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CN-HK Payment Interconnection Service Said to Launch in Jun 2025; No Retail Consumption in 1st Phase
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The latest Policy Address mentioned that the Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBOC) are promoting the interconnection of the two places' rapid payment systems, that is, the interconnection of Hong Kong's Faster Payment System (FPS) and the Mainland's Internet Banking Payment System (IBPS). The HKMA and the PBOC are still discussing the details, with the aim of mapping out specific details by the end of 2024, according to multiple news sources. The target time for the interconnection of FPS and IBPS is tentatively set for June 2025, while several banks in Hong Kong will pilot it in April 2025. The first phase will not involve retail consumer payments, or will be limited to cross-border transfers and remittances. By then, Hong Kong people can use FPS to instantly remit RMB to the mainland, while mainland residents can use the interconnection service to instantly remit HKD to Hong Kong for daily use. Potential uses include cross-border payroll for enterprises, cross-border Comprehensive Social Security Assistance (CSSA) payments by the Hong Kong government, and paying tuition and living expenses for Mainland residents' children studying in Hong Kong. In wake of the many technical problems involved in the interconnection service, and the fact that Hong Kong people currently use WeChat Pay and Alipay extensively, it is believed that the problem of paying for purchases on the mainland can be solved. However, the relevant parties also hope that the service between the two places will cover cross-border retail consumption in the future. AAStocks Financial News |
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