On 15 Nov 2024, the HKMA issued a circular encouraging merchant acquiring banks to adopt specific sound practices—such as proactive terminal deployment, incentives, and targeted technical support—to expand mobile POS terminal usage among merchants. The HKMA will monitor progress through surveys and urges banks to address merchant hesitancy by understanding concerns and offering tailored solutions, building on existing June 2023 guidance.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction and Purpose
On 15 Nov 2024, the Hong Kong Monetary Authority (HKMA) issued a circular encouraging Authorized Institutions to promote the adoption of mobile Point-of-Sale (POS) terminals among payment card merchants, building upon existing measures outlined in the HKMA's June 2023 circular on 'Major Enhancements on Protection of Payment Card Customers'. The circular identifies sound practices for merchant acquiring banks to expand mobile POS terminal coverage while addressing merchant concerns.
Recommended Sound Practices for Banks
The HKMA identified four key sound practices for merchant acquiring banks to reference when promoting mobile POS terminals: (a) proactively providing or deploying mobile POS terminals to newly acquired merchants; (b) replacing conventional terminals with mobile POS terminals upon merchants' service requests (e.g., during terminal malfunction); (c) introducing financial/non-financial incentives (e.g., free demonstrations or trials) to incentivise adoption; and (d) providing technical support, alternative solutions, and addressing merchant concerns regarding network stability or operational changes to ease hesitancy.
Ongoing Monitoring and Engagement
To sustain efforts in expanding mobile POS terminal usage, the HKMA will engage merchant acquiring banks through surveys to collect relevant statistics on adoption rates and challenges. Banks are further encouraged to proactively understand merchant concerns, provide necessary assistance to address practical difficulties, and continue exploring diversified mobile POS solutions tailored to merchants' varying needs.
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