Cashless Payment and Financial Inclusion

Shumiao Ouyang (Saïd Business School - University of Oxford)

March 1, 2024, 14:00–15:15


Room Auditorium 4

Finance Seminar


This paper investigates how cashless payment affects credit access for the underprivileged using Alipay, a BigTech platform that offers various financial services to over 1 billion users. Leveraging a natural experiment and a representative Alipay user sample, I find that cashless payment adoption increases credit access by 56.3% and a 1% rise in payment flow increases credit line by 0.41%. These effects are stronger for the less educated and the older. Counterfactual analysis shows that cashless payment data increase credit lines by 57.7%, consumer surplus by 0.5% of median income, and lender profit by 41.3% of consumer surplus.


Cashless Payment, BigTech, Consumer Credit, Financial Inclusion, Technology Adoption;

JEL codes

  • G21: Banks • Depository Institutions • Micro Finance Institutions • Mortgages
  • G23: Non-bank Financial Institutions • Financial Instruments • Institutional Investors
  • G51:
  • O33: Technological Change: Choices and Consequences • Diffusion Processes