The Research About Third Party Payment Impact On China's Commerical Banks Profits

Under the background of the rapid development of economy and science and technology in China,Internet finance is gradually expanding.Meanwhile,Tencent,baidu and alibaba have developed rapidly.The third-party payment platform has developed rapidly.Tenpay,alipay and yu 'ebao are typical representatives.It has created a new modern payment pattern in China.Wexin payment and online payment have been integrated into People's Daily life.And they occupy a large proportion in the payment and settlement of the whole country,causing a huge impact on the traditional business of commercial Banks.The development of third-party payment platforms has brought convenience to people's lives.It has promoted the development of financial industry,and also brought opportunities and challenges.As an early Internet finance business,the popularity and maturity of third-party payment are getting higher and higher.The application field is getting wider and wider.With the development of The Times,the business of third-party payment platforms is no longer limited to the traditional payment and settlement business,but it has developed investment and financial management,consumer credit and other businesses.In the future,third-party payment will have more extensive development space.As third-party payment continues to change people's consumption habits,the impact on the profits of commercial Banks will continue to deepen.This paper first introduces the relevant theoretical basis of third-party payment and commercial Banks' profits.Then it analyzes the relationship between the cooperation and competition.To intermediary business profit,assets and liabilities business profit as the breakthrough point,this paper selected the five big state-owned commercial Banks,three local city commercial Banks,four joint-stock commercial bank,a total of 12 Banks in 2017 financial statements data.It uses the sensitivity of the pressure test method to research the effects of the third-party payment on commercial bank middle business and liabilities costs under different replacement ratio.Finally,this paper puts forward some constructive suggestions on how commercial Banks should deal with the impact of third-party payment and improve the quality and level of service real economy.