Businesses that receive electronic payments were less likely to face severe credit constraints in a World Bank analysis of nearly 50,000 firms across 101 economies, with the association strongest among firms that are harder for lenders to assess.
The researchers estimated that firms receiving electronic payments were about three percentage points less likely to be fully credit constrained. Across the sample, about 15% of firms fell into that category, according to the World Bank’s account of the research.
The study identifies a relationship, not a promise that installing a payment terminal will produce a loan. It also raises a question for small businesses and lenders: can records created during ordinary sales help finance reach firms with limited formal financial histories?
The issue was discussed again at the World Bank’s October 2026 annual meetings. President Ajay Banga said the institution was working on evidence for cash-flow lending backed by digital data, while noting that very early-stage entrepreneurs may need equity rather than debt.
Sales leave a financial trail
A lender deciding whether to extend credit must assess whether a borrower can repay. Larger companies may have audited accounts and established borrowing histories. A young retailer or service business may have fewer formal records, even when its customers pay regularly.
Electronic receipts can create a record of transaction amounts and timing. Bank transfers, mobile money and other digital payments may help demonstrate sales and cash flow, provided the firm can access and share those records with a lender under appropriate safeguards.
In the World Bank analysis, the association concerned receiving payments electronically. Making payments electronically did not show the same relationship. The authors suggest incoming transactions may convey more information about a firm’s revenue than outgoing transactions.
The researchers used Enterprise Surveys and business-environment data, examining firms surveyed since 2021. Their credit-constraint measure draws on firms’ borrowing behavior and outcomes. It is not simply a count of rejected applications.
Small firms show a stronger association
The relationship was stronger among small and young firms, less productive firms and those without audited statements. It was also more pronounced where credit information systems and financial infrastructure were weaker, the authors report.
That pattern is consistent with electronic records being especially helpful when conventional information is scarce. The analysis does not establish that lenders actually used the transaction histories in every credit decision, or that the same result will apply to a particular borrower.
A company accepting digital payments may differ from a cash-only business in many other ways. Location, customer base, recordkeeping and access to banking can all matter. The estimated three-percentage-point gap should not be treated as the expected benefit for every firm.
What a business should check
For a small business, digital acceptance has costs as well as possible benefits. Equipment, transaction fees, settlement times, internet reliability and fraud controls all affect whether a payment service is worthwhile. A record of sales is also different from profit: expenses and other obligations still determine how much cash is available for repayment.
Businesses considering sharing transaction data should check what information a lender can access, for how long, and whether permission can be withdrawn. The World Bank authors recommend privacy safeguards alongside better payment and credit infrastructure.
Our earlier reporting on the costs of business data sharing examined the work needed to maintain access and trust after a service is connected. For lending, usable records must reach the right institution without exposing a firm to unnecessary data risks.
Better records may help lenders assess a viable business, but they do not replace affordable loan terms, suitable collateral arrangements or sufficient customer demand. For an entrepreneur still developing a product, the appropriate financing may be investment capital rather than a loan that requires repayment before sales begin.
