Mobile Wallet and Entrepreneurial Growth
30 Pages Posted: 27 Dec 2018
Date Written: December 9, 2018
Using mobile wallet and card transaction data from a leading Singapore bank, this paper studies the effect of a mobile wallet payment technology introduction in 2017 on business growth. We find the mobile wallet usage doubled after the new technology introduction, and the improved payment convenience generated a significant spillover effect. Small merchants experienced a monthly increase in debit and credit card sales amount (count) of 3.5 percent (3.4 percent) compared to large merchants. The payment technology promoted sales growth primarily for new businesses by facilitating customer acquisition.
Keywords: mobile wallet, cashless payment, entrepreneurship, small business, sales growth, credit card, debit card, banking, fintech, digital economy
JEL Classification: D12, D14, E21, G21
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