A Study of the Impact of Mobile Payment on the Enhancement of Consumption Structure and Pattern of Chinese Rural Households

Abstract

Amidst China’s economic transition towards high-quality development, the latent potential of the rural consumer market has been significantly unlocked, rendering the evolution of rural household consumption patterns a pivotal area of research. In this paper, we empirically investigate the influence of mobile payment on the transformation of consumption patterns within Chinese rural households, utilizing data from the China Household Finance Survey 2017 and China Household Finance Survey 2019. This study’s findings reveal the following key points: Firstly, mobile payment significantly contributes to the enhancement of the consumption structure within rural households. Secondly, the mechanistic analysis demonstrates that mobile payment plays a pivotal role in alleviating mobility constraints and optimizing the consumption environment, thereby facilitating the improvement of rural households’ consumption patterns. Lastly, the heterogeneity analysis indicates that mobile payment has a more pronounced effect on the upgrading of consumption structures among rural households with older household heads and higher education levels. In light of these findings, this paper suggests advancing the development of mobile payment infrastructure in rural areas, enhancing the proliferation of smartphones in rural regions, and bolstering financial education initiatives within rural communities.