Research On The Mode Of Third-party Payment

In the 21st century, China's Internet industry is unstoppable, and e-commerce has become the latest pattern of commodity trading .As a key link in the flow of funds, payment has become the major bottleneck which restricts the development of e-commerce. Because the third-party payment model provides preliminary solutions for e-trust problems, e-commerce has reached a new climax.The third-party payment is the mode that non-bank institutions, which are powerful, reputable and integrated bank payment and settlement system interface or other service-based channel for the parties to the transaction, provide support services, such as paying money, clearing capital and monitoring transactions. At present, China's third-party payment model can be divided into two types: one is an independent gateway mode; the other one is non-independent and has the feature of security.In the e-commerce transactions, especally in the virtual network environment, as a result of asymmetric information, the two sides will have moral hazard, so as to impede the development of on-line transactions. In this paper, complete information static game and repeated game theory, are used to analysis the difficulties faced by the online exchange, and through the establishment of a dynamic game model it is showed how a third party resolves the trust problems of online transactions, pointing out that the third-party has enormous advantage.Although the third-party payment in solving the faith of transactions on-line has played a huge role, but it also faces its own difficulty to profit. At present, the income of third-party payment comes mainly from costs of transaction services. However, due to harsh competition, in order to seize more customers, a number of third-party companies provide customers a percentage drop lower and lower, preferential conditions for more and more, despite the cost of original capital. Many third-party payment companies have been losing money for a long time.In order to better discuss the profit on the third-party, this article in accordance with Porter's competitive model, analysis industrial chain of the third-party payment. At present, third-party payment market is faced with five competitive forces which are existing industry competitors, potential competitors, customers, banks, and alternative ways of service. These five forces of competition in the market, will determine the industry's average profit level, and the differentiation of their portfolio will also have a profound impact on the development of the third-party payment platform.For third-party payment companies, the crux of the problem is straightened out the upstream and downstream industry chain relationship, to avoid vicious competition to find a suitable model of profitability. In the last part of this paper, advice is given to enhance the development of the third-party payment in the future from view of the five forces of competition.