The Research On The Disclosure Of The Third Party Payment Institutions

With the promulgations of Administrative Measures for the Payment ServicesProvided by Non-financial Institutions, Implementation Rules for the Implementationof the Administrative Measures and for the Payment Services Provided byNon-financial Institutions and Law of the Protection of Consumer Rights and Interests（2014Amendment）, the current PRC laws and regulations preliminarily providedthe guidance and reference to the problem of the legal status of the third-partypayment institutions and attribution of the precipitation funds’ fruits thereof.Meanwhile, the development and innovation of e-finance never stops, which leads tothe transition of the third-party payment institutions to the network financialinsinuation. Therefore, the rapid growth of the third-party payment industry presentsthe regulatory authority up with higher challenges: how to construe the mechanism ofinformation disclosure system thereof.The research theme of this thesis is information disclosure mechanism of thethird-party payment institutions, and the full text is divided into five chapters. Thechapter one firstly introduces the third-party payment institutions’ legal status andrelevant legislations, and then analyzes legal relationship among the paymentinstitution, consumer, seller and fund custodian banks in order to pave the way for thefollowing chapters. The chapter two discusses the theoretical basis of informationdisclosure from the perspective of jurisprudence and economics of law, and further researches on the related risks and risk-defense mechanism. The chapter three lists indetail the current PRC laws and regulations and legislative gaps relating to third-partypayment institutions, and discusses the legislation evolution and the value orientationthereof. The chapter four focuses on the overseas legislative and practical experienceon information disclosure mechanism of the third-party payment institutions,including such experience in the U.S., U.K. and Basle Committee. The chapter fiveproposes a concrete suggestion that China should, by the reference to the overseasexperience, establish and standardize the information disclosure mechanism of thethird party payment institutions as soon as possible, and discuses some prospectivelegal issues for the he further development of the third-party payment industry.Compared with the counterpart in the U.S., the industry of third-party payment isstill at early stage in China. Oligopoly and excessive growth are hard to be eliminatedin the third-party payment market in China. To be specific, small and medium-sizedthird-party payment institutions fail to claim a large market share, while the bigthird-party payment institutions ignore its information disclosure obligation by takingadvantage of its dominated market position. Moreover, there is no strict legal liabilitymechanism which requires third-party payment institutions to make disclosure ofinformation. On the other hand, due to the strong speaking power in market andpublic trust to the third-party payment institution, it is necessary to establishinformation disclosure mechanism for the third-party payment institutions for thepurpose of prevention of their misusing the said speaking power and public trust.Finally, in the current legal system in China, the provisions in relation to theobligation of information disclosure on the third-party payment institution are stillvery scarce, as well as the specialized research and analysis thereof.This thesis aims to discover the loophole of the relevant legal system, explain theobligation of information disclosure, and summarize the same through the research ondomestic legal system of the third-party payment information disclosure, in order tomove forward a further single step on protection of the consumer’s right to know.Furthermore, an improved supervision system wills facilitate the operation ofpayment services and other extended financial services provided by the third-party payment institution.