A Review of the Impact of Third-party Payment on Chinese Residents’ Consumption

The progressive emergence of different third-party payment systems in the recent past has increased transaction convenience, reduced costs, lowered financial restraints, and simplified access to one’s money. The research on third-party payment and consumer behaviour has attracted more and more attention. Based on the current situation of the influence of third-party payment methods on Chinese residents’ consumption, combined with existing research literature, this paper has sorted out the research results of third-party payment, third-party payment and residents’ consumption research results. The results show that third-party payment methods such as WeChat and Alipay have significantly increased the consumption rate of some Chinese residents, mainly related to consumers’ perception of increased security, loan choice and convenience. However, third-party payment methods have also exposed consumers to severe risks such as money loss with the ever-increasing issues of hacking, identity theft, fraud schemes, and scamming. They also increase spending habits while reducing saving tendencies, making them less appealing. A discussion and analysis of the impacts of third-party payment methods on the consumption of Chinese residents show they generally increase expenditure. The downside of the E-payment methods, like losing money via hacking, can be reduced with improvements to the systems to increase consumption rates.