Research On The Supervision Of Third-party Payment In China

In recent years, the third-party payment has got rapid development driven by e-commerce, the arrival of the Internet finance era gave third-party payment industry a sudden rise and it has become the important foundation of Internet finance. Payment and settlement function is the most basic function of financial system. And the third party payment, as an important supplement of e-commerce, obtains the trust of consumers quickly with its advantage of convenience and quickness, its trading scale is growing day by day.However, the rapid developed third-party payment industry is hidden with great risks,such as credit risk, liquidity risk, technology risk, legal risk, precipitation funds risk,operation risk and so on. The existence of these risks has created a huge challenge to China's existing regulation system. Although our country has issued a series of laws to regulate the development of the third-party payment, there are still many deficiencies. This paper gives a detailed explanation of the risks of third-party payment firstly,using the theory of market failure and externality to explain the necessity of the regulation of third-party payment, and then introduces the regulatory model of China, American and Europe,based on the comparison and analysis of these countries,this paper finds the problem of our country's regulatory model. Finally, on the basis of static and evolutionary game model, this paper makes a research on the best strategy of supervision on third-party payment theoretically.According to this paper, methods of supervising third-party payment should be motivation for compliance rather than closing?pausing?violation fines or restrictions for normal business scope. Secondly,the legal position of third-party payment institutions should correspond to the existing financial supervision system to avoid the dislocation of regulation, seeing them as non-financial institutions can only be an expedient for risk management, it will have negative effects on financial creation from the long run. Thirdly,it is much more adaptable for China to combine the supervision pattern of overall supervision for institutions and key supervision for service and function. Finally, we should focus on the supervision on the trusteeship system of precipitation funds and information disclosure system at present, we should also deregulate third-party payment appropriately and build up a flexible management system of reserve.