Open Access Journal Article

How Shopping Platforms Play a Role in the Credit Card Industry

by Sipeng Zeng a,* orcid
a
Shanghai Jiao Tong University, 800 Dongchuan Road, Minhang District, Shanghai, 200240, China
*
Author to whom correspondence should be addressed.
FEL  2024, 27; 3(2), 27; https://doi.org/10.58567/fel03020002
Received: 5 March 2024 / Accepted: 12 March 2024 / Published Online: 14 March 2024
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Abstract

We develop a four-party model involving banks, merchants, consumers, and platform firms to explain why large shopping malls can offer interest-free installment services to consumers. Using a collaboration between an online shopping platform firm and multiple banks to issue co-branded credit cards as a natural experiment, we find that consumers’ spending on the platform fulfills the requirements for merchants and banks to choose a four-way model. This study highlights the pivotal role of platform firms in the credit card market.

Keywords: Credit card; Platform enterprise; Interest-free installment; Consumption;
Copyright: © 2024 by Zeng. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

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ACS Style
Zeng, S. How Shopping Platforms Play a Role in the Credit Card Industry. Financial Economics Letters, 2024, 3, 27. https://doi.org/10.58567/fel03020002
AMA Style
Zeng S. How Shopping Platforms Play a Role in the Credit Card Industry. Financial Economics Letters; 2024, 3(2):27. https://doi.org/10.58567/fel03020002
Chicago/Turabian Style
Zeng, Sipeng 2024. "How Shopping Platforms Play a Role in the Credit Card Industry" Financial Economics Letters 3, no.2:27. https://doi.org/10.58567/fel03020002
APA style
Zeng, S. (2024). How Shopping Platforms Play a Role in the Credit Card Industry. Financial Economics Letters, 3(2), 27. https://doi.org/10.58567/fel03020002

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