Working Paper: CEPR ID: DP17297
Authors: 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.
Keywords: big tech; big data; qr code; banks; asymmetric information; financial inclusion; credit markets
JEL Codes: D22; G31; R30
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| QR codes (Y10) | access to big tech credit (G21) |
| access to big tech credit (G21) | access to bank credit (G21) |
| QR codes (Y10) | access to bank credit (G21) |
| access to big tech credit (G21) | business volume (M21) |