Abstract
| Original language | English |
|---|---|
| Place of Publication | Tilburg |
| Publisher | CentER, Center for Economic Research |
| Number of pages | 73 |
| Volume | 2019-032 |
| Publication status | Published - 6 Nov 2019 |
Publication series
| Name | CentER Discussion Paper |
|---|---|
| Volume | 2019-032 |
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Keywords
- SME Finance
- Transparency
- payment technologies
- Lipa Na M-Pesa
Cite this
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Transparency and Financial Inclusion : Experimental Evidence from Mobile Money (revision of CentER DP 2018-042). / Dalton, Patricio; Pamuk, H.; Ramrattan, R.; van Soest, Daan; Uras, Burak.
Tilburg : CentER, Center for Economic Research, 2019. (CentER Discussion Paper; Vol. 2019-032).Research output: Working paper › Discussion paper › Other research output
TY - UNPB
T1 - Transparency and Financial Inclusion
T2 - Experimental Evidence from Mobile Money (revision of CentER DP 2018-042)
AU - Dalton, Patricio
AU - Pamuk, H.
AU - Ramrattan, R.
AU - van Soest, Daan
AU - Uras, Burak
N1 - CentER Discussion Paper Nr. 2019-032
PY - 2019/11/6
Y1 - 2019/11/6
N2 - Electronic payment instruments have the potential to spur the transparency of business transactions and thereby reduce information frictions. We design a field experiment to understand whether e-payments facilitate the financial inclusion of SMEs in developing world and to study adoption barriers. We encourage a random sample of Kenyan merchants to adopt a new mobile-money payment instrument and find that the decision to adopt is hampered by the combination of information, know-how and seemingly small transaction costs barriers. In addition, we nd that business owners who are more averse to transparency are more reluctant to adopt. Sixteen months after the intervention, we observe that treated firms have better access to finance in the form of mobile loans. The impact on financial access is more pronounced for smaller establishments, which also experience a considerable reduction in sales volatility. We conclude that e-payments can help un-collateralized firms become transparent and get financially integrated.
AB - Electronic payment instruments have the potential to spur the transparency of business transactions and thereby reduce information frictions. We design a field experiment to understand whether e-payments facilitate the financial inclusion of SMEs in developing world and to study adoption barriers. We encourage a random sample of Kenyan merchants to adopt a new mobile-money payment instrument and find that the decision to adopt is hampered by the combination of information, know-how and seemingly small transaction costs barriers. In addition, we nd that business owners who are more averse to transparency are more reluctant to adopt. Sixteen months after the intervention, we observe that treated firms have better access to finance in the form of mobile loans. The impact on financial access is more pronounced for smaller establishments, which also experience a considerable reduction in sales volatility. We conclude that e-payments can help un-collateralized firms become transparent and get financially integrated.
KW - SME Finance
KW - Transparency
KW - payment technologies
KW - Lipa Na M-Pesa
M3 - Discussion paper
VL - 2019-032
T3 - CentER Discussion Paper
BT - Transparency and Financial Inclusion
PB - CentER, Center for Economic Research
CY - Tilburg
ER -