Discussion paper

DP17297 Big techs, QR code payments and financial inclusion

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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Citation

Beck, T, L Gambacorta, Y Huang, Z Li and H Qiu (eds) (2022), “DP17297 Big techs, QR code payments and financial inclusion”, CEPR Press Discussion Paper No. 17297. https://cepr.org/publications/dp17297