The Research On Third-party Payment In Internet Finance

Internet financial is an emerging industry which combines modern Internet technology and traditional financial service. It is an emerging financial business to provide financing and to promote the completion of the transaction based on the Internet such as big data, cloud computing, cloud storage, search engines, intelligent social network and other advanced technology through the provision of credit service for the users.With the development of Internet information and communication technology, Internet financial promotes the Exchange and sharing of information in a large extent. Because of the marketization of interest rate and exchange rate as well as the liberalization of financial control, the financial market has better played its proper function: transaction costs reduced, risks effectively controlled and the economic resources optimally allocated. With continuous innovation of Internet financial which penetrates more deeply into the financial market, Internet financial is promoting reform in the financial sector and having a profound impact on the entire financial system in China.As one of the traditional areas of financial industry, the third-party payment has a sustained growing deal size and a growing influence after ten years of development. It has become an important part of the growing Internet financial development in China. A total of 270 third-party payment companies have access to the licenses since the rules of the administrative measures for non-financial payment service(People's Bank of China Decree No.2 [2010]) formally promulgated. The issuance of licenses has broadened the whole pattern of the third-party payment industry. The business scope of the third-party payment covers more extensive, including the Internet payment, mobile payment, bank card acquiring, prepaid card issuance and acceptance and so on. With the extent of third-party payment business growing and constant improvement of the supervision system, the third-party payment industry has received the widespread concern in the community.Based on the hot topic of the third-party payment in domestic financial market, this paper fully reflects the current development status and the advantages and disadvantages of the third-party payment market. Taking Alipay and PayPal as examples, this paper has an analysis of the business model and potential risks of third-party payment platform. At last, this paper summarizes and predicts the future trends in the third-party industry.