The Influence Of Third-party Payment On The Profitability Of China’s Commercial Banks

As a typical representative of the combination of finance and technology,the third-party payment continues to expand its business scope on the basis of payment and settlement business,which is bound to overlap with the business of commercial banks,seize their customer resources,squeeze their profit space,and bring adverse impact on the profits of banks.At the same time,the third party payment will also bring opportunities for the commercial Banks,behind the successful experience and the core technology is more and more attention by Banks,prompted Banks to cooperate with and learn from it,positive change development philosophy,attaches great importance to the investment in science and technology and talent training,business innovation,constantly bring beneficial effects to bank earnings.In this context,this paper studies the influence of third-party payment on the profitability of commercial banks,and puts forward countermeasures for commercial banks according to the research conclusions.First of all,this paper introduces four theoretical bases:financial intermediation theory,financial innovation theory,long tail theory and financial symbiosis theory.Then,the development process and development status of the third party payment are described.On this basis,the impact of third-party payment on commercial banks is analyzed in detail from the impact effect,competition effect and spillover effect,which lays a theoretical foundation for empirical analysis.Then,according to theoretical analysis,the annual data of 35 different types of commercial banks in China from 2013 to 2020 are selected.The return on total assets and the proportion of intermediary business income are taken as explained variables,the transaction scale of third-party payment is taken as explained variables,and internal and external control variables are added.Stata1 5 software was used to empirically test the total sample and sub-sample using fixed effect model.Through empirical tests,it is found that the development of third-party payment has a negative impact on the profitability of different types of commercial banks,and this impact is very significant.The influence on joint-stock commercial banks is the largest,followed by large commercial banks,and the impact on urban rural commercial banks is the least.In addition,third-party payment will have a significant beneficial impact on the share of intermediary business income of joint-stock commercial banks and urban rural commercial banks.However,there is no significant adverse impact on large commercial banks.This shows that the development of third-party payment has reduced the profitability of commercial banks and changed their profit structure.Finally,according to the analysis results,the following suggestions are put forward for commercial banks:change the management concept and expand the traditional business;Pay attention to cooperation with third-party payment platforms to promote complementary advantages of both sides;Seize the tuyere of science and technology,promote technology to empower.