Thursday, May 24, 2012

Invisible challenges in third party payment


1. The risk of safety:
On one hand, since the core is provide online payment service, appearance of any security risks in any one of the industry chain are likely to be passed on to the payment platform; on the other hand, changes in network technology is updated rapidly. For the provision of payment service providers, the level of their security should not be lower than that of the bank. They should invest time constantly, supervise at any time and deal with various
credit card processing gateway emergencies and disputes. According to foreign payment merchants, a mount of proportion of operating budget should be  put into the input and disputes about saftey. Under the circumstance of virtually no profit, this  uncertain of risk also put more operating pressure for payment merchants.

2. The risk of the policy:
In the case of low-level competition and diversification of the asymmetric payment needs, payment merchants attempt to carry out a variety of financial services for the inevitability of management and development. The uncertain policy factors about the main service qualifications and the service scope of payment providers have a great effect on input distortion and the level of service, while making some of the services, the source of the industrial chain and the cooperation of the business side is also a mix of more man-made factors. Policy uncertainty and the monopoly of the sector resources to increase the rent-seeking and distortions service With the rapid increase of the volume of services and users, the business risk of imminent.

The structure of payment market still hasn’t formed because its changes are closely related to national policy at every aspect of the industry chain, such as policies and initiatives of the Central Bank of virtual currency and online payment services, online banking strategy and the possibility of Union Bank, various types of telecom operators, Internet operators, e-commerce platform in the alliance of the online payment services and self-development credit card payment service initiatives and so on. No matter how the market structure transformation, SMEs and focus on the main business of large and medium-sized enterprise market, is still an important direction for third-party payment service providers. Third-party payment market will develop rapidly in the process of self-innovation and breakthrough rather than to be squeezed. In addition, each industry in China including Internet and e-commerce will play a significant role when supporting it.

No comments:

Post a Comment