Rsearch On The Role Of The Third-party Payment In The Internet Financial Industry

The rapid development of the Internet finance in the recent years has had a great impact on people’s lives and has drawn the attention of scholars.As a part of the Internet finance,the third-party payment is now very mature after more than ten years’ development.There is no doubt that the third-party payment has a great role in promoting the development of the Internet finance.This article first gives an overview of the third-party payment,it introduces the concept,background,operating mode,transaction flow and current status of the third-party payment.Then it analyzes the specific role of the third-party payment in internet financial industry:In the aspect of improving the efficiency of the use of funds,the third-party payment can improve the payment and settlement efficiency of funds,the transfer efficiency of funds and the collection efficiency of funds;In the aspect of risk prevention,the third-party payment plays a certain role in preventing the technical risk,credit risk,liquidity risk,money laundering risk and business risk.Then it analyzes the function of the third-party payment from the perspective of financial function,uses the classification of financial functions by Robert Morton and Zivi Bodie,and analyzes the third-party payment from the aspects of risk management,transaction promotion,saving,liquidation and payment settlement where the financial function of the third-party payment is reflected.Finally,it discusses the role of the third-party payment in Internet finance industry from the perspective of economics,this paper argues that third-party payment can reduce transaction costs,improve the efficiency of resource allocation,prevent adverse selection,prevent moral hazard and have signal transmission.