Research On China 's Third Party Internet Payment Supervision

In recent years, with gradually breakthrough in Internet payment and information communication technology, a totally new model of financial business has been invited which called the Internet finance. Third-party Internet payment is one of the core elements and also the important form of the Internet finance. With the characteristics of flexible, convenient, fast, efficient, high technology and “paid disintermediation”, the third-party Internet payment is more competitive than traditional financial payment system. It guaranteed the interests of both sides of the transaction, especially the funds receiving side. It speed up the cash flow and revitalize the stock of funds, based on overcome the restriction of time and space.However, some risks appears since the deeply integrated of the third-party Internet payment and the Internet finance, such as imperfect of internal control risk system of payment institutions, defenseless against external risk impact, and certain threats to consumer financial security which all call for a stricter financial supervision of third-party Internet payment. It is also the basic to promote the healthy development the Internet finance. It is a dilemma to make a rule which will realize the balance between encouraging innovation and strengthening supervision. Because the Internet finance’s consumers covering all sectors of society, if only encourage financial innovation to improve efficiency and ignore finance security, it will result in serious information system security risk. On the contrary, over regulation will hinder the Internet financial innovation.This paper firstly analyzes the development status and risk combined with the specific cases of Chinese third-party Internet payment industry which contains the current situation, development and existing problems of Chinese third-party Internet payment supervision. Then it introduces the advanced experience of foreign third-party Internet payment supervision.Through the use of game model to analyze the relationship between the regulatory authorities and third-party Internet payment platform, using the equilibrium model of administrative supervision to analyze the efficiency, the cost and benefit of Internet payment. Finally, give reasonable suggestions for the third-party Internet payment to maximum the value in economic development.In addition, this paper also mentioned the “twin peaks” supervision theory, which is proposed by the British economist Michael Taylor. Establish “pre-twin peaks” regulatory model in China based on the existing third-party Internet payment supervision system, in order to promote the third-party Internet payment supervision and to ensure the national payment system stable and safe.Therefore, the Supervision system of third-party Internet payment industry should be established mainly by the PBC, assist with the CBRC, the Ministry of industry, the Ministry of public security and Industrial and Commercial Bureau. All these departments strengthen the joint supervision of the third-party Internet payment.