The Rise of E-Wallet Super-Apps and Buy-Now-Pay-Later

Abstract

The rise of super-app e-wallets provides not only conduits to banks but also internal payment options, including Buy-Now-Pay-Later (BNPL). We examine, for the first time, transactions with merchant and consumer information, from a leading e-wallet, and complement the analyses with randomized experiments. We document that a popular form of BNPL constitutes the dominant “digital cash,” and expands payment and credit access to underserved consumers without increasing indebtedness or delinquencies. Our findings underscore the cross-sale capacity and inherent disciplinary incentives of super-app ecosystems, offering insights for economies transitioning to cashless via super-app-driven platforms, where FinTech credit grows the most. 

Keywords: Cashless, Consumer Credit, FinTech, Financial Inclusion, Mobile Wallet, Payments, China

JEL Classification: E42,G20, G23, G51