Research On The Effects Of Mobile Payment On Chinese Household Financial Decisions

In the context of insufficient traditional financial supply,rapid popularization of smartphones and relatively inclusive regulatory environment,the use scope and audience of mobile payment in China have been rapidly expanded,which has brought a significant impact on household financial decisions.Relying on the characteristics of convenient payment,reducing transaction costs,and effectively serving long-tail customers that traditional finance cannot cover,mobile payment breaks the limitations of time and space in traditional transaction.It provides the possibility of new business models such as online transactions,realizes rapid conversion between different stratas of currencies.As a result,mobile payment provides support for entrepreneurship,enriches households' consumption patterns and choices,and changes the households'money holding.By analyzing the impact of mobile payment on household financial decisions and exploring the mechanism of such impacts,we can provide a new perspective for better promoting "mass entrepreneurship and innovation",looking for the driving force of consumption growth and upgrading,and understanding the change of Chinese household money demand,which can provide reference for relevant policy formulation.Based on this background,this paper uses the data of the 2017 China Household Finance Survey to deeply analyze the impacts of mobile payment on household entrepreneurship,consumption and money demand through theoretical analysis and empirical strategy.In the theoretical model,by introducing mobile payment into the model,it can be found that mobile payment alleviates the inhibition effect of credit constraints on entrepreneurship and loosens the access restrictions of the entrepreneurial market by reducing costs.Since mobile payment reduces transaction costs and provides financial products with high yield while guaranteeing liquidity,after introducing mobile payment into the Baumol-Tobin model,it can be found that the use of mobile payment reduces households' money demand of different strata.The empirical results mainly include the following findings:Firstly,mobile payment significantly increases the probability of household entrepreneurship and enhances business performance.Moreover,it plays a greater role in promoting entrepreneurship activities of households with high start-up costs and credit constraints.Furthermore,mobile payment improves the probability of enterprises'innovative activities,it also increases the probability of household initiative entrepreneurship.Mobile payment has a greater positive effect on households'entrepreneurship decision-making in relatively backward areas and micro-enterprises,and it significantly improves possibility of entrepreneuship and the business performance of daily consumption industry.Secondly,mobile payment has significantly increased the consumption expenditure of the household,reduced the household engel coefficient by 12.34%,and enriched the consumption categories of the household.This indicates that the use of mobile payment not only helps to promote the consumption growth,but also optimizes the consumption structure of the household.Furthermore,mobile payment has a greater impact on consumption expenditure in relatively backward regions.It plays an important role in unleashing the consumption potential of low-income groups.Thirdly,mobile payment reduces the money demand of households at different strata,making the proportion of Mo,M1 and M2 of households drop by 23.60%,34.33%and 21.10%respectively.As a digital inclusive financial instrument,mobile payment has a greater impact on the household money demand in regions with backward infrastructure construction and with low educational level.Further analysis shows that mobile payments affect households'cash demand mainly by reducing transaction costs.Quantile regression results show that the effect of mobile payment on the preventive money demand is greater than that of transaction money demand.This paper provides new evidence for understanding the effects of mobile payment on Chinese household financial decisions and provides reference for relevant policy formulation.