Big techs, QR code payments and financial inclusion

Thorsten Beck, Leonardo Gambacorta, Yiping Huang, Zhenhua Li and Han Qiu

No 1011, BIS Working Papers from Bank for International Settlements

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.

Keywords: big tech; big data; QR code; banks; asymmetric information; financial inclusion; credit markets. (search for similar items in EconPapers)
JEL-codes: D22 G31 R30 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2022-05
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-cna, nep-fdg and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Working Paper: Big techs, QR code payments and financial inclusion (2022)
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