Analysis of the Impact of Third-party Payment on Currency Demand

Abstract

With the rapid popularization of mobile Internet, mobile offline third-party payment has penetrated into all aspects of daily transactions, and has a profound impact on people's consumption habits, payment methods and original financial management concepts. According to the view of network economy in microeconomics, the growing third-party mobile payment has produced considerable positive network externalities. With the continuous expansion of payment scope, payment objects have produced economies of scale, and marginal costs have fallen, thus obtaining considerable competition. force. As the direct target of third-party mobile payment, cash is inevitably replaced. Previous researches usually focused on macroeconomic indicators such as currency creation multiplier and cash leakage rate for mobile payment for macro analysis. This article will analyze the corresponding changes in different types of currency demand under the continuous impact of third-party payment according to the classification of currency demand levels, and explore the impact of the resulting monetary demand structure and the impact on the role of macro monetary policy.