Study On Optimization Of Profit Model Of SD Company In Off-line Third-party Payment Business

As the economy keeps growing and Non-financial Institution Payment Services Management Approach is promulgated, third party payment companies have been pouring into the market in an astonishing pace, especially in big city like Shanghai and Beijing, while huge potential in prepaid card still lies in coastal cities for some reasons. On the one hand, the acceleration of urbanization will improve the environment for the development of prepaid card in the future; On the other hand, since there are a large number of unbanked people who are suitable users of prepaid card, and welfare of government and company keeps improving, combined with the portability of prepaid card, wide application of prepaid card will be possible.This paper reviews the theories based on which the central bank issues third party payment licenses to domestic prepaid card companies and then study the status quo of domestic prepaid card industry. The author, quoting SD company as a case, analyzes and studies the issuance and acceptance of prepaid card issued by third party payment companies, states the returns on reserve funds, management of equity, accounting and rationality/legitimacy of invoices issued in detail, and also analyzes some cases of registered/non-registered prepaid card business, providing some reference for other emerging third party payment companies on how to operate and avoid risk, and operation process.