On The Security Problems And The Legal Responses When Opening-up Chinese Third-party Payment Market

Third-party payment institutions are defined as non-financial payment institutions in China.They provide some or all of the money transfer services as an intermediary platform between payees and payers,including online payment,issuance and acceptance of prepaid cards,bank card receipts and other payment services determined by the People's Bank of China.In the context of the booming Internet finance,China's third-party payment service market has been fully developed,and third-party payment has almost covered all aspects of China's social and economic life.At the same time,how to regulate,protect and effectively supervise foreign capital finance or foreign non-Financial institutions,the relevant competent authorities in China have accumulated a wealth of experience.In order to further enhance the competitiveness of third-party payment services and fulfill its international obligations of opening to the outside world,China has cancelled the access restrictions for foreign-invested payment institutions in 2018 and implemented national treatment for foreign-funded third-party payment institutions.Under the background that China's third-party payment market is open to the outside world and foreign-funded third-party payment institutions are allowed to enter the Chinese market,these new changes may bring certain risks,shocks or uncertain factors to the relatively safe and calm market under the old legal framework,and may cause some problems to maintain the security state of the third-party payment market in our country under the opening up of the third party payment market.And these problems are generally manifested in different levels of security problems that are more prominent.From a macro perspective,given the close relationship between the payment services provided by third-party payment institutions and the monetary policy and financial supervision of a country,to a certain extent,the third-party payment market in China will inevitably affect the national financial security.For example,a large number of financial information data storage and transmission security issues,illegal use of third-party payment services for money laundering,terrorism or corruption and other criminal activities.Therefore,before foreign-funded third-party payment institutions enter the chinese market,it is necessary to conduct national financial security review to control risks,strengthen the national information security system and crack down on criminal activities such as antimoney laundering.On the micro level,on the one hand,after the introduction of foreign-funded institutions,the service providers of the third-party payment market in China are more diversified.To maintain the stability of the industry,it is necessary to strengthen or optimize the admission regulation and operational supervision of third-party payment institutions including foreignfunded third-party payment institutions.In particular,it is necesssary to pay attention to security issues such as customer provisions and institutional facilities through appropriate regulatory arrangements to comprehensively prevent and control major systemic risks.On the other hand,as a consumer of payment services,after introducing new foreign-funded third-party payment service providers,their transaction security and rights protection are also more concerned.In the above-mentioned discussion,one of the purposes of strengthening the review and supervision of foreign-funded third-party payment institutions is to protect the rights and interests of financial consumers.To this end,appropriate legal arrangements should be in place to protect the security of financial consumer transactions,especially to protect customers' funds,information security,and to ensure that financial consumers receive appropriate legal remedies when their rights are damaged.In view of the above-mentioned security issues,this paper,based on the current situation and shortcomings of China's existing legal rules,refines the relevant institutional experience of major foreign economies,and puts forward personal suggestions on how to reasonably learn and respond effectively in China.In addition to the introduction and conclusions,this article is mainly discussed from the following four chapters:The first chapter is mainly about concept discussion.On the basis of the definitions of related concepts such as third-party payment services,third-party payment markets,foreigninvested payment institutions and safety state under the condition of the opening of the thirdparty payment market,this paper expounds the major progress and specific changes in the opening up of the third-party payment market in China,and points out the outstanding security problems that may be brought about by this change mainly cover three aspects: national financial security,the operation security of foreign third-party payment institutions and the transaction security of financial consumers.The second chapter begins with the analysis of financial security,the relationship with financial openness,and the possible macro-impact of China's financial security after the establishment of foreign-funded third-party payment institutions.Analyze the problems and shortcomings of legal systems in the areas of the current financial security review,national information security guarantee,and anti-money laundering,counter-terrorism and anticorruption in response to these changes,and make comments in light of the relevant institutional arrangements of major foreign economies,and then propose personal suggestions for improving China's financial security legal security system.The third chapter mainly discusses the legal regulation and supervision of the operation safety of foreign-funded third-party payment institutions under the conditions of opening to the outside world,mainly including the regulation of foreign-invested third-party payment institutions in the market access and exit stage,and the effective protection issue of the provisions security requirements and the operational safety of the organization itself during the continuous operation phase.Then proposes perfect suggestions based on the experience of foreign countries.The fourth chapter mainly discusses the legal protection of financial consumer transaction security under the open conditions of the third-party payment market.On the basis of pointing out the increase of financial consumer transaction security risk and the lack of current legal protection after the opening of the third-party payment market in China,compared the institutional arrangements for customer fund security,personal information security,delisting system design and legal remedies,etc.in other foreign countries,put forward countermeasures to effectively protect the security of Chinese financial consumers' transactions after the entry of foreign-funded third-party payment institutions.