Discussion Paper Details

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Title: Big techs, QR code payments and financial inclusion

Author(s): Thorsten Beck, Leonardo Gambacorta, Yiping Huang, Zhenhua Li and Han Qiu

Publication Date: May 2022

Keyword(s): Asymmetric information, banks, Big Data, big tech, credit markets, financial inclusion and QR code

Programme Area(s): Financial Economics

Abstract: Using a unique dataset of around half a million Chinese firms that use a QR code-based mobile payment system, we find that (i) the creation of a digital payment footprint allows firms to access credit provided by the same big tech company; (ii) transaction data generated via QR code generate spillover effects on access to bank credit; and (iii) there are positive effects of access to big tech credit on sales, including during the Covid-19 shock. The findings suggest that access to innovative payment methods helps micro firms build up credit history, and that using big tech credit can ease access to bank credit.

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Bibliographic Reference

Beck, T, Gambacorta, L, Huang, Y, Li, Z and Qiu, H. 2022. 'Big techs, QR code payments and financial inclusion'. London, Centre for Economic Policy Research.