Research On The Competition And Cooperation Relationship Between Third-party Payment And Banks Based On Game Theory

E-Finance becomes the trend of current financial development. With the development ofscience and technology, popularization of home computers and Internet, E-commerce and onlineshopping has become an important part of the people’s daily life. Since early21stcentury, theindustry of third-party payment has gradually formed a certain scale, making up for the deficiencyof online banking, such as bank transfers etc.; enriching the variety of online shopping; promotingthe development of E-commerce and the industry of itself as well.Third-party payment refers to a trade payment with credit insurance, which the third-partycompany signs a contract with the bank, and cooperates with groups of businesses. In this way, itoffers a way of helping the businesses make transactions with the banks more convenient. And forthose common sellers, they can also join in E-shops, bringing convenience to buyers. Such industryof third-party payment breaks the traditional transaction pattern of B2B, and enchants the way ofB2C, through which, links businesses、banks、and customers together.In China, the industry of third-party payment started late, which is limited by our hardwarecondition. However, it grows dramatically and rapidly. In the process of its development, there aresome problems. This paper will discuss these problems, and propose solutions accordingly.This paper includes six chapters. The first part introduces the research purpose and method.The second part introduces the development of the third-party payment history and the presentsituation of our country, and also introduces the products of third-party payment industry andlarge-scale enterprise of the third party payment process.The third part a focal point of this paper,introducing the third party payment relationship between industry and banking, online banking,using the method of game theory to analyze the two economies, and finally according to the simpledata model to put forward under different conditions of game result. The fourth part introduces thethird party payment to bring the industry and the problems in the financial system innovation at thesame time, also referring as the risk and insufficiency of the industry. At the end of this paper, according to the proposed risks and problems, it gives solutions through different aspects, includingpolicy, law, and the approach of how to improve the industry of third-party payment itself.