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Mobile Payment in China: Practice and Its Effects

Author

Listed:
  • Yiping Huang

    (National School of Development / Institute of Digital Finance Peking University)

  • Xue Wang

    (National School of Development / Institute of Digital Finance Peking University)

  • Xun Wang

    (National School of Development / Institute of Digital Finance Peking University)

Abstract

This paper offers a comprehensive review and careful assessment of China's mobile payment business. With broad access, low costs, and reliable transactions, mobile payments are creating a revolution of financial inclusion, changing people's daily lives and commercial business models. This study also confirms that mobile payment improves risk sharing among individuals and increases entrepreneurial opportunities. These mobile payment successes can be traced to three key factors: supply shortages of alternative payment services, a friendly regulatory environment, and recent technological developments. A number of outstanding issues remain, however, including data ownership, data inequality, and regulatory shortcomings.

Suggested Citation

  • Yiping Huang & Xue Wang & Xun Wang, 2020. "Mobile Payment in China: Practice and Its Effects," Asian Economic Papers, MIT Press, vol. 19(3), pages 1-18, Fall.
    • Handle: RePEc:tpr:asiaec:v:19:y:2020:i:3:p:1-18
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    4. Hongyun Zheng & Wanglin Ma, 2022. "Scan the QR Code of Happiness: Can Mobile Payment Adoption Make People Happier?," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 17(4), pages 2299-2310, August.
    5. Zhu, Jialiang & Liu, Yun & Fang, Ying, 2023. "A blessing in disguise—The effect of China’s Covid-19 health code system on older people’s mobile payment usage," Finance Research Letters, Elsevier, vol. 53(C).
    6. Weisong Qiu & Tieqi Wu & Peng Xue, 2022. "Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China," IJERPH, MDPI, vol. 19(18), pages 1-15, September.
    7. Mohamed, Abdinur Ali, 2023. "The influence of the mobile money payment on the performance of small and medium enterprises in Somalia," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    8. Zhao, Chunkai & Wang, Yuhang & Ge, Zhenyu, 2023. "Is digital finance environmentally friendly in China? Evidence from shared-bike trips," Transport Policy, Elsevier, vol. 138(C), pages 129-143.
    9. Yang, Wei & Vatsa, Puneet & Ma, Wanglin & Zheng, Hongyun, 2023. "Does mobile payment adoption really increase online shopping expenditure in China: A gender-differential analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 99-110.
    10. Fodouop Kouam Arthur William, 2022. "China’s mobile payment: lessons for African countries," International Journal of Science and Business, IJSAB International, vol. 15(1), pages 87-93.

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