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HKMA collaboration with PBoC to facilitate digital cross border payments

Hong Kong
Hong Kong Monetary Authority, Peoples Bank of China
Payments, Regulatory & Government

(19 February 2019 – Hong Kong) The Hong Kong Monetary Authority (HKMA) and People's Bank of China (PBoC) are working together to introduce cross border mobile payments, eWallets, account onboarding and wealth management products as part of the Hong Kong Greater Bay Area integration.

The ‘Greater Bay Area’ is a plan to promote economic cooperation between Hong Kong, Macau and nine cities in Guangdong province. The eleven cities will combine to share advances in infrastructure, town planning, and innovation and technology. The concept purports that a city with an edge in financial services can complement a neighbour whose strength lies in manufacturing, thereby boosting regional development

The plan will also allow qualified Hong Kong and Macau banks and insurance companies to set up in the commercial development zones of Hengqin, Qianhai and Nansha, and. The goal of the integration is to facilitate wider cross-border sales of mutual funds, insurance and other wealth management services.

“We will study with the PBoC and other mainland officials how to introduce more cross-border mobile payments to allow people in Hong Kong and the mainland to be able to use their smartphones with eWallet mobile apps to make payments. We want to see more eWallets to make it easier for cross-border retail payments,” HKMA CEO Norman Chan Tak-lam stated. “We want to make it easier for Hong Kong residents to be able to open bank accounts in the mainland, particularly the Greater Bay Area.”. He stressed that the success of the project would hinge on gaining the support of associated banks and financial organisations.

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