I examine how the advancements in payment technology facilitated by money service
businesses (MSBs) affect new business creations. Using the staggered introduction of
Multistate Licensing Agreement among US states, my result shows that this agreement
leads to exogenous increase in the number of MSBs in a state. Advancements in MSBs
facilitates better customer access to small businesses, which lead to increase in small
business creations. There is, however, a significant disparity in the number of small
business growth in counties with above and below-median Black populations. Overall,
my result suggests that entrepreneurs in communities with predominantly high Black
population do not benefit from the advancements of payment technology as much as
those in other communities.