On Innovation And Risk Of The Third-party Payment To China Payment System

With network applications becoming more and more popular and information technology developing fast, the third part-payment has been becoming fresh blood of our payment system. The third-party payment establishes a payment intermediary and provides a fair, cost-reducing and risk-reducing environment for promoting economic development.On the base of the third-party payment, We research into the innovation and risk which the third-party payment brings to our payment system. The third-party payment relies on public networks for Internet payment system. By connecting the intermediary of financial private network and public network, the third-party payment expands the bank's payment system to the public payment system, which is convenient for the bank and users; what's more, the third-party payment innovates and develops China payment system.The third-party payment innovates the payment instruments, payment functions and payment services organizations. It is a new force of China payment system. Innovation has brought development, but innovation also brings risks. As non-financial institutions, the third-party payment institutions deal with money, funds allocation, settlement and other financial services; therefore, more and more risks are emerging, such as illegal business, financial market risk, operating risk, credit risk and so on. Those risks are the potential threat of china domestic financial stability.This paper begins with the present situation of the third-party payment, emphasizing on the third-party payment innovation in the payment channels, payment systems, payment instruments, payment functions, and then we analyses the risks bringing by innovation. By drawing on the supervision experience of United States and Europe, combining with China national conditions, we make recommendations for the development of China third-party payment.