Joint announcement by the People’s Bank of China and the Hong Kong Monetary Authority on 'Payment Connect', a linkage between Mainland's Internet Banking Payment System ("IBPS") and Hong Kong's Faster Payment System ("FPS"). It facilitates real-time cross-boundary payments and aims to enhance financial cooperation and convenience for residents in both regions. The system is set to launch on June 22, 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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A joint announcement by the People’s Bank of China ("PBoC") and the Hong Kong Monetary Authority ("HKMA") has detailed the launch of 'Payment Connect', an initiative aimed at linking Mainland China's Internet Banking Payment System ("IBPS") with Hong Kong’s Faster Payment System ("FPS"). This cross-boundary payment system enables real-time transactions in Renminbi and Hong Kong dollars, adhering to applicable laws and regulations.
The primary goal of 'Payment Connect' is to improve cross-boundary remittance services for residents of both regions, facilitating various essential transactions such as salary payments, tuition fee remittances, and medical bill settlements. The system supports broader integration by catering to multiple use cases that benefit the economic and social cohesion between the Mainland and Hong Kong.
As a significant measure in support of Hong Kong’s development, 'Payment Connect' enhances the convenience of daily life transactions, fosters deeper financial cooperation, and elevates the efficiency and service quality of cross-boundary payments. Additionally, it boosts economic and trade activities and fosters smoother people flow between the two regions, reinforcing Hong Kong’s standing as an international financial center and a global offshore Renminbi hub.
Under the framework of the Memorandum of Understanding ("MoU") on Cross-Boundary Payment System Linkage, PBoC and HKMA will establish a collaborative mechanism to oversee the effective operation of 'Payment Connect' services. This collaboration ensures adherence to respective legal and regulatory requirements and coordinates with institutions through the China National Clearing Center ("CNCC") and Hong Kong Interbank Clearing Limited ("HKICL") for secure and efficient cross-boundary payment services.
Participants in 'Payment Connect' must strictly adhere to legal standards on anti-money laundering, counter-terrorism financing, counter-proliferation financing, and cross-boundary payment settlement. The system is slated to commence operations on June 22, 2025.
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