Seamless Cross-Border Payments on the Horizon
Hong Kong and mainland China are poised to revolutionize the way people make small payments across the border. The Hong Kong Monetary Authority (HKMA) has announced plans to link up the city’s Faster Payment System (FPS) with the mainland’s Internet Banking Payment System (IBPS), enabling users to make real-time transfers of small sums using their mobile phone numbers.
Convenience at Your Fingertips
This development is expected to greatly benefit Hong Kong residents who travel, live, or work on the mainland. With the new system, they will be able to enjoy convenient banking services and cross-border payment services for their daily expenses. According to CEO Eddie Yue Wai-man, “These measures will allow Hong Kong residents to access essential financial services without the need for physical presence.”
Streamlining Account Opening
In addition to the payment system link-up, the HKMA has also expanded its remote account opening services. Three more banks – HSBC, Standard Chartered, and Bank of Communications – have been added to the list of lenders that allow Hongkongers to open bank accounts on the mainland without having to physically present themselves. This brings the total number of participating banks to eight, with over 410,000 accounts opened since 2019.
Technical Milestone Achieved
The technical aspects of connecting FPS and IBPS were completed in December, according to Stephen Pang, the acting head of financial infrastructure at the HKMA. While the exact launch date remains unclear, some services are expected to be rolled out mid-year.
FPS: A Growing Network
Hong Kong’s Faster Payment System has seen rapid growth, with 14.95 million registered users as of July. This electronic payment network allows users to transfer money between different banks using a simple identifier, such as a phone number. In December 2023, FPS linked up with Thailand’s PromptPay digital payment service, enabling Hongkongers to make payments of up to HK$10,000 (US$1,282) a day for goods and services via FPS.
A New Era of Financial Convenience
The linking of FPS and IBPS marks a significant step towards greater financial integration between Hong Kong and mainland China. With the added convenience of remote account opening services, Hongkongers will have greater access to essential financial services, making it easier to live, work, and travel across the border.
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