3.1. Key aspects of the Bolivian economy

After the lifting ofthe mobility restrictions that characterized the beginning of the coronavirus pandemic, economic activities gradually normalized. However, in 2021 the national economy failed to recover the growth lost during the previous year (6.1% vs. -8.74% in 2020) and during 2022, growth was relatively modest (3.6%). The department of Santa Cruz had a different dynamic, since after declining 4.1%, in 2020 it grew 5.7% in 2021 and 4% in 2022 (Figure 4).

The most recent figures available on growth as ofthe second quarter of 2023 show a more modest national performance, with a twelve-month growth rate ofonly 2.42%, lower than the one at the end of 2022 (3.61%). Sectors related to production and trade activities also showed weak performance, in particular manufacturing industry, which only grew 0.38% compared to the previous twelve months (Figure 5).

It is important to consider that the figures presented only represent a measurement of the country's formal activities, leaving those of an informal nature without a precise statistical record given the methodological difficulties represented by estimating the size of the informal economy.

3.2. Informality and some specific features of Bolivia

The organization Women in informal Employment: Globalizing and Organizing -^{WIEGO (2023)} defines informality as “a set of economic activities, companies, jobs and workers that are not regulated or protected by the market” In 2018, the International Labor Organization released, for the first time, statistics on informal employment, pointing out that 61% of the world’s workers obtain their income from the informal economy ^{(WIEGO, 2023)}.

Studies on the importance of informality in the workforce or economies are relatively scarce for the Bolivian case. In this context, ^{Medina and Schneider (2018)}, in a paper on the global informal economy, found that the Bolivian informal economy represented, on average, 62.3% of the gross domestic product during the period 1999-2015. The estimated world average reached 31.9% and Bolivia was one ofthe countries with the highest estimated degree ofinformality.

^{Velásquez (2020)} states that informality occurs due to several factors, highlighting economic factors such as structural changes in an economy, crises, the limited absorption of labor by the industrial sector, etc. Other factors, more related to institutions, refer to the preference that companies have recently shown for so-called “flexible work”, with subcontracting, temporary jobs and others. It has also been argued that the rigid regulation of the formal labor market generates incentives to seek these types of contracts, which are also less costly for companies.

It is important to note that several of the aforementioned economic factors occurred and could have contributed to maintaining an important informal sector in Bolivia. For example, the crisis of the early 1980s, which involved the massive retirement of mining workers due to the fall in the price of tin, the limited industrial development that characterizes the country and the concentration ofproduction in extractive sectors. This has displaced the workforce to trade and services sectors, not only in the formal sector, but also represent the main activities ofthe informal sector of the economy ^{(Valencia, 2020)}.

Regarding institutional aspects, the times and costs involved in opening a company in Bolivia, the rigid tax regulation and the complex labor legislation would also be driving informality.

3.3. The Barrio Lindo fair

This research selected the Barrio Lindo fair in the city of Santa Cruz de la Sierra to measure the use of QR immediate payments considering the extensive informal sector in Bolivia and the weight ofcommercial activities in the economic structure.

According to former leader Freddy Vega, the Barrio Lindo fair began in 1982 in the center of the city of Santa Cruz de la Sierra (casco viejo). With significant growth in almost twenty years and ten merchant associations the fair was moved to Avenue Brazil and Cuarto Anillo on March 15, 1999 ^{(Barrio Lindo, 2015a)}.

^{Barrio Lindo (2015b)} points out that the fair “has become one of the largest shopping centers in Bolivia, and the largest and most stocked in Santa Cruz” It has more than 30 associations that bring together around 22,000 merchants with a varied supply in clothing, hardware products, cosmetics and farniture, among others. This wide supply attracts customers from other regions of Bolivia and also from neighboring countries, which would total around two million people visiting the fair.

4.1. Methodology

In order to measure the use of QR payments at the Barrio Lindo fair, surveys were conducted with customers and merchants. The final versions of the questionnaires used are available upon request. Question attributes were reviewed for clarity, simplicity, and coherence. Likewise, they were discussed with peer colleagues to collect suggestions for improvement.

