Arbeitspapier
Payment Fintechs and Debt Enforcement
Payment fintechs, acting as lenders, possess a potential solution to weak debt enforcement because of their ability to deduct a part of a merchant's digital sales towards loan repayment. Analyzing payments processed by an Indian fintech company offering sales-linked loans, we find that some borrowers discontinuously reduce sales flowing through the company immediately after the loan disbursal to circumvent repayment and strategically default. Using credit bureau scores sourced independently and the spatial and temporal heterogeneity in cash availability generated by a cash-crunch episode, we find that competition from other lenders and cash limits the effectiveness of this enforcement technology
- Sprache
-
Englisch
- Erschienen in
-
Series: WWZ Working Paper ; No. 2021/02
- Klassifikation
-
Wirtschaft
Financial Institutions and Services: General
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
- Thema
-
Fintech lending
limited enforcement
sales manipulation
regression discontinuity
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Rishabh, Kumar
Schäublin, Jorma
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Basel, Center of Business and Economics (WWZ)
- (wo)
-
Basel
- (wann)
-
2021
- DOI
-
doi:10.5451/unibas-ep84387
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Rishabh, Kumar
- Schäublin, Jorma
- University of Basel, Center of Business and Economics (WWZ)
Entstanden
- 2021
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