments, and the unemployment rate. The results show that digital payment transactions have a positive impact on economic growth, while the unemployment rate has a negative impact. These findings confirm the importance of digital payment transaction systems as one of the drivers of sustainable economic growth in Indonesia.