For the merchant surveys, the figure found in the documentary review, 22,000 merchants, was taken as the population. With a confidence level of 95% and an error of 5%, a sample of 379 merchants was obtained. In the case of the customers' survey, the figure of two million does not specify whether it refers to client visits on each day that the fair opens or during both days.

In order to validate it, the Google Earth tool was used to calculate the area of the fair. Assumptions were made about the density ofpeople that fit in a square meter, as well as about the space occupied by the fair booths.

Figure 6 shows the extension of the Barrio Lindo fair. According to the measurement tool, the fair has a perimeter of 2,931.01 m and an area of 497,399.48 m². If it is assumed that the merchant booths have dimensions of 3 x 3 m, totaling 9 m² per booth, the booths would occupy around 198,000 m².

Discounting the area that the booths occupy, the area of 299,399.48 m² would represent people's circulation spaces. Ifone square meter can be occupied by 3 or 4 people, the number of customers visiting the fair would be between 898,198 and 1,197,598 people. The first number could be related to visits on Wednesdays, when a lower density of people is expected at the fair because it is a weekday. The second could be associated with visits on Saturdays, when there is usually a greater number ofcustomers. The sum of both estimates is close to two million (2.01), so it is reasonable to think that the figures found in the documentary review consider both days of the fair.

For all scenarios, including the one in which the number of customers is the highest (two million), the calculation tool for the sample indicates a result of385 surveys.

4.2. Activities prior to field work

Considering the size of the fair and that this study is carried out as part of the research work of the Universidad Evangélica Boliviana, the students of the Research Workshop II subject collaborated as pollsters at the fair. It is important to note that the aforementioned subject precisely has the purpose of helping students understand the elements of research following the scientific method, so carrying out field work represents practical learning for the students' own research work.

The final versions of the questionnaires were shared to the students one week before the date chosen to carry out the field work. The purpose ofthe research and each question on the questionnaires were explained to them.

In the week prior to the field work, the students were trained, emphasizing the purpose of the research, how to fill out the questionnaires, what to do if the respondents do not wish to carry out the survey and the ethical aspects ofthe surveys and its fulfillment.

The logistical aspects prior to field work consisted of randomly assigning interviewers to each type of questionnaire, as well as their interviewer code. The meeting point, time, uniform and the need to have a cell phone with sufficient battery and mobile data to carry out the survey were also specified. The guide prepared with the methodological and logistical recommendations is available upon request.

4.3. Field work

Field work was carried out Wednesday, October 4, 2023 with 18 students. The work began at eight in the morning with a review ofthe characteristics ofthe survey, the ethical, technical and logistical aspects to carry it out.

During the field work, 389 responses were obtained in the group of merchants and 319 in the group of customers. Students' queries were answered through chat and costumers and merchants' responses were monitored online.

The main obstacles that the pollsters faced were related to a lower willingness to answer on the part of the costumers, who refused to answer mainly due to time reasons, since they were either circulating at the fair and did not want to stop. In the case ofmerchants, some rejections were due to sensitivity about the purpose of the survey, despite the explanations provided by the students.

4.4. Results

4.4.1. Customers

The rejections that some pollsters had were reflected in a smaller number of questionnaires answered compared to the calculated sample (319 vs. 385), which increases the margin of error of the survey from 5% to 5.49%. This value is within reasonable margins of error for the chosen confidence level though.

A first aspect that stands out about the customers' profile is that they are young, 36% are between 21 and 30 years old. Just over half of the fair's customers have an employment relationship with employers, while the rest are independent workers. 82.5% of customers declared monthly income less than or equal to Bs. 5,000 (around US$ 717), of which 55% have monthly income ofup to Bs. 2,500 (around US$ 359). The majority ofcustomers have a bachelor degree (58%) and their purchases are concentrated in clothing (60%).

