Discussions On How To Promote The Healthy Development Of The Third Party Payment Platform In China

With the rapid development of computer technology, network communication and our country's electronic commerce, the problem of on-line payment has risen. And on-line payment plays an important role in electronic commerce; what's more the essential part of on-line payment is credit. The credit environment in our country is not satisfying. Because commercial banks are limited by their ability to expand their on-line business, their payment and settlement service could not meet the need of on-line payment. Under the above background, some network or communication non-bank businesses make good use of their technological advantages to expand their business activities into payment field, establish the third party payment platform which introduce the third party payment tool to satisfy the payment needs of electronic commerce, perfectly solve the problem of credit lace and safe payment problem of electronic payment. The third party payment platform with its safe, stable and swift payment arrangement is becoming the mainstream of our country's on-line payment. With the help of communication, computer and information technology, the third party payment platform sets up connection between the businesses and banks, acts as the medium of credit and the technology supporter and performs currency payment, cash circulation, funds settlement, inquiries and statistics functions. This essay consists of five parts to study and analyze how to promote the healthy development of the third party payment platform in our country.The first part, the third party payment platform's background and meaning. On the basis of rapid development of our country's electronic commerce and the requirement of division of payment service market, the third party payment platform with advanced technology and distinctive management, provides diversified retail payment services. The third party payment platform, as the non-bank payment and settlement organization, is the important supplement to the payment service system that consists of the People's Bank of China and banking financial institutions and is the creative factor in the payment service system. The third party payment platform satisfies diversified payment needs of economic development; the third party payment platform enhances efficiency of on-line electronic payment and reduces transactions cost; the third party payment platform effectively low moral risks in electronic commerce; through competition and co-operation with banks, the third party payment platform improves the activeness of electronic payment market and promotes innovation; the third party payment platform fosters the credit of on-line payment.The second part, the third party payment platform's development history and its main model. Our country's the third party payment platforms can be divided into two groups: account payment model and gateway payment model. Gateway payment model is the third party payment platform that acts as the bank gateway without internal transaction function; account payment model: payers and payees must open fictitious accounts (mostly use their e-mail address as accounts) and payers must transfer their virtual funds into their accounts at the third party payment platforms using bank cards with the on-line transfer function. About the first half of the year 2005, there were about 10 third party payment platforms including International Payment Solutions (ShangHai) Limited, BeiJing PayEase,China UnionPay, IPay, and Chinabank Payment Gateway. The competition in the third party payment market was comparable fair and loose and the third party payment platforms had little pressure. However, with the expansion of banking operation, banks, Alipay, PayPal and other native or foreign electronic payment business entered the third party payment industry. The competition in the third party payment market became rather intense. Due to lack of clear industry regulation, some third party payment platforms reduce their service fees and even charge no fees at all to attract customers.The third part, the main problems of the third party payment platform in our countries. The development of our country's third party payment platforms have exposed the following problems:.The third party payment platforms have no commercial limit and clear legal status..There are risks in funds in the third party payment platforms'fictitious accounts..There are moral risks in the third party payment platforms themselves. .There are risks of cashing out credit cards in the third party payment platforms'payment model..There are money-laundry risks in the third party payment platforms'payment model..The third party payment platforms'net systems are faced with safety, anti-crisis and anti-virus problems..The competition among the third party payment platforms is becoming homogenization and the third party payment platforms cannot seek the way to make profit.The four part, the current conditions of our country's the third party payment platform and foreign countries'advanced experience. Nowadays, although China has enacted laws and regulations such as《Electronic Signature Law》, these laws and regulations are not easily enforceable due to lack of relevant laws or regulations. In 2006, The People'Bank of China released《The Regulation of Payment and Settlement Organizations》which asks for the public's advice. As regard to《The Regulation of Payment and Settlement Organizations, there are disputes over exceeding authority, the power to regulate the operation, strict requirements that fail to encourage innovation, inappropriate management of funds and strict limits to foreign investment. Therefore, the complete and clear law system and sound regulation mechanism regarding the third party payment have not been made in China. Moreover, a prudent and clear law system and regulation mean a lot to our country's the third party payment platforms. In the US, European Union and other developed countries, electronic payment and the third party payment is developed in large scale and advanced. So the relevant laws and regulations system there are complete and rewarding our learning.The fifth part, suggestions to enhance the regulations of the third party payment platform. Based on their experiences, their advanced regulation model and the principles"regulation and development, safety and efficiency", it is important to set up the law and regulation system as to the third party in our country, to establish the regulation system with the People'Bank of China as its leader, to clarify the in and out- market mechanism, to protect consumers'rights, to supervise clients'funds in the third party platform account, to regulate the third party payment platforms'operation, to enhance the third party payment platforms'safe management, to encourage the third party payment platforms to seek ways to make profit, to certify the third party payment platforms group by group and foster payment industry, to set an appropriate limit to foreign investment and to boost fair competition and to build a fair electronic payment environment.The development of the third party payment platforms is accompanied with the process of public acceptance, the making and enacting of laws and regulations. Under effective regulation and enough competition, the third party payment platforms will develop healthily and ensure our country's payment system stability and safety and benefit the development of electronic commerce.