Research On The Competition-cooperation Relationship Between The Third Party Payment Platforms And Banks In Mobile Payment Industry

With the popularity of intelligent terminals, mobile payment industry enjoys a greatdevelopment. The third-party payment platforms launched various mobile paymentservices to attract customers. After realizing the importance, banks also plan toinvolve into this field. However, the massive and integrated mobile payment industrialchain determines the participants involved will be far more than traditional electronicpayment industry. It consists of the technology and solutions providers and theequipment manufacturers in its upper section, the mobile payment industry itselfincluding telecom operators, third-party payment companies, commercial banks, aswell as the correspondent undertakings in its lower section. Indeed, the mobilepayment industry has developed by co-operations and co-operate games. That meansany individual enterprise cannot effectively control the whole mobile paymentindustry. Instead of that, the intensive and large-scale development of mobile paymentindustry in China could be exercised only by promoting the cooperation among all theparticipants for reaching the win-win solution in an atmosphere of openness.Consequently, the industry could have a great potential in the business expansion,product innovation and integration with the international market.This paper focuses on the third-party payment platforms and banks, the two mostconcerned parts in this industrial chain, to analyze the relationship between them.Even though they have a long history of co-operation, such relationship has beenconverted to a situation in which cooperation and competition coexist along with thepopularity of mobile payments and expanding of the related businesses. The paperanalyzes the necessity of cooperation between them and challenges the banks arefacing because of development of the third party payment from perspectives ofbusiness expansion, financing and offline competition. By taking three different gameanalysis models the paper reaches the conclusion that win-win co-operation must bethe inevitable road for the two parties to realize a sound development in a long run.Finally, some suggestions have been presented for the third-party payment companiesand banks to successfully develop mobile payment business.