Study On The Third-party Payment And It’s Market Diffusion In China

As the continuous development of online payment market scale in e-commerce, people are more and more focusing on the security of online payment.Therefore, the third-party payment gained market demands, formed a new industry, and has prospered in recent years. Firstly, the amount of third-party payment transaction has grown rapidly, the amount was only 3 billion (RMB) in 2002, while it runs up to 155.88 billion(RMB) in the third quarter of 2009. Then, the product of third-party payment continuously enriched. What’s more, it has received wide application in many fields, such as aircraft, finance, telecommunications ect.The rapid development of third-party payment market has drawn many scholars’attention. Large amount of their studies focused on the market risk and market supervision, while few on the market characteristics. In fact, Third-party payment companies focus on the following questions:(1) Whether the prosperity of third-party payment market is only a transitoriness or can continue to develope for having market demand? (2) What are the market charateristics and future development trend of the third-party payment? (3) What kind of competitive strategies should the third-party companies choose under the government’s uncertain policy?To solve the above questions, this thesis integratedly uses the basic theory of Innovation Diffusion, such as Communication Theory, Learning Theory, Substitution Theory and Game Theory, to analyze the third-party payment market’s diffusion, and reveals the third party payment market characteristic’s trends, and gives the market competitive strategies for third-party payment companies. This thesis contains six chapters. Chapter 1 is introduction, drawing the study issue and priority in thesis. Chapter 2 briefly describes the basic knowledge of third-party payment and Market Diffusion Theory. Chapter 3 to chapter 5 is the main section of this thesis. Chapter 3 analyzes the consumer choice behavior basing on Evolution Game Theory from the micro-aspect. Meanwhile, chapter 4 builds two diffusion models for third-party payment basing on Bass Model from macro-aspect, which are independent diffusion model and coexistence & competition diffusion model of two products. Chapter 5 gives the market competitive strategies for third-party payment companies. In the end, chapter 6 gives a conclusion.In chapter 3’s analysis, this thesis divides third-party payment companies’s customer into two kinds:individual kind customer (C_kind) and business kind customer (B_kind), builds Evolution Game Model under C2C and B2C e-commerce schema, and then solves the Evolutionary Stable Strategy using the extreme solution methods of Differential, finds that:(1) Under C2C e-commerce schema, integrity participants are more likely to choose third-party payment than those of fraudulent in e-commerce online trasaction, while they all will choose third-party payment when the market integrity rate is not high. (2) Under B2C e-commerce schema, B_kind customers prefer to provide online payment to meet the diverse payment demands of their consumers, and they will link to third-party payment platform for cost consideration. These conclusions indicate that the rapid development of third-party payment market is the inevitable result of market damand.In chapter 4, this thesis builds two diffusion models for third-party payment basing on Bass Model from macro-aspect, which are independent diffusion model and coexistence & competition diffusion model of two products, solves the independent diffusion model’s parameters by using software of SPSS15.0 and matlab2006. Through the analysis, we find that:(1) The development of third-party payment’s market size shows a S-growth curve, and the empirical analysis of independent diffusion model reveals that the third-party payment would have kept the rapid growth trend before 2015. (2) Both internal and external factors will boost the third-party payment market diffusion, while the internal one palys a key role. (3) In online payment market, the third-party payment companies and banks are interdependent and mutually reinforcing. What’s more, the development of internet banking will contribute to the third-party payment market diffusion.In chapter 5, this thesis gives the market competitive strategies for third-party payment companies:(1) The third-party payment companies should speed up their market diffusion of their products, promoting the market mainstreaming of products:Firstly, pay attention to the customer’s using experience, and enhance their products’competitive advantage; then, quick access to market by using lower price; finally, emphasis on "user-communication" promotion. (2) The third-party payment companies should integrate resources, and form a deep cooperation with banks; (3) The third-party payment companies should grasp the current market scale trend:" payment & search"This thesis has following innovations:(1) Studing the third-party payment market from the aspect of product’s market diffusion for the first time; (2) The application of Evolution Game Theory; (3) Having builded two diffusion models for third-party payment basing on Bass Model from macro-aspect, (4) proposing that the relationship between third-party payment companies and banks is coexistence & competition. Owing to time constraints, some problems are left and needed further study.