Research On Regulatory Of Internet Payment Under The Central Bank Perspective

Internet payment industry has the dual characteristics of the networking industry and the financial industry,itis an important solution to improve the electronic payment security and convenience. So that, it attracted more consumers use the Internet to pay, the size of the transaction increased along withamplitude. While the rapid development of Internet payment, it also the emerged of a lot of problems. For example, the profitability model of the business, business qualification,lack of market supervision and so on.Before2010, China has not issued a special law to regulate the field of Internet payment, at the same time, there is not a specialized agency for the Internet payment industry regulatory in China. During this period, China’s Internet payment industry developed without regulatory.So, it exposed a lot of problems in the industry, while also restrictedits own development. Since the introduction of <Non-Financial Institution Payment Service Management Approach>, it developed some of the basic norms of Internet payment industry from the industry point of view, such as access threshold, risk control, provision, etc. It strived to protect the safety of consumer funds, safeguardedconsumers’legitimate rights and interests. It is a move not only encourages financial innovation, but also maintains financial stability. Since<Payment Institutions Internet Payment Service Management Approach>(draft) issued, it has makeChina’s Internet payment industry into the era of a stringent regulatory, and development of the enterprises under regulatory will also promote the healthy development of the industry as a whole.The research content of this paper is divided into seven chapters, the main content is as follows:Chapter1introduces the background and significance of the topic of this article. On the basis of the relevant literature, author summarizes the focus of the study and the difficulties of this article, and develop research, and basic framework of this article,and research methods and innovation. Chapter2introduces the development status of China’s Internet payment, and then analyzes the Internet payment market trends, and summarizes specific business and innovative products of the major Internet payment enterprises.Chapter3analyses the regulatory measures on Internet payment of the United States and the European Union, and summaries the suggestions and inspiration for regulatoryofInternet payment in China.Chapter4combines the legal process of the Internetpayment in China, summarizes the major policies in the field of Internet paymentandanalyzes their main content; enact background, implementation effect as well as the shortcomings.Chapter5analyzes that under the goal of maximizing gains to social welfare maximization and regulators, what regulatory measures of the central bank choose to take.Chapter6is the empirical section of this article.It verified that the impact on the industrial development after the enactment of the two laws by establishing individual fixed effects mode.Chapter7is a summary of this article. According to the former model derivation and empirical results, author summaries proposals and measures for the regulation of China’s Internet payment and draws the conclusions of this study.Through this study, I draw the following conclusions and recommendations:First, the empirical analysis of the results shows that the presence of defaults with shops time is inversely proportional. The shops exist longer the time, the default rate is lower, the longer the time of payment companies, the higher its integrity. Thus regulatory agencies should be rigorous examination of the qualifications of enterprises when issuing the payment of license and set a reasonable margin, so that enterprises are bold and innovative and does not violate the policies and regulations in the case of normal operation, to ensure the healthy development of the entire payment industry.Second, the regulatory agencies develop reasonable regulatory measures. If regulatory agencies want to maximize social welfare through a rebate mechanism, an approach is to subsidy payment platform directly, so that regulators can always monitor the trading fee changes. It is easier to access to the subsidy effect of feedback. If regulatory agencies want to pursue revenue maximization and eliminate illegal business behavior, the regulatory agencies should be reasonable to determine the effective range of regulatory inputs.Regulatoryagencies should perform its regulatory dutiesIn the range of regulatory powers to achieve regulatory maximize returns.Third, Since <Non-Financial Institution Payment Service Management Approach>and<Payment Institutions Internet Payment Service Management Approach>(draft) issued, it has played the role of the urge to pay companies legitimate business. Corporate default rate is reduced to a certain extent. The introduction of the two laws, madeclear rules for access management, settling financial supervision and consumer rights protection of the industry. However, these regulations still have some issues that need further refinement:(1) Consumer online privacy protection.(2) The powers and responsibilities of sharing Internet payment institutions outsourcing.(3) Internet payment violations.Fourth, use modern technology in monitoring the Internet payment transaction process. Internet payment transaction process is capital flow and logistics:(1) The implementation of the account to bind, to monitor the flow of funds.(2) The use of the Internet of Things, monitoring logistics.Fifth, the<Non-Financial Institution Payment Service Management Approach>clear the regulatory body position of PRC, but some Internet payment clearing and settlement services provided by the enterprise have interbank transfer function, which is the day-to-day in the business of commercial banks regulated by the CBRC. The information industry department as promoting information construction and maintenance of information security management departments, information security and privacy protection in the Internet payment process, all belong to the scope of regulation of the doors of the Ministry of Information Industry. Therefore, China should build mainly to PRC Regulatory Commission and the Ministry of Information Industry, doors, etc.supplemented by the regulatory system.