A Study On The Development Of China’s Third-party Payment Companies

With the growth of the internet impact on people’s daily lives, the Internetnetwork has been experiencing an unprecedented economic development, the networkeconomy developed rapidly. People’s payment concept has been overturned since thefirst time China Merchants Bank released the online bank. Because of the internet hasa virtual feature, network security, asymmetric information, online banking can notprovide the security of payers’ funds. In order to better resolve the contradictionbetween the expanding of network consumption and online payment security concerns,the third-party online payment came into being. With the rapid development ofthird-party payment, A series of questions followed, not only the risk and competitionwithin the industry, but also the complex relationship with commercial banks.Although the development of third-party payment companies is facing many problems,it has a huge space for the future development. Then, to research the third-partypayment has a great significance.This article is based on the theory of value chain and competitive advantage.Firstly, through the analysis of the third party-payment development. Fromdevelopment status, problems and SWOT analysis of the industry, then obtainedresults that the third-party payment has a larger space for development, it is necessaryto have a further development. Secondly, by building the value chain of third-partypayment companies, clear the composition of its value chain, analysis is contact andcharacteristics of the internal and external, and propose third-party paymentcompanies can decompose and improve its source of competitive advantages by valuechain to promote companies’ competitive advantages. Thirdly，through the analysis ofthe relationship between third-party payment companies and commercial banks, toaddress its competitive and cooperative relations, utilize the game theory to proposethey should choose to cooperate, combined with Granger causality test, empiricalanalysis how the transaction volume of commercial banks’ online banking affect thetransaction volume of third-party payment companies, and point out it’s affected, thenget the conclusion that they should choose to cooperate.Through the combination of theoretical research and empirical analysis, finallypropose the third-party payment companies should strengthen the self-regulationbetween interbank, strengthen cooperation with commercial banks, optimize the user value chain and strengthen internal management. I hope that through this paper coulddevote the theoretical value and practical significance to the development of thethird-party payment companies.