Consumer credit is now often instantly available on E-commerce platforms. This paper incorporates the liquidity provision into the consideration of platform competition. A platform needs to strike a balance between consumer rebates and consumer credit. We show that if there is an insufficient...

The emergence of consumer credit issued on E-commerce platforms poses a new challenge for financial regulators. In the lens of a stylized model, this paper analyzes E-commerce consumer credit's economics and welfare implications. It highlights four points that warrant the particular attention of...