QR payments are made by 37.9% of customers, while the majority (61.4%) pays in cash (Figure 7). The main reason why customers prefer cash is because they consider it safer (76%) and, to a lesser extent, because some merchants still receive payments exclusively in cash (16.3%). Only 7.7% of customers are unaware ofalternative payment instruments to cash (Figure 8).

Customers who prefer cash payments are aware of immediate QR payments, but do not use them mainly because they think they are not safe or do not know how to use them (81%, Figure 9). 17% ofthe fair's customers do not have a bank account and the main reasons for this situation are related to the fact that banks ask for many requirements and, secondly, because they do not have enough income to have a bank account (Figure 10). This aspect is consistent with their income level, less than Bs. 2,500 (46% ofcustomers) and very close to the national minimum wage of Bolivia (Bs. 2,362, around US$ 339). It is also important the perception that the absence ofnearby banking agencies limits having a bank account.

Fair customers who pay with QR codes have been using them for more than a year, a behavior that is related to the significant increase in these payments as described in Section 2. A small percentage (8.3%) of customers are using these payments less than a month ago. Customers use QR payments at least once a week (70%).

The results related to customers’ banking usage seem important. Half of customers who use QR immediate payments indicate that they opened a bank account for this purpose. This suggests a one-time increase of around 169,000 new accounts in the banking system considering the more modest number ofvisitors to the fair. The estimated figure represents around 20% of the increase observed in the number of deposit accounts reported by the supervisory authority in its monthly statistical report ^{(Autoridad de Supervisión del Sistema Financiero, 2023)}.

Customers identify the main joint advantage of QR payments as their quickness, safety and that no cost is associated with its use; as a standalone feature, the surveys highlighted how quickly they can make payments. Regarding the disadvantages, almost halfpoint out that QR immediate payments do not present any disadvantages and, to a lesser extent, 36.4% think that the internet service is slow or interrupted (Figure 11). 16.5% indicate problems with their mobile banking applications as a disadvantage.

4.4.2. Merchants

The majority of the merchants at the fair are business owners and 70% are women, whose age is between 21 and 30 years old. The percentage of merchants who declared themselves independent (56%) is consistent with the ownership they indicate over the stands (53%). They mainly offer clothing.

83% ofmerchants indicate that they accept cash and QR payments, while only17% accept exclusively cash (Figure 12). This group are aware of other means ofpayment, the best known being QR immediate payments. However, they do not use them because they are not safe (Figure 13). Some merchants indicated that the transfer takes time to be confirmed, which generates uncertainty feelings.

A second explanation that merchants provided for not charging with QR in their establishments is that they do not know how to use them (23%). Therefore, the need for training merchants was identified. They responded affirmatively to the possibility of training in the use ofalternative cash instruments either on a personalized basis or by joining a training group.

Merchants that offer QR payments have been using them for more than a year in 48.5% of cases. This is consistent with the increase figures in QR payments that were shown in previous sections. 43% of merchants indicate that they have used QR payments for at least three to six months, which indicates that this way of making electronic transfers has been present a relatively long time among merchants (Figure 14). An interesting fact is that 75.3% of merchants had a bank account to offer QR payments, while the remaining percentage opened one to be able to offer this alternative (Figure 15).

76% of merchants received QR payments at least once a week, which shows a fairly frequent use of this payment alternative, especially considering that the fair is only open twice a week.

Merchants identified the main joint advantage of QR payments as safety, quickness and that they have no cost (40%). To a lesser extent, 33% specifically value quickness of QR payments as one of its advantages. The main disadvantage for merchants is the service of internet providers, whether due to aspects of speed or interruptions in service. 20% of merchants consider that processing times and/or failures of mobile banking applications represent a disadvantage for QR payments (Figure 16).

Finally, 55% of merchants at the fair think that their sales increased due to the availability of QR payments. Ofthat percentage, 77% consider that their sales increased by up to 10% due to having the QR payment option available (Figure 17).