Abstract:

In order to study the competitive interactive behavior of the payment institutions,we review the influence of user heterogeneity for payment service innovation strategy based on the transfer cost.We also analyze the formation conditions of the local progressive evolutionary stable strategy through evolutionary game，and prove that epayment market Innovative behavior will be intensified or weakened when there is an evolution equilibrium pathway.We offer a theoretical framework for researching innovation competition interactive between payment institutions.

Key words: E-payments, payment innovation, innovation motivation, evolutionary game