Promoting Digital Transformation in Times of Crisis: A Comparative Analysis of Technology Entrepreneurship in the US and Chinese Payment Sectors After COVID-19

Abstract

The COVID-19 pandemic has significantly impacted the global payments industry, accelerating the shift to alternative digital payment methods. This comparative study examines the effects of the pandemic on technology entrepreneurship and payment innovation in the United States and China. Semi-structured interviews were conducted with 25 payment entrepreneurs across the two countries to gain insights into drivers of innovation, challenges faced, and the role of government policies. A survey of 200 consumers provided perspectives on changing payment preferences and adoption patterns pre- and post-COVID. Results indicate COVID-19 accelerated interest in contactless and mobile payments due to attributes like convenience and security. However, startups faced barriers accessing funding and navigating regulations. While policies promoting innovation, competition and digitization supported the ecosystem, effectiveness varied. Not all businesses, especially small- and medium-sized enterprises, overcame resource and expertise constraints limiting technology adoption. This research enhances understanding of payment industry transformations during crises. It informs policy approaches balancing supportive initiatives and addressing uneven diffusion. Continued efforts fostering innovative entrepreneurship models and accessible digital infrastructure can strengthen pandemic resilience and economic recovery.