Does mobile payment adoption really increase online shopping expenditure in China: A gender-differential analysis

Mobile payments are ubiquitous in China and facilitate myriads of offline and online transactions daily. However, little is known about the spending effects of mobile payment adoption. Accordingly, this study is devoted to examining the effects of mobile payment adoption on household online shopping expenditure. Focusing on gender differentials, we analyze the 2017 Chinese General Social Survey data using the instrumental-variable-based Tobit model. Our results show that mobile payment adoption significantly increases household online shopping expenditure for females, while it does not affect online shopping expenditure for males—the spending effects of mobile payment adoption are not gender-neutral. Thus, gender-specific promotional strategies and initiatives may help increase mobile payment adoption and boost online shopping. The positive spending effect of mobile payment adoption on households’ online shopping points to synergies between mobile payment and e-commerce platforms. Policymakers should consider regulations that encourage the integration of these platforms and, at the same time, foster innovation and competition in the industry.