This study investigates the influence of mobile payment application use on crime rates. Using a
unique database of verdicts from criminal courts in China and an index measuring the extent of
mobile payment usage, we find that a one standard deviation increase in mobile payment adoption
and usage leads to an 11% decrease in the theft rate. Furthermore, the effect of widespread mobile
payment adoption on theft rates is more pronounced in areas characterized by a higher prevalence
of cash transactions. These findings suggest that the decrease in cash circulation in society due to
mobile payment use can reduce incentives for theft. However, we do not find evidence linking
mobile payment usage to other types of criminal activity, including robbery, arson, brawling,
homicide, and serious injury by vehicle.
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