Research On Legal Regulations Of Market Access For Third-party Payment Institutions

2012 is known as our national ‘The First Year of Internet finance’, which symbolizes our national internet finance has formally stepped into all-around development. As a very important part in internet finance, the third-party payment also fulfilled unprecedented development. The third-party payment is a new-type payment that an institution demonstrates all banks’ payment met work port signed with that institution together on one interface so as to provide each transacting party with financial transfer and other relevant additional services through internet technology and other technological forms.And the institution of third-party payment is an independent institution that provides that service.Asymmetrically, our country’s unsound relevant legal system can not chase after the rapid development of the third-party payment. Our country’s current existing laws about the third-party payment are in shortage. What’s worse, some of them even have problems of low legislation, laws’ fragmented distribution, etc. That will directly fertilize illegal phenomenon like some third-party payment institutions’ embezzlement of stock funds through legal and technological loopholes, money laundering in the third-party payment market. In order to realize the goal of ruling the country by law, construction of legal system and establishment of law-ruled society in the Chinese Fourth Plenary Session of the 18 th CPC Central Committee, maintain market’s stability and protect both the equal competitive rights of traditional financial institutions and consumers’ interest. Our country should regulate market based on the theory of market failure and the theory of public interest. As spearhead in market’s supervision, market access regimes should effectively control risks from the source and set threshold for applicants who do not step into market yet so as to select qualified participators.Basically, our national third-party payment institutions’ admittance law originates two parts, whose entity section is from the second chapter of ‘Non-financial Payment Service Management Approach’ approved by People’s Bank of China and program section is from ‘Administrative Approval Law’ and ‘‘Administrative Approval Law of the People’s Bank of China’ combined with series of subsequent details for the implementation. Obviously, that legal system can not meet the standard of a good legalsystem required by the rule of law. In fact, it does have deficiency, such as unscientific contents and norms, unspecific foreign investment admittance, the lack of matching withdrawal mechanism, etc. Besides, some substantial law-ruled lacks like the contradictory legislative approach, formalized law enforcement and weak law-abiding consciousness also has been criticized by our national academia. Therefore, our country can perfect national system of the third-party payment market’s admittance by absorbing advanced experience of some countries like America, EU and Singapore. As to ruling by law in form, we must definite basic principles, optimize existing system and promote the enacting of slip laws as soon as possible. In substantial law enforcement, we should set up legal enforcement rating system for supervision, enhance the publicity of law-abiding consciousness and improve our national regulations about the third-party payment institutions’ market admittance in many aspects.