Research On The Third Party Payment Of China

Born with the e-commerce, the third-party payment industry experienced a short course of development. With a rapid pace of development, the third-party payment is changing people’s lives rapidly. Having an optimistic judgement at the development of the third-party payment industry, many enterprises get into the third-party payment industry, such as operators, banks and other non-financial institutions. Also, the third-party payment industry itself has undergone profound changes that the structure and profits of the industry are experiencing, as well as the industrial chain strategy and operating modes. At the same time, the government is trying his best to strengthen industry norms. As a result, changes in the industry structure have become a focus. On the one hand, numerous organizations enter the industry. Meanwhile, facing the enterprises, the relationship within the industry between competition and cooperation and between the division of labor and collaboration has become an important problem.In recent years, the phenomenon of division and fusion about the third-party payment industry in our country become clear, but the academic research circles about division of labor of the third-party industry and the fusion trend is still lack of sufficient. In the aspect of the industry value chain upgrading, we still need to make more efforts about industrial division of labor and industrial development and integration, industry regulation. Therefore, this paper chose the development perspective based on the industry of the division and integration of third-party payment in our country, it has great theoretical value and realistic significance.In this paper, Ⅰ first reviewed the theoretical research and related literatures about the third party payment, and then analysed the existing problems of third party payment in our country. Based on the foregoing, Ⅰ analysed the industry value chain, the third party payment and its influencing factors in-depth. Proceed to the next step, Ⅰ analysed the evolution direction of the third party payment industry from the perspective of the division and integration of industry. Finally, I come to a dicision that integration is an effective way to promote value chain of the third party payment industry.This paper is organized as follows:The first chapter:introduction the innovation of this paper, the topic background, research purpose, research contents and framework, research methods.The second chapter:research review and theoretical foundation of the third party payment. This chapter is the foundation of the whole thesis. Firstly, defines the concept, main carding on the concepts, characteristics, types of third party payment, analogy analysis of third party payment and online payment, mobile payment, online bank concept. Then, research review about function problem, the relationship between with the traditional industry, the existence of the third party payment, the platform competition, the influence factors, the profit model of the third party payment. Finally, introduce the basis of the theory of the third party payment research, including the division of labor theory, theory of network externality, the theory of industrial chain, industrial convergence theory, industrial organization theory etc.The third chapter:the development present situation of third party payment. Firstly, this chapter introduces the basic situation of the third party payment industry, including development scale, speed, industry structure and market competition pattern. Secondly, selective analysis the organizational structure of the third party payment in our country, including the concentration and the cause of formation, the market behavior and market performance. And then introduces the management state of the enterprise of the third party payment in our country. Finally, summarizes the problems of the third party payment industry in our country, including the industry positioning, business operations, the homogenization of competition, technology and credit risk, further industry value chain of the third party payment industry need to upgrade.The fourth chapter:analysis the value chain of the third party payment industry. Through the review of the related theories of value chain and industry value chain, refine the industry value chain status factors. Then analyze the structure and characteristics of the value chain of the third party payment industry in our country. Then, use five competitive forces model of competition to analyze the industrial value chain of the third party payment industry in our country, and identify the status of the third party payment in the industry value chain in our country enterprise. Finally, summarize the factors affecting our country third party payment industry value chain from point of the market scale, market concentration, scale economy, product differentiation, technology. This chapter puts forward the evolution of third party payment industry in the pursuit of value in the process of promoting industry.The fifth chapter:analysis the evolution direction of third party payment industry. Through the review of the related theories of industry evolution, This chapter point out the evolution direction of the third party payment industry value chain. Then, analysis the deepening of division of labor and industrial short-term long-term convergence trend according to the characteristics of the third party payment industry chain internodes, including the industrial integration between the direction and other industry and the internal industry, and use game theory to analysis the competitive strategy of the third party payment industry chain parties. Finally, this chapter raise that the integration of the industry will be a effective way to enhance the value of the industrial chain of third party payment industry.The sixth chapter:discussion on the third party payment business model:from the industrial integration perspective. Through analysis of the typical business model, this chapter explains the reasons and affecting factors of integration about the third party payment. The integration of the third party payment industry, include the integration of horizontal mergers which enhance the payment function, improve market share; and integration of vertical merger and cooperation which reduce transaction costs, improve service quality. Finally, this chapter come to a dicision that the integration of the industry can enhance the value, through the analysis of typical examples.The seventh chapter:conclusion and prospect. This chapter make a summary of the article, and make some suggestions of industry practice, including the development of the industry, development strategy, government regulation, and furthermore it points out the study limitations and future research directions.Why this paper is innovative:This paper is mainly to research the evolution trend of the third-party payment industry from the perspectives of the development trend of industry, furthermore, the deep research is about the division of labor and the fusion path changes the third-party payment industry from vertical relationship of the industrial chain perspective. Analysis the relationship between chain link of the third-party payment industry, and make further efforts to propose promotion development countermeasures about the third party payment industry.There are several key points