Unveiling Inequalities in Consumer Credit and Payments

March–April 2024

Inequality in consumer credit and payments is an important element of the broader economic and finance literature, reflecting the intersection of market mechanisms, regulatory environments, and socioeconomic disparities. Robust markets for consumer credit and payments are essential contributors to a thriving economy; however, the benefits and burdens from participating (or not) in these markets are not shared equally.

With improvements in the granularity of available data, researchers have demonstrated that access to, and the terms of, consumer credit and payments are not uniformly distributed across different segments of society. In turn, inequality in access and outcomes has important implications for financial stability, economic mobility, and the overall well-being of individuals and communities. This special issue on Inequality in Consumer Credit and Payments features new empirical and theoretical studies that offer insights into the challenges at play and the potential policy responses that might mitigate them.

Read the full article on the Journal of Economics and Business site.