Research Of Network Effect Of China's Bankcard Industry

The economic development trends of western developed countries indicate that the network economy has become the bright spot in the economic field. As the research of network economy progressing, more and more industries will develop rapidly in the framework of network economy. The rising of Bank card industry also recurs to the rapid development of network economy. At present, as the growing popularity of bank debit and credit cards, bank cards has gone beyond the traditional functions of ATM transactions, and has been widely used in the field of electronic payment, more and more consumers choose POS payment. At the same time, along with the development of e-commerce, Internet-based network also pays rise, the network economic character of bankcards is increasingly showing.According to this,the article will analyse the development and network economy characteristics of China's bankcard industry based on the network economics principle ,provide theoretical basis for the formulation of industrial development planning strategy of the China's bankcards.The article starts from the theory and nature analysis of network effect,which mainly introduces the meaning and classification,and analyses the essential and economic characteristics of the network effects, providing a theoretical basis for the following further study;Fllowing it ,from the perspective of reality , the author analyses the development and the operating mechanism of China's bankcard industry,started with the development of china's bankcard industry,combined with the operating mechanism of China's bankcard industry,raises the major problem of China's bankcard industry,and provides realistic basis for the following theoretical study;The key point of this text is the analysis of network effect of China's bankcard industry ,uses Metcafle rule to test the network effect of China's bank card industry,educes that China's bankcard industry has an obvious network economic characteristics ,and the scale of business is the main effective factor of China's bankcard industry network effect,so how to attract more businesses to join UnionPay bankcard network is the key of network effect's exertion.On this basis, the author uses Hotelling model theory to make a further analysis on how to play network effects of bankcard industry, educes that the card's acceptor institutions must proivde different and diversified services to attract businesses to join; Finally, based on the existing problems,referred to the experience of developed countries in bankcard industry, the author proposes solutions to accelerate the development of China's bankcard industry,with a focus on the card's acceptor institutions to improve service quality, and provide more financial services for the businesss, and through the bank card payments innovation, broaden the bank card payment network, largestly play the bankcard network effect.