Game Study on Third-party Payment Platform and Bank

Abstract

With the popularity of mobile payment, there are more and more third-party payment platforms. People's payment methods are gradually separated from the traditional banking business and choose more convenient third-party payment platforms. As a result, these platforms pose a significant threat to banks, both business and capital. In addition, due to the unequal interests of both sides in the cooperation process, the willingness of banks to cooperate is also declining. The former cooperative relationship between the two has been transformed into a coexistence of cooperation and competition. Therefore, this paper chooses the third-party payment platform and bank as the research object. According to the benefits under different circumstances, three-game models are constructed for specific analysis. Through the analysis of the equilibrium solution, it is concluded that even though the third-party platform is in a dominant position, through continuous development and the constant game between the two sides, only cooperation can maximize the benefits and achieve a win-win situation.