Hongkongers can use FPS for cross-border payments by midyear: HKMA
HKMA and PBOC have been working on syncing the Faster Payment System and the mainland’s Internet Banking Payment System
Hong Kong and mainland China are linking up their digital payment systems to allow small cross-border payments via mobile phone numbers this year, according to the Hong Kong Monetary Authority (HKMA).
The HKMA has also added three more banks – HSBC, Standard Chartered and Bank of Communications – allowing Hongkongers to open bank accounts on the mainland without having to show up in person. The banks join five other lenders that have been providing account-opening services since 2019.
“These measures will allow Hong Kong residents who want to travel, live or work on the mainland while enjoying convenient banking services and cross-border payment services for their daily expenses,” CEO Eddie Yue Wai-man said on the sidelines of the Asian Financial Forum on Monday.
The HKMA and the People’s Bank of China have been working on linking up the city’s Faster Payment System (FPS) and the mainland’s Internet Banking Payment System (IBPS) to allow users on both sides of the border to conduct real-time transfers of small sums through the two payment systems.
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. Some services were expected to be launched in the middle of this year, he added, but declined to give more details.
