Thursday
August 13
2020

Viewpoint: How Mobile Wallets Fend Off Economic Shocks

By Surbhi Bhatia

Mobile-based payments gained sudden popularity within days after India’s decision to demonetize high-value currency notes in 2016. The transaction patterns in the following months are the subject of a new research, which has found that using mobile money can protect companies as well as families against economic shocks.

In a working paper for the International Monetary Fund, researchers Manasa Patnam and Weijia Yao study transactions on mobile wallet firm Paytm and link them with economic conditions. Satellite data on night-lights and government workforce estimates serve as proxies for economic activity, and rainfall data are considered as an indicator of economic shocks.

Photo courtesy of Jan Arendtsz.

Source: Livemint (link opens in a new window)

Categories
Finance, Technology
Tags
digital finance, digital payments, emerging markets, mobile finance, mobile money