The Third-party Payment Risk And Its Prevention Research

With the popularity of the Internet, the e-commerce is increasingly close to people’s lives, and because of the emergence of the third-party payment people’s lifestyles and consumption concept have changed. Since 2002, the third-party payment of China has gone through more than ten years, which is not only showing a momentum of rapid development, the growing number of organizations, and the expanding of the business, but also exposing the risk which creates a certain impact on the healthy operation of the market. Currently, the market concentration of the third-party payment is high. As the third party payment giants for example Alipay, have occupied half of the entire market, its business scope is expanding from the initial payment and settlement apply to the one which involve medical treatment, payment, inquiries and other aspects of daily life. Now the third-party payment is increasingly changing people’s lifestyles and consumption concept. At this stage, the entire third-party payment market is gradually moving towards a mature stage, followed by a partial breakdown of the plate is already saturated. Under the new situation, the major third-party payment institutions are integrating resources, ongoing financial innovation, in order to find the new growth point in the ever-changing market. In the background of the Internet Financial, how to effectively control the risk of the third-party payment, as well as providing a variety of convenient services within the scope of the standard operation become a serious problem in the new period for the public.Firstly, this paper introduces the concept, characteristics and function of the third-party payment, on the basis of analyze the third-party payment at the Internet Financial background, we can inductive the new development. Secondly, after analyzing the risk of the third-party payment, this paper summarized the specific risks of the third-party payment into five points, respectively, compliance risk, precipitation financial risk, network system risk, phishing risk and disputes risk, and find out the causes of these risks. Then, in the fourth part, combined with foreign countries this paper will analyze the domestic operation of the third-party payment. Andon the basis of third-party payment risk, we will make some appropriate policy recommendations of prevention, mainly from four aspects to unfold: First, from the regulatory side, the state should improve laws and regulations further, and in order to lower the money laundering risk, the department should make management approach for the development of the third party payment. At the same time, establish the evaluation criteria of the third-party payment to improve the exit mechanism of the industry; Second, in terms of social credit system, the state should improve the personal credit system to improve personal credit database, and gradually establish a commercial credit information system; Third, from the industry self-regulation side, the association should develop industry guidelines, and strengthen cooperation with other parties in order to issue related coordination within the industry; Fourth, institutions of the third party payment should pay attention to their own prevention and control of risk, and strengthen the network infrastructure and personnel training to control the risk events from the source. Only the parties cooperate with each other and work together could provide a good living environment for the industry of the third-parties payment, and ensure its sustainable development.