in the paper:1. It analyzes the present status of value chain of the third-party payment industry and teases out its influencing factors.At present the value chain of the third-party payment industry is facing with some actual problems that the horizontal competition is fierce and disorderly at a low level,that the security problem persists,that there is a very strong competition and cooperation relationship between banks and other financial institutions and the third-party payment enterprises and that the third-party payment enterprises is re-setting.The factors influencing the industrial value chain are mainly divided into two types:internal and external factors.Internal factors includes the innovation abilities inside the industry,which includes product differentiation and technological innovation satisfying the diverse demand,scale economy,the diversity of the scale and demand of the market,the value chain relation and so on.And external factor mainly includes policy-related barriers.2. It is proposed that the third-party payment industry presents the trend that is first division and then convergence by logical deduction and game analysis.In the short term,the four third-party payment enterprises,which are divided according to the organizations they depend on and includes the one depending on e-ecommerce platform,the one depending on banks,the one depending on operators and the one depending on nothing,will give full play to their own advantages and focus more on market segmentation.Specifically,the first one will focus more on e-ecommerce payment,bank businesses more on the payment of the trust of trading partners,the third one more on micropayments and payments of living and the last one will deepen the industrial payment,make constant efforts to transform traditional industries and provide service for their capital chain.And in the long term,the third-party payment requires enterprises including banks, equipment manufacturers and operators to cooperate closely to form the trend of industrial convergence.The motivation of convergence mainly contains the pressure of competition and cooperation,the pursuit of scope economy,the driving of market demands and the convergence of technology inside the industry.From the point of the specific convergence,the convergence inside the third-party payment industry is largely reflected in the convergence of the payment means which includes online and offline payment,and the convergence of payment function,such as internet payment,mobile payment and bank card acquiring business.However,the convergence of the third-party payment industry with the traditional industry is mainly reflected in the differential payment services meeting the industry needs,engaging in capital chain service and the improvement of the chain.And the relationships of the third-party payment industry with logistics industry is largely reflected in the convergence of information platform of fund operation and logistics so to improve the operation efficiency.3. The thesis compares and analyzes its typical business mode of the third-party payment industry and points out that industrial integration is an effective way to improve its profits.The existing typical business mode of the third-party payment industry mainly includes:payment gateway mode,enhanced credit payment mode,account payment mode,mobile payment mode.By a comparative analysis of the four modes,a certain deficiencies and shortcomings can be perceived.But by the means of integration,the third-party payment enterprises can give better play to scale economy and make full use of the technological advantages of the links on the industrial chain to comform the government on the need for industry regulation. The integration of the third-party payment consists of horizontal and vertical integration.Horizontal integration are reflected in four aspects:the integration between enterprises having business licenses and being awarded operation and enterprises out of the qualification for operation;the integration of business area, namely the integration among B2B.B2C and C2C,resulting in an increase in the platform efficiency;the consolidation of markets,by which small and medium-sized third-party payment enterprises expand market share;the integration of technologies,which is mostly the integration of many payment modes,such as online payment,mobile payment.telephone payment,TV payment and prepaid card payment.And vertical integration is as follows:integrating the relationship with banks;the cooperation with terminal equipment manufacturers or operators to develop a new payment means;taking vertical line and extending industrial chain.Howerver,there are still several deficiency in this paper:First,theory researches in industrial division and convergence are far from systematic and deep.Now industrial division and convergence is still in the development and the studies of development theory on industrial division and convergence,especially those of the third-party payment industry are hard to be mature enough and perfect.This article focuses on constructing a complete conceptual framework of division and convergence of the third-party payment but less on the deep explanation of description of the phenomenon of industrial division and convergence in terms of economics and all are not very intensive to the internal mechanisms of the development of the industrial convergence and division and convergence of the third-party payment industry.Second,the study lacks of the further forecasts and outlook of the trend of the division and convergence of the third-party payment industry.With the marketization of the third-party payment industry,the escalating advanced technology and the continuous improvements in laws and rules, the third-party payment industry is developing.But without enough time, this paper only presents the possible development modes of the industry in the future based on the division and convergence of the third-party payment industry and the value promotion,which results in the trend of industrial integration.Thus,more follow-up studies are needed.Third one is lacking quantitative analysis. Due to the thirdparty payment indu stry arrives in China is not long, the degree of its integration is low, the relevant da-ta is not sufficient.(The analysis of division of labor and integration in third party payment industry just use tools in subject of simple game theory. The short periods and incompletion of variable indicators’data, the original industrial integra tion effects model can not carried out smoothly. Lack of accurate quantitative anal-ysis is one of defects in the paper.), so the paper focus mainly on qualitative descri ption. As the lack of quantitative analysis and empirical research about the division of labor and integration of third party payment industry development, the paper can not deeply explain the process of industry changing and influencing factors. Only qualitative and quantit-ative analysis be combined can enrich the industrial in tegration theory further.Finally, as the third party payment industry is a very strong technical and practical industry, and it is currently still in the exploratory stages of growth. The n I can only combine my own work practice and imagination to analyze the industr y’s development model and operating mechanism. The personal inference about fu tur-e of third-party payment industry remains to be tested in the future time.