The DigiPay4growth project showcased in 4 pilots: purchasing power channeled via a digital payment system (Cyclos) towards SME’s in the regional/local economy, is effective!
12,000 participating SMEs benefitted from 7 million credit, €140,000 additional turnover and purchasing power moving 5 times quicker than the Euro.
These results were realized in 4 pilots by DigiPay4Growth partners in Sardinia (Sardex network, Italy ) Santa Coloma (Catalonia), Bristol (Bristol Pound, UK) and various locations in the Netherlands.
In Sardinia the Sardex network currently has more than 4000 small business members benefitting from approximately 20% increase in yearly turnover, and 65% decrease in loan defaults. Together, these 4000 businesses added 40% to the overall economic growth of Sardinia in 2016. Sardex implemented Cyclos4Pro during the DigiPay project (2014-2016). More information: www.sardex.net
In Santa Coloma it was shown that subsidies and civil servants’ salaries can be channeled through Cyclos. Inspired by the Santa Coloma pilot, the city of Barcelona will also implement a digital currency system.
Bristol pilot shows that Cyclos can facilitate the payment of local taxes and services from local government, but also transport such as bus and trains. In total €1,18m of government expenditures has been channeled through Cyclos during the project period.
Pilots in the Netherlands showed that business network approaches can be successfully integrated with DigiPay4Growth.
For detailed information about the DigiPay innovation, please read the information below and download the manual.
The DigiPay4Growth project applies an innovative Digital Payment System, Cyclos, to channel inflows of purchasing power from various sources towards SMEs in the regional/local economy. The DigiPay4Growth was financed by the European Commission from 2014-2016, and still running on the personal initiative of the pilot projects. It is a new approach that boosts regional/local development and represses unemployment. In the DigiPay4Growth Digital Payments channeled through a business network to stimulate local/regional economic growth through 2 innovations.
- Conditioning (government) expenditures in order to have a positive increase of the local /regional multiplier effect of such expenditures.
- Providing counter cyclical credit to SMEs, called Social Trade Credit. Those economic actors that benefit from the inflow of credit within a specific supply chain, contribute to the cost of credit risk.
Benefits for different stakeholders
FOR SME’S AND LOCAL BUSINESSES
- Cheap credit for start-ups and SMEs
- Encourage cooperation between companies in need of clients and companies in need of credit
- Generate new clients for suppliers in the supply chain and subsequently increase their sales
- Marketplace for surplus spare capacities
- Trade that supports the values of a community.
- More local jobs
- Helps communities to play a fundamental role in the development of a healthy and sustainable local economy.
- More social capital and cohesion
FOR LOCAL GOVERNMENTS
- Strengthen local economy in order to provide additional opportunities for people to develop their entrepreneurial talents.
- Immediate payment of invoices of government suppliers in a network that supports cooperation between these suppliers.
- Boost the SMEs in local economy to create growth in the sector.
- Increase the multiplier effect of expenditures
- Increase local (youth)
FOR LOCAL CONSUMERS
- Support your local economy/community with your purchasing power.
- Ensure that your favorite local shops remains open.
- Has different buying options and not just one of a big supermarket chain
- Have a closer relationship with the producers
- Be a conscious consumer