Impact of payment technology innovations on the traditional financial industry: A focus on China

This study adopts the Vector Auto-Regression (VAR) impulse response model to analyze the impact of Internet Third-Party Payment (TPP) on the traditional financial industry from 2007 to 2014. The empirical results suggest that in China, third-party payments have had a significant positive correlation with the value creation capabilities of traditional financial industries, and that this relationship tends to remain in a steady state in the long term. Based on these findings, this paper confirms that the technological innovation of methods of payment in emerging economies, such as China, has promoted the development of the financial industry and accelerated the process of industrial evolution. We conclude the paper with feasible policy suggestions.
Source: Technological Forecasting and Social Change - Category: Science Source Type: research
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