doi.org/10.52340/eab.2025.17.03.07

The daily decline in foot traffic to physical bank branches reflects a fundamental shifts in consumer preferences. Increasingly, individuals are opting to access financial services remotely – whether through online platforms or mobile applications. In response, the banking sector is embracing comprehensive digital development strategies, a trend that spans both established financial institutions and technology-driven financial organizations.
Conventional banking models remain heavily dependent on human labor and manual processes. In contrast, high-tech financial companies are rapidly adopting automation, machine learning, and artificial intelligence (AI) to optimize operations and reduce reliance on manual work. A major challenger to traditional banking institutions is the rapidly expanding fintech sector, which encompasses mobile and internet giants, telecommunication operators, payment service providers, and online platforms. These actors increasingly compete with banks, for customer engagement and market share. Noyably, fintech actors demonstrate greater agility and responseveness to evolving market demands, particularly amid the ongoing global technological transformation. Latest trends in financial technology reveal increasing integration of AI within payment system, notably in fraud detection, personalization and credit scoring, while increasing cashless behavior is correlated with higher economic output. This summary reviews the emergence of AI-driven business models within the payments industry and examines evidence on how Georgia’s transition toward cashless transactions affects GDP.
This article examines the impact of increasing digital integration on a country’s economic well-being, with a particular focus on gross domestic product (GDP). It highlights the payments industry as a pivotal sector for technological adaptation and innovation. The analysis centers on the potential of modern digital payment services, particularly those leveraging artificial intelligence (AI) - to expand financial market activity and foster broader user engagement. Such expansion is anticipated to strengthen the sector’s contribution to GDP and enhance overall economic performance.
The article presents comparative analyses from various countries, underscoring the relationship between GDP and the increasing adoption of non-cash payment methods. Findings from quantitative research conducted in Georgia are analyzed alongside international benchmarks, enabling meaningful conclusions about the role of digital payments in economic development.
The Internet of Things (IoT) is increasingly becoming an urgent need of the modern world. Its impact particularly evident in the financial sector, where innovative, secure, cost-effective, and convenient financial instruments are being deployed to meet everyday consumer needs. Fintech startups are leveraging data-driven and AI-enabled credit scoring systems to expand access to financing alongside payment services. In Georgia, fitnech firms are advancing AI-based credit models to accelerate lending and promote financial inclusion. By incorporating AI into credit underwriting, payment platforms can deliver bundled offerings - combining payments with loans – while unlocking new revenue opportunities.
In the Georgian context, statistical data offer a robust foundation for drawing certain conclusions. Between 2015 and 2023, the number of 2 payment instruments per capita reached two – reflecting increased competition among issuing entities. During this period, card payment volumes grew at an average annual rate of 30%.
A correlation coefficient of R = 0.98, calculated using extrapolation methods, indicates a strong association between card transaction volumes and GDP. Furthermore, the financial and insurance sectors accounted for 5.2% of GDP. Linear regression analysis reveals a similarly strong relationship between these indicators, with a correlation coefficient of 0.99%.
A non-probabilistic panel methodology was employed for the quantitative research component, with the survey distributed via the Google Forms platform. A total of 1679 respondents – representing diverse geographical regions and social strata – participated in the study. The qualitative component utilized in-depth interviews, interviewer observation, and interpretive data analysis as primary methods of inquiry. To construct an econometric model measuring the impact of digitalization on GDP, panel data from 2006-2023 was analyzed across 6 countries: Georgia, Armenia, Azerbaijan, Kazakhstan, Germany, and Poland.
The rapid advancement of artificial intelligence (AI) has unlocked unprecedented opportunities across sectors such as e-commerce, healthcare, and entertainment. The financial sector is no exception – its ongoing transformation through AI integration is poised to yield significant operational and structural benefits.
It is worth emphasizing that higher levels of GDP and economic wealth tend to foster stronger incentives and greater resource allocation toward digital transformation - contributing directly to improvements in the digitalization index.
As economies evolve from developing to developed stages, the demand for cashless payments increases correspondingly. Digital payments have emerged as a global phenomenon, and their benefits must be clearly understood and embraced by governments, corporations and individual users alike.
Notably, the digitalization index, mobile phone penetration, and ICT goods exports exert significant influence on economic outcomes. The findings suggest that strategic investments in digital infrastructure represent a highly effective lever for stimulating economic growth.
Furthermore, the study indicates that the payments industry increasingly targets not only traditional banking sector, but also the burgeoning fintech sector, where consumers demand faster, more affordable, and user-centric financial services.
Drawing on quantitative and qualitative research involving industry specialists and regulators, as well as mathematical modeling, the article establishes a direct proportional relationship between the digitization of payments and gross domestic product.
The insights presented serve as a valuable literary source for researchers examining digital transactions, particularly digital payment systems, and offer relevant context for those interested in this field.

Keywords: Payment industry, gross domestic product (GDP), artificial intelligence, digital banking, cryptocurrencies, payment systems, platforms, providers, digital trust index, digitalization.
JEL Codes: E42, E44, O33, O38, G21, G23, G28

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