By Li Yifei, Research Institute of Economics, Management World Magazine, Yin Zhichao & Gong Xue, Capital University of Economics and Business, Lu Xiaomeng, Southwestern University of Finance and Economics

Research Report, No. 119, 2020 (Total 5863) 2020-5-21

Abstract: Consumption upgrading is an important driving force for high-quality development of China’s economy. Based on survey data of China’s household consumption respectively in 2017 and 2019, this paper analyzes the impacts of mobile payment on household consumption and upgrading. The research findings show that featured by easy payment with low costs, mobile payment has promoted the increase of household spending and diversified the modes of household consumption, leading to the upgrading of household consumption structure. Further analyses show that mobile payment can boost consumption desire of low- and middle-income households and those in rural areas. Policy options are raised as follows. We need to bring the advantages of mobile payment into full play to promote economic transformation, improve the environment of mobile payment transaction, reduce transaction costs of mobile payment, continue to improve the regulatory framework and focus on addressing risks of various industrial sectors in the era. Efforts need to be made to give full play to the role of mobile payment in rural areas, further narrow urban and rural gap and enrich people’s knowledge on financial affairs.

Keywords: mobile payment, consumption upgrading, diversified modes of consumption