Abstract: 

Despite considerable global investment in programs to incentivize digital payment adoption among small retail merchants (Alper, Pinar and Marin Espinosa, 2020; Mastercard, 2020), rigorous evidence on program returns remains sparse. We conduct a large-scale randomized evaluation of “push-marketing” policy programs—co-designed with government and private-sector partners—that o!er technology grants, B2C marketing support, and extra financial incentives to small retail merchants in Guadalajara, Mexico. Two years post-intervention, we find significant improvements in sales and profits across treatment groups. Mechanism analyses show that performance gains stem from three channels: (1) an upgraded customer base, including more lucrative segments; (2) increased working capital from reduced diversions and better access to formal banking; and (3) spillovers to usage of other digital tools for customer outreach. Our findings underscore how well-designed push-marketing programs can yield substantial performance gains for small retailers, informing ongoing debates on how best to accelerate payment digitization in developing economies.

If you wish to attend, please email dip.mkt@unibocconi.it