Bilateral Market Theory-based Third-party Payment Industry Economics Analysis

With the flourish of Internet technology and e-commerce, China's electronicpayment market has grown rapidly, while the third-party payment industry, as a payment tool independent from e-commerce platform, has also been booming. However, third-party payment industry has also revealed many problems along with its development.As a provider of payment and settlement services,the third-party payment industrial runs into many problems these days, including low scale, low-recognition, and low-profit. The root of the problems can be traced back to the price policy of the companies. It is an important problem for the third party payment companies that how to make the reasonable pricing policy to attract more users while guaranteeing their profits.In addition, the currentlegitimacy and administrative regulations can no longer satisfy the regulatory requirements for the newly developing third payment industrial. How to improve our regulation on this industrial is now a key mission for our government.This thesis is working on the two issues, and has put forward own views on some solutions. Based on analysis on current situation of the third party payment industrial, by using the two-sided theory, the thesis discussed the influences of different pricing policy and regulation measures to consumer, seller and the platform. The writer hopes that these study conclusion and solutions can be meaningful to the future development of this industrial.