Research On Cross-border Payment Market Structure And Competitive Strategy

In the context of increasing economic globalization,economic and trade exchanges between countries or regions have become closer,and the scale and frequency of cross-border payment,clearing and settlement of funds have increased,the global cross-border payment industry has begun to take shape.After 2013,China gradually loosened restrictions on non-financial institutions to conduct cross-border payment services.A group of non-financial payment institutions with a deep understanding of cross-border e-commerce are gradually entering into the market competition of cross-border payment business.This has a profound impact on the cross-border payment market structure and market competition.In addition,the blockchain technology has the technical characteristics of decentralization.When applied to cross-border payment business,it can effectively solve the problems of high cost,low information transparency and long time delay in the existing cross-border payment business.Therefore,the introduction of blockchain technology in cross-border payment business has attracted more attention.At the present stage,the researches on cross-border payment market under international trade current items are mostly phenomenon sorting and problem countermeasures analysis,and the researches on market structure and competitive strategies of cross-border payment market need to be further deepened.Based on the above realistic and academic background,this paper carries out research,and its main research contents are as follows:1.The market structure of cross-border payment in China is analyzed and the market structure theory of limited monopoly competition is put forward.First of all,this paper briefly introduces cross-border payment and cross-border payment market,and clarifies the research objects.Secondly,taking historical events as clues,this paper reviews the development process of China's cross-border payment market and the evolution of its market structure.This paper divides the development process of China's cross-border payment market into six historical periods and points out the market structure of the first five historical periods.Based on this,this paper focuses on the analysis of the market structure of China's cross-border payment market at the present stage,proposes and demonstrates that China's cross-border payment market at the present stage is a limited monopoly competition market,and briefly analyzes the influence of limited monopoly competition market on the behavior of market subjects.Finally,the cross-border payment market with limited monopoly competition is further analyzed by using Hotelin model.2.Based on the characteristics of the current cross-border payment market structure and business practice in China,with the help of industrial organization theory and evolutionary game theory,this paper proposes the competitive strategies of commercial banks and payment institutions.In the analysis of traditional international settlement business of commercial banks,based on the network externality characteristics of international settlement business,a quasilinear quadratic utility monopolistic competition model(NEOT model)considering network externality is constructed,and the competitive strategies of commercial banks in international settlement business are analyzed.In the analysis of cross-border e-commerce payment business of commercial banks,from the perspective of cooperation between commercial banks and payment institutions,a price competition model that reflects market product differentiation and sequential equilibrium is constructed,namely,Hotellin-Bertrand-Stackelberg model(H-B-S model).In the research on the market competition strategy of the cross-border payment business of China's payment institutions,based on reality the “Administrative Measures for the Foreign Exchange Business of Payment Institutions”,and the deep integration of the cross-border payment business and cross-border e-commerce,a two-stage evolutionary game model is used.3.This paper discusses the competitive strategies of cross-border payment service providers in the context of the rise of blockchain technology,and proposes the distribution architecture of cross-border financial communication system and cross-border payment business model of commercial banks based on blockchain.Based on the evolutionary game model,this paper analyzes whether the cross-border payment service vendors adopt the blockchain technology under the background of the rising of blockchain technology.Research shows that under certain conditions,some cross-border payment service providers will choose to adopt blockchain technology.Large cross-border payment service providers are more likely to adopt blockchain technology than small and medium-sized cross-border payment service providers.This paper introduces and analyzes two paths for cross-border payment service providers to adopt blockchain technology,namely issuing digital currency and non-digital currency,and compares them from the aspects of business universality,system interoperability,system operation efficiency,technology realization,impact of international financial system and policy uncertainty.According to the analysis,it is the optimal path for the current cross-border payment service providers to adopt the blockchain technology by not issuing digital currency but treating the blockchain technology as a new information technology to optimize the existing cross-border payment business process or carry out business restructuring.Finally,combined with the actual business of cross-border financial communication operators and commercial banks,the distribution architecture of SWIFT system based on the blockchain and the cross-border payment business model of commercial banks are proposed.The market structure of limited monopoly competition proposed in this paper enriches the traditional market structure theory.By analyzing the cross-border payment market competition strategies of the service providers of cross-border payment-commercial banks and payment institutions,it provides theoretical guidance for their market competition activities.Under the background of the rising of the blockchain technology,the paper analyzes whether the crossborder payment service providers adopt the blockchain technology and the specific path of adopting the blockchain technology,so as to provide theoretical guidance for the decision making of the cross-border payment service providers.The proposed distribution architecture of cross-border financial communication system and cross-border payment business model of commercial banks based on the blockchain provide reference for cross-border payment service providers to adopt the blockchain technology to optimize cross-border payment business,so as to improve market competitiveness.