The Impact of Third Party Payment on China's Commercial Banking

The rapid development of social economy and science and technology not only promotes the development of Internet finance, but also has a major impact on people's daily life. While people’s lifestyles are gradually changing, the consumption structure is changing. This led to the emergence of an independent institution with certain strength and credit guarantees, which facilitated the online payment model of transactions between the two parties by connecting to the Internet-third-party payment docking. In the most basic third-party payment model, after purchasing the goods, the buyer transfers to the account provided by the third-party platform for payment operations. That is, the payment is paid to a third party, and the third party notifies the seller of the payment account and requests delivery. After the buyer receives the goods, check the goods and confirm that the goods are correct, then notify the third party to confirm the payment; then the third party transfers the money to the seller's account. Although the development time of third-party payment is not long, even far less than the banking industry, its development speed is extremely rapid, and the scope of development is also expanding. The rapid development of third-party payments and the penetration of business scope overlap with the business operations of commercial banks. This has had an impact on commercial banks, prompting commercial banks to accelerate the pace of reform and strive to adapt to the development requirements of the market.This paper mainly studies the relationship between third-party payment and commercial banks, combining the development status of the two, competitive advantage and competitive disadvantage. Analyze the impact of the rapid development of third-party payment on commercial banks at this stage, and combine the current economic, social and technological development to find corresponding solutions.