Risk Analysis of the Third-party Payment in China

In recent years, the third-party payment has become an integral part of e-commerce in China. When bringing us a safe, effective, convenient and cheap means for payment, it has also exposed risks. It is essential to have a clear understanding of third-party payment and to distinct the potential risks. We give a description about the definition and the operation process, and then based on previous study, we analyze the potential risk in four aspects: market risk, technical and operational risk, legal risk and credit risk. We suggest that third-party payment platform should focus on innovation, cooperation, routine check and maintenance, and trustworthy credit rating mechanism is a must.