Studies On The Relationship Of Compepetion And Cooperation Between Third-party Payment Platform And Commercial Bank

Since the 21 st century, with the rapid development of internet economy, on- line payment is born to improve people’s transaction efficiency and Chinese’s economic growth. As two core participants of on- line payment industry,third-party payment platform and commercial bank keep a pure cooperation at first. However, with the expansion of the scale, third-party payment platform has affected commercial banks’ business gradually and broke their original relationship. In recent years, the dispute between them has become the focus point in financial sector. Be faced with the coexistence of cooperation and competition, third-party payment platform and commercial banks’ actions not only influence their own developments, but also has an effect on the development of on- line payment industry. In order to make them develop healthily and make a contribution to on- line payment industry, this dissertation is intended to analyze the cooperation and competition between third-party payment platform and commercial bank.Firstly, based on the literature review, this dissertation make an conclusion of the development ideas of third-party payment platform and commercial bank; Secondly, this dissertation take Alipay as an example to demonstrate the cooperation and competition between third-party payment platform and commercial bank; Finally, with the game theory model, this dissertation analyze the cooperation and competition between third-party payment platform and commercial bank, and then provide some corresponding recommendations. Based on above ways, this dissertation’s conclusions are as follows:(1) Facing with the coexistence of cooperation and competition, third-party payment platform and Commercial Bank’s cooperation is better to them.(2) Third-party payment platform and commercial bank are in a state which is the coexistence of cooperation and competition, ‘undesirable competition’ is harmful to both of them and on-line payment industry.(3) A single static game model shows that ‘Cooperation Dilemma’ exists between third-party payment platform and commercial bank because of short-term interest temptation and opportunism, while repeated game model shows that ‘cooperation dilemma’ can be out by strengthening the awareness of long-term benefits which depends on the discount factor δ which is inversely proportional to short-term interest and proportional to the penalty of non-cooperation. In order to make third-party payment platform and commercial bank cooperate better, reducing short-term interest temptation, strengthening coopera tion incentives, establishing a reasonable mechanism of interest distribution and improving the rational understanding are four good choices.