Big techs, QR code payments and financial inclusion

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

No 17297, CEPR Discussion Papers from C.E.P.R. Discussion Papers

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)
Date: 2022-05
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