The Online Third-party Payment Market Transaction Efficiency And Risk Measurement Research

As one of the payment solutions of e-commerce, the online third-party payment is in the rapid growth to become a new industry under the dual push of the market demand and the capital effect. The third-party payment and the online transactions rely on each other. The online third-party payment is the important and typical business service with both characteristics of financial institution and Internet enterprises, which is also required with the highest accuracy and security condition.The emergence of online third-party payment accelerates the convenience. reduces the risk and uncertainty, improves the credibility of e-commerce and further increases the possibility of online transactions. On the other hand, due to the dramatic expanding of Internet industry in a short time, it always brings some new-economic and technological features in the industrial organization and market. During the initial phrase of industry development, the online third-party payment faces many problems, such as serious homogeneity product, unclear revenue model, lower business qualification, precipitation capital interest, cash out from credit card, missing market supervision, etc. However, with the improvement of industry environment, the online third-party payment enterprise so desperately needs in the scientific management system and method, which strengths on the competitive power, reduces randomness and strength risk control, and contributes to more objective and effective decision-making on their own development and marketing strategy. Under the current economic and social system, the studies on the development of online third-party payment’s market mechanism and solutions of main existed, will promote the e-commerce and finance management innovation with positive theoretical value and practical instruction.Since in early stages of development, many internal market mechanism and industry value characteristics of the online third-party payment haven’t exposed fully. This dissertation starts from the main developing situation and problems of online third-party payment industry, combines the multi-disciplinary field research method, including theory research. applied research and empirical studies and is constructed as a clear analysis framework with five parts and seven chapters. This dissertation mainlv focuses on the economic characteristics of market mechanism, the transaction efficiency, and the risk metrics of online third-party payment.The first part covers chapter 1. which introduces the research background, the significance, the main content and structure and analysis framework. From both of the macro environment and micro components were summarized to describe the online third-party payment enterprise how to with the popularity of Internet and e-commerce applications developed, such as industry positioning, business characteristics, management content and business mode, etc., and sums up the main research problems and methods.The second part is about theoretical study (chapet 2). With the mature theoretical system, such as the industrial organization theory, transaction efficiency theory, financial risk management, the abundant research achievements are summarized, combining with Internet economy, long tail theory to determine the theory basis and appropriate analysis tools and methods in the empirical research.The third part is a study on the market mechanism and transaction efficiency. From the perspective of industrial organization theory in chapter 3. the SCP model is applied to analyze market structure, market conduct and markert performance from theoretical study and practical measurement, and further analyze the dynamic evolution of technology progress with the market structure change of online third-party paymen. Also the game theory is applied to judge the short-term and long-term market equilibrium of online third-party payment industry in development. The chapter 4 is based on the incentive theory and the game theory model. In direct transaction, it is proved how to implement the Nash equilibrium. In indirect transaction, the transaction efficiency can be improved through introducing a monopoly intermediary in the reverse market mechanism. Meanwhile, the transaction participants should select a high efficient way based on the incentive compatibility and market mechanism. The intermediation and contract theory is separately applied to analyze the collective and distributed transaction balance. Furthermore, the efficiency equilibrium of market mechanism in online third-party payment can be studied under such theotical framework.The fourth part is about the risk measurement analysis based on EVT. In the chapter 5, the risk measurement of online third-party payment is applied on the modern financial risk control theories, and a relevant risk evaluation model is established based on the extreme value theory (EVT). In the chapter 6, according to the risk distribution law of online third-party payment, the EVT fixed financial risks VaR model and risk indexes to solve the thick tail distribution. Meanwhile, the operating losses and related data of online third-party payment are used to do an empirical analysis to verify the effectiveness of the model judgement.The last part is the cnonclusion and prospect of research (chapter 7). All of the online third-party payment problems in this dissertation are summarized and the limitations are related with the shortage of data. There are some suggestions and future research on online third-party payment, such as improving market regulation, increasing EVT application in online payment risk management. Based on the above theory introduction, application analysis and empirical studies, there are some innovation points proposed in this dissertation.(1) The SCP model is applied to study the industries characteristics of online third-party payment, to make a clear market framework of online third-party payment development, including market structure, market conduct and market performance, to describe the long-term and short-term market equilibrium state of such industry development. This is supplement for the traditional SCP model under network environment to analyze the industrial organization.(2) Based on the asymmetric information in online transactions, the incentive theory and the game theory are used to analyze the third-party payment. As a transaction medium, it is analyzed how the micro market structure and conduct is in the third-party payment, and how to implement the direct show mechanism of Nash equilibrium, and proof that the transaction efficiency can be improved through introducing a monopoly intermediary in the reverse market mechanism. Meanwhile, the transaction participants should select a high efficient way based on the incentive compatibility and market mechanism, and the efficiency balance on the market mechanism of the online third-party payment.(3) A risk metric model is put forward based on the extreme value theory (EVT) to low operational risks. The EVT and its model is applied to study the existing and foreseeable risk classification of online third-party payment. After revising and improving the corresponding theoretical analysis model, an empirical analysis of extreme value theory is conducted to specify industries risk management application and provide effective reference to further study.In study process of this dissertation, because of time limit and shortage of data, there are still many problems deserved to further study. The risk measurement of the online third-party payment enterprises is not perfect, and can be optimized from both of data and method. Meanwhile, with the development of risk control and measurement analysis on online payment, the EVT model should be further improved in view of the online consumer behavior characteristics which is one of particular market risk factors and non-stationary random and correlation variables, and parameter estimation in the model test of financial risk metric to fix the calculation method of technical model and risk assessment indexes. In addition, the Monte-carlo simulation can be used to solve the problem of historical data which is difficult to obtain, etc.