TY - BOOK ID - 133611950 TI - The Real Effects of Mobile Money: Evidence from a Large-Scale Fintech Expansion AU - Patnam, Manasa. AU - Yao, Weijia. PY - 2020 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Money and Monetary Policy KW - Industries: Financial Services KW - Mobile and Wireless Communications KW - Financial Institutions and Services: General KW - Banks KW - Depository Institutions KW - Micro Finance Institutions KW - Mortgages KW - Firm Performance: Size, Diversification, and Scope KW - Telecommunications KW - Information and Internet Services KW - Computer Software KW - Economic Development: Financial Markets KW - Saving and Capital Investment KW - Corporate Finance and Governance KW - Technological Change: Choices and Consequences KW - Diffusion Processes KW - Monetary Systems KW - Standards KW - Regimes KW - Government and the Monetary System KW - Payment Systems KW - Innovation KW - Research and Development KW - Technological Change KW - Intellectual Property Rights: General KW - Microelectronics KW - Computers KW - Communications Equipment KW - Computer applications in industry & technology KW - Technology KW - general issues KW - WAP (wireless) technology KW - Monetary economics KW - Banking KW - Mobile banking KW - Mobile internet KW - Currency reform KW - Money KW - Fintech KW - Banks and banking, Mobile KW - Wireless Internet KW - Banks and banking KW - Financial services industry KW - Technological innovations KW - India UR - https://www.unicat.be/uniCat?func=search&query=sysid:133611950 AB - Mobile money services have rapidly expanded across emerging and developing economies and enabled new ways through which households and firms can conduct payments, save and send remittances. We explore how mobile money use can impact economic outcomes in India using granular data on transactions from Paytm, one of the largest mobile money service provider in India with over 400 million users. We exploit the period around the demonetization policy, which prompted a surge in mobile money adoption, and analyze how mobile money affects traditional risk-sharing arrangements. Our main finding is that mobile money use increases the resilience to shocks by dampening the impact of rainfall shocks on nightlights-based economic activity and household consumption. We complement these findings by conducting a firm survey around a phased targeting intervention which incentivized firms to adopt the mobile payment technology. Our results suggest that firms adopting mobile payments improved their sales after six-months of use, compared to other firms. We also elicit firms’ subjective expectations on future sales and find mobile payment adoption to be associated with lower subjective uncertainty and greater sales optimism. ER -