Business Models Of Internet Finance

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The internet finance industry is newly developed in China, with only a very brief history. However, the industry is growing at a rapid pace and is becoming a significant part of the overall financial industry in China. In terms of financial functions, internet finance is mainly comprised of payment and settlement services, sales of asset management products,and financing. Without discussing any one particular area in depth, this paper is intended to provide a broad overview of each of the business models of internet finance in China, their development and how they interact with the traditional financial sector.
I. Introduction
Internet finance has started in China years ago with online settlement and payment products. However, it is only in recent years, with the widespread of many internet financial innovations, that internet finance has gained so much popularity and became so relevant to people’s everyday lives. With only a few years of growth, the internet finance models are far from mature. But with the development of the internet ecosystem and internet technologies such as mobile payment, social networking, and cloud computing, internet finance is going to be constanly evolving.
The rise of e-commerce is probably the most important factor driving the internet finance industry’s success in China. E-commerce has experienced rapid growth in China in recent years. E-commerce transactions has grown from 0.3 trillion RMB in 2009 to 1.3 trillion RMB in 2013. That is
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