Discussion On The Profit Models Of Third-Party Payment Institutions

With the rapid development of online shopping and offline mobile payment,various third-party payment institutions have sprung up,which greatly promote the size of third-party payment transaction.As the fund transfer intermediary,third-party payment institutions will handle a large amount of funds in the course of business operations.Some of them have taken illegal activities of occupying client funds,misusing customer funds and leaking customer information in order to obtain more profits,which seriously affecte the smooth operation of the market economy.Since 2017,relevant policies such as “broken direct connection” and the deposit of the provisions have been officially promulgated.The supervision to third-party payment institutions has become stricter,and the third-party payment industry has gradually become standardized.At the same time,many companies' profit model has been heavily affected.And many companies have encountered the bottleneck to progress.Since the operation of the first third-party payment institution “PayEase” in 1999,20 years have passed,but the research on the profit model of third-party payment institutions still stays at the simple recognition of fee income and deposited fund income.At the stage,it is difficult to provide guidance for enterprises to solve development dilemmas under the new situation.Therefore,how third-party payment institutions formulate and improve profit models deserves further study.This paper mainly uses research methods such as literature research,case studies and comparative analysis.In the literature research,it reviewe a large number of relevant research results at home and abroad,and explain and summarize the profit model of third-party payment institutions.In the case study,this article takes Lakala as an example,which is the first share of A-shares in the third-party payment industry.Firstly,this paper introduces the development process of Lakala and the uniqueness of Lakala's profit model.Then this paper divides Lakala's profit model into five aspects,profit object,profit point,profit leverage,profit source and profit barrier.Finally,the financial report data of Lakala is summarized and analyzed.In terms of comparative analysis,this paper selects Guangzhou Helipay Technology Co.,Ltd.("Guangzhou Helipay")and ChinaPNR Co.,Ltd.("ChinaPNR")as the comparison objects.Compare and analyze the important financial indicators of the three companies to evaluate Lakala's profitability and profit quality.The results of the case study show that:(1)Continuous technological innovation is the guarantee of the profit of third-party payment institutions;(2)Accurate market positioning is the basis for the development of third-party payment institutions;(3)Relevant national policies are guidelines for third-party payment institutions' strategy development;(4)A good corporate image is a boost to the profit of third-party payment institutions.This paper is divided into six chapters: The first chapter is the introduction.Firstly,it expounds the research background and research significance.Then on this basis,the domestic and foreign literature on third-party payment and profit model research is reviewed.It summarizes the main viewpoints on the definition,component,classification,financial evaluation of the profit model and the profit model of third-party payment institutions,and makes a literature review.Finally,it put forwards the research ideas,research methods and basic framework of this paper.The second chapter mainly expounds the related theories of the profit model of third-party payment institutions.Firstly,it introduces the related concepts,the main business and main profit model of the third-party payment institutions in detail,and then the components of the profit model are elaborated.Finally,this paper discusses the theory related to the profit model of the third-party payment institution,such as enterprise design theory and synergy effect,which provide a theoretical basis for the analysis of this paper.The third chapter is the introduction of Lakala's profit model.It firstly introduces the development history and the profile of Lakala.Then,it displays the characteristics of lakala profit model from three perspectives,which are technical accumulation,innovation ability and market positioning.The fourth chapter is the case analysis.Firstly,Lakala's profit model is divided into five aspects: profit object,profit point,profit leverage,profit source and profit barrier.It analyzes the profit model of Lakala from the five aspects.Then,the financial evaluation of Lakala is carried out from the perspectives of profitability and profit quality.In the analysis process,Guangzhou Helibao and Remittance World are selected as comparison objects.The fifth chapter is the conclusions and enlightenments of the case study are drawn.They are expected to provide useful reference for other enterprises and contribute to the healthy and sustainable development of the industry.The final chapter is the epilog of the article,pointing out the limitations of this article while raising hope.