Demographics and Technology Diffusion: Evidence from Mobile Payments

Nicolas Crouzet, Pulak Ghosh, Apoorv Gupta and Filippo Mezzanotti

No 34885, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We show that the age composition of the population can shape the speed at which businesses adopt new technologies, using evidence from mobile payments in India. Consumers' propensity to use new payment technologies declines with age, creating stronger incentives for businesses serving younger customers to accept these technologies. We document this pattern in the rollout of a mobile payment option by a major fintech company. A model where consumer attitudes toward technology vary by age implies that business adoption is inefficiently low, with the young bearing disproportionate welfare losses from network externalities. Jointly subsidizing transaction and adoption costs restores efficiency.

JEL-codes: G23 J11 O33 (search for similar items in EconPapers)
Date: 2026-02
Note: AG CF EFG PR
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