Financial Technology Adoption: Network Externalities of Cashless Payments in Mexico.

Do coordination failures constrain financial technology adoption? Exploiting the Mexican government's rollout of 1 million debit cards to poor households from 2009 to 2012, I examine responses on both sides of the market and find important spillovers and distributional impacts. On the supply side, s...

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Publicado en:American Economic Review Vol. 114; no. 11; pp. 3469 - 3513
Autor principal: Higgins, Sean
Formato: Artículo
Publicado: American Economic Association Nov2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Nov2024
      vid: 114
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      pub: American Economic Association
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        10.1257/aer.20201952
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        atl: Financial Technology Adoption: Network Externalities of Cashless Payments in Mexico.
      aug:
        au: Higgins, Sean
        affil: Department of Finance, Kellogg School of Management, Northwestern University
      su:
        Supply & demand
        Innovation adoption
        Financial technology
        Point-of-sale systems
        Electronic funds transfers
        Debit cards
      sug:
        subj:
          Supply & demand
          Innovation adoption
          Other financial transactions processing and clearing house activities
          Financial Transactions Processing, Reserve, and Clearinghouse Activities
          Computer and peripheral equipment manufacturing
          Computer Terminal and Other Computer Peripheral Equipment Manufacturing
          Financial technology
          Point-of-sale systems
          Electronic funds transfers
          Debit cards
      ab: Do coordination failures constrain financial technology adoption? Exploiting the Mexican government's rollout of 1 million debit cards to poor households from 2009 to 2012, I examine responses on both sides of the market and find important spillovers and distributional impacts. On the supply side, small retail firms adopted point-of-sale terminals to accept card payments. On the demand side, this led to a 21 percent increase in other consumers' card adoption. The supply-side technology adoption response had positive effects on both richer consumers and small retail firms: richer consumers shifted 13 percent of their supermarket consumption to small retailers, whose sales and profits increased. (JEL E42, L25, L81, O14, O33)
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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