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Big techs, QR code payments and financial inclusion

Author

Listed:
  • Thorsten Beck
  • Leonardo Gambacorta
  • Yiping Huang
  • Zhenhua Li
  • Han Qiu

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.

Suggested Citation

  • Thorsten Beck & Leonardo Gambacorta & Yiping Huang & Zhenhua Li & Han Qiu, 2022. "Big techs, QR code payments and financial inclusion," BIS Working Papers 1011, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:1011
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    Cited by:

    1. Cuadros-Solas, Pedro J. & Cubillas, Elena & Salvador, Carlos, 2023. "Does alternative digital lending affect bank performance? Cross-country and bank-level evidence," International Review of Financial Analysis, Elsevier, vol. 90(C).
    2. Ozili, Peterson K, 2024. "Digital Innovations for Increasing Financial Inclusion: CBDC, Cryptocurrency, Embedded finance, Artificial Intelligence, WaaS, Fintech, Bigtech, and DeFi," MPRA Paper 121848, University Library of Munich, Germany.
    3. Gambacorta, Leonardo & Madio, Leonardo & Parigi, Bruno, 2023. "Platform Lending and Innovation," CEPR Discussion Papers 18622, C.E.P.R. Discussion Papers.
    4. Ozili, Peterson K, 2023. "Benefits of digital-only financial inclusion," MPRA Paper 118796, University Library of Munich, Germany.
    5. Dong, Yingwei & Gou, Qin & Qiu, Han, 2023. "Big tech credit score and default risk ——Evidence from loan-level data of a representative microfinance company in China," China Economic Review, Elsevier, vol. 81(C).
    6. Yiping Huang & Xiang Li & Han Qiu & Changhua Yu, 2023. "Big tech credit and monetary policy transmission: micro-level evidence from China," BIS Working Papers 1084, Bank for International Settlements.
    7. Doerr, Sebastian & Frost, Jon & Gambacorta, Leonardo & Shreeti, Vatsala, 2023. "Big techs in finance," CEPR Discussion Papers 18665, C.E.P.R. Discussion Papers.
    8. Huang, Yiping & Li, Xiang & Qiu, Han & Su, Dan & Yu, Changhua, 2024. "Bigtech credit, small business, and monetary policy transmission: Theory and evidence," IWH Discussion Papers 18/2022, Halle Institute for Economic Research (IWH), revised 2024.
    9. Agustín Carstens & Nandan Nilekani, 2024. "Finternet: the financial system for the future," BIS Working Papers 1178, Bank for International Settlements.
    10. Ayatulloh Michael Musyaffi & Razana Juhaida Johari & Christian Wiradendi Wolor & Amer Azlan Abdul Jamal & Anaya Zahra Santika & Muhammad Arifsyah Arifi, 2023. "The Innovativeness and Value of Quick Response Code Payment for MSMEs: The Influence of Security-Related Factor," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 89-107.

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    More about this item

    Keywords

    big tech; big data; QR code; banks; asymmetric information; financial inclusion; credit markets.;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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