Template-Type: ReDIF-Paper 1.0
Author-Name: Thorsten Beck
Author-X-Name-First: Thorsten
Author-X-Name-Last: Beck
Author-Name: Leonardo Gambacorta
Author-X-Name-First: Leonardo
Author-X-Name-Last: Gambacorta
Author-Name: Yiping Huang
Author-X-Name-First: Yiping 
Author-X-Name-Last: Huang
Author-Name: Zhenhua Li
Author-X-Name-First: Zhenhua 
Author-X-Name-Last: Li
Author-Name: Han Qiu
Author-X-Name-First: Han 
Author-X-Name-Last: Qiu
Title: Big techs, QR code payments and financial inclusion
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.  
Length: 47 pages
Creation-Date: 2022-05
File-URL: https://www.bis.org/publ/work1011.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1011.htm
File-Format: text/html
Number: 1011
Keywords: big tech, big data, QR code, banks, asymmetric information, financial inclusion, credit markets.
Classification-JEL: D22, G31, R30.
Handle: RePEc:bis:biswps:1011