Research On The Impact Of Third Party Payments On The Profitability Of Commercial Banks

With the development of e-commerce in China,China has set off a wave of online shopping.A large amount of funds began to be transmitted through network channels.Due to the cumbersome payment procedures of traditional commercial banks,people's demand for convenient and secure payment is becoming more and more intense.This kind of demand for people,third-party payment comes into being.Initially,due to less understanding of online payment,coupled with doubts about network security,third-party payment has not been widely recognized.However,with the rapid development of information technology,people have more trust in network fund security,and people began to accept,recognize and generally use third-party payment methods.It was not until 2011 that third-party payment institutions obtained legal business licenses that officially opened up a rapid development.The legalization of business has enabled third-party payment institutions to broaden their business areas on a large scale,and to use the potential business opportunities in the payment market to target small and medium-sized customers,which has brought about revolutionary changes to personal payments,and has even changed people's lifestyle.The rapid development of third-party payment has attracted more interest-seekers to participate.From the years after 2011,various third-party payment institutions have been established and active in the market,according to the official approval list of the official website of the People's Bank of China.As of June 2018,there were 271 licensed third-party payment institutions,of which 238 were renewed and 33 were cancelled.The rapid development of third-party payment has begun to affect the business of traditional commercial banks,resulting in lower bank profit margins and capturing the potential customer base of the bank.As the market competition intensifies,the two begin to have more intersections in the business.This brings opportunities and challenges to the development of traditional commercial banks.As an important part of China's market economy,commercial banks are closely related to the stability of the national economy.Therefore,in the face of the impact of third-party payment,commercial banks must actively change,innovate,and seek new growth points while maintaining existing profitability.At the same time,the competition in the third-party payment market is becoming more and more fierce.In order to seek long-term sustainable development,third-party payment institutions should also actively explore new areas and take advantage of existing advantages to further develop.Based on this background,this paper starts with the profitability of commercial banks on the basis of previous studies to explore the impact of third-party payment.The data samples used are the panel data of 16 listed commercial banks.They are measured by STATA14.0 software,and the multi-indicator measurement model is established and the robustness analysis is added to verify the accuracy of the model.The results show that the negative impact of third-party payment on all commercial banks is more significant,suitable for analysis using fixed-effect models;the impact on large commercial banks is also negative,but not very large,suitable for analysis with fixed-effect models;City commercial banks have significant negative effects and are suitable for analysis using fixed-effect models.Finally,combined with the theoretical analysis and empirical analysis of this paper,some feasible suggestions for the development of commercial banks and third-party payment are proposed respectively.