Impact Of The Development Of Third-party Payment On Commercial Banks' Intermediary Business Income

With the rapid development of the information technology, e-business applications continue to expand and diversify into Internet finance. During this time, the third-party online payment patterns have experienced incubation, growth and development. Especially from 2008, with the popularization of smart phones, China's third-party online payment patterns have developed rapidly. Safe, convenient, low-cost, the third-party payment platforms, such as Alipay, Wechat pay, have attracted more and more customers.With the interest rate liberalization, commercial banks have to promote sustainable development through transformation and upgrading, especially in the intermediary business sector. However, with the continuous improvement of third-party online payment patterns, the commercial banks are going to face a new challenge.This paper is about to discuss the impact of third-party online payments on commercial banks'intermediate business income. We try to use both theoretical and empirical methods to analyze this impact, and then, give some advice to commercial banks.This paper is divided into four parts. The first part, introduction, is going to present the background and the framework of this article. Also, through the literature review, we find that the researchers hold two different opinions on this topic. Some of them believe that the third-party online payments cause a loss to commercial banks, while the others think the third-party online payments are not able to pose a threat to commercial banks.Secondly, in the second part of this paper, we introduce, respectively, the development status of the third-party payments and commercial banks, including their definition, characteristics, classification and trend in development.Thirdly, we try to make use of the theoretical and empirical methods to analyze this problem. In the theoretical analysis, this paper studies the comparative advantages of third-party online payments and commercial banks and draws a conclusion that third-party online payment patterns will cause a loss to commercial banks'intermediary business revenue and customers. In the empirical analysis, in order to figure up the influence of third-party payments on the banks'intermediary business, this paper collect the data from Central Bank, the report of listed banks, the national Bureau of Statistics, iResearch, etc. Then we selected commercial banks'non-interest income as dependent variable and the transaction size of third-party payments, GDP and others as independent variables to build panel data models. The result of the analysis is that the third-party payments will indeed cause a loss to commercial banks'non-interest income.Finally, on the basis of the above analysis, this paper is going to propose some suggestions to commercial banks. We suggest that, first of all, the commercial banks should make good use of their leading role in the payment services market. Then, banks have to improve their payment systems including online payment and offline payment. Next, the senior managers of banks should attach more importance to product and service innovations in the intermediary business sector. In addition to, it is favorable to intermediary business if banks can make full use of their advantages to explore the company and international business. Finally, establish cooperation relationship with third-party payment patterns is a good idea to make the best of the both worlds.Based on the predecessors'research, this paper try to study the impact of third-party online payment on commercial banks' intermediary business revenue by both theoretical and empirical methods. The purpose of this paper is to propose suggestions to commercial banks on how to face the challenge of third-party payments. However, lack of theoretical knowledge and practical experience, I still have some shortcomings in this work. I will continue to improve myself in the future. Thank you all for the help!...