Research On Legal Issues Of Third Party Payment Platform

Thanks to Internet Third Party Payment’s advantage in efficiency and security; ithas become an important part of E-commence. The third party market are promptlydeveloping with blooming innovation, which enable the third party payment serviceclosely linked with the GDP increase rate, and help China’s third party paymentcompany to share the international market and join United States’ IPO market. In fact,the regulations and legislations related to third party payment should experienceimprovement after the repaid develop in all these years. Thus, how to clearly definethe rights and obligation in third party payment for all the parties, how to strengthenthe supervision for the third party payment’s trading and information security, how toimprove laws related to customers’ reserve in the third party payment, and other hottopics are waiting for the resolution in China legal theory and practice.In2010, PBOC has released <regulations for non-financial institution paymentservice>, which define the legal status for third party payment, regulate themanagement for customers’ reserve, and improve the protection for customers’ rights.However, with comparison to the legislation for third party payment in developedcountries, we still have a long way to go in third party payment legislation. Forexample, if we compare the third party to financial institutions, there are still defaultsin the allocation for customers’ reserve and the regulations to protect customers’ rightsBased on the comparison research in third party payment legislation and legalstatus, and considering the developing trend of third party payment, this paperconclude the feature of developed countries legislation for third party payments, andpropose that we should define the third party payment institution as prospectivefinancial institution. In addition, instead of defining the third party institution asauthorized agent and mediacy in many research papers, I suggest we should definethem as entrust. In the end, the paper propose several suggestions to improve theallocation of customers’ reserve and information security in the reference todeveloped countries’ related legislation.