Research On Mobile Payments Regulation And Development

Mobile payment emerged in America in 1990s, got a wide applications in Japan and South Korea. It has been ten years since mobile payment appeared in China. In recent years, with the widely use of mobile phone and the diversity of the payment method, mobile payment come to life for a second time with more vitality, it soon become a popular method of payment. The market share of mobile payment has been running in an ascending channel. Now in China, we have China Mobile, Union Mobile Pay, China Union, China Unionpay, China Taobao operating the mobile payment service.Mobile payment has high user coverage, high portability and low cost natures. There are four working models, financial institutions dominant model, operators dominant model, the third-party dominant model and cooperation model. Mobile phone can be used as pay channels or payment account during the payment procedure. In the channel model, the cell phone is just an information transmission medium, while in the account mode, the cell phone participates in the capital transfer process as a mobile account. Considering the widely debate on the account model, it will be the key point of this paper.Look back on the development history, there are three aspects of problems mobile payment has exposed. Firstly, the industry made an impact on financial institutions. One is the mobile payment does the work which is forbidden to the Non-bank class financial institutions. The other one is the currency issue for mobile payment. Thirdly,the safe problems. On the one hand, mobile payment business will produce large amounts of retention funds, forming risk exposure. On the other hand, mobile payment makes it convenient for money laundering crime. Finally, there is moral hazard existing in the process of mobile payment. This is mainly embodied in both sides of business and payment service provider.At present, there are no relevant regulations and case specialized in mobile payment within the world scope. It should subject to the laws on electronic currency or electronic payment. There are two main regulatory models. One is the prudence regulation, for example, EU, amends the regulatory measures all the time to adapt the new changes. Another kind is the loose regulation, represented by Japan and South Korea. They advocated no too much oversight only when it needed for the industry promotion. The regulatory in China is an "attach equal importance to both criterion and development" regulation. Compared with foreign countries, the industry and the supervision are still in their infancy in China.According to the present situation, cooperation model is the appropriate way to develop mobile payment which will make the industry more efficiently and soundly. In addition, from an inland perspective, we should strengthen the industry cooperation and mutual supervision, promote through competition. On that basis, face the international trend of mobile payment. From a regulatory perspective, perfect relevant laws and regulations, standardize the market admittance conditions, establish the management rule of excess reserves, prevent from money-laundering crime, control credit risk.This paper used the literature research method, interdisciplinary research method and descriptive research method. Comparative method is widely used in descriptive analysis. The paper researches on all the mobile payment business form, and focuses on the account type. The article structure is as follows. First, summarized the present development situation of mobile payment, then pointed out the existing problems and development constraints in China's current mobile payment development by contrast each operation mode. Finally, put forward some suggestions in two aspects referring to the foreign regulatory experience.