Digital Payments & Fintech - Hong Kong

The issuance of multi-purpose stored value facilities (e-wallets, prepaid cards) requires an SVF licence from the HKMA, granted only when minimum statutory criteria are met. This is a mandatory, in-force regime under the PSSVFO.

The HKMA is the designated authority for licensing/supervising SVFs and designating retail payment systems under the Payment Systems and Stored Value Facilities Ordinance (Cap. 584).

The HKMA-overseen Faster Payment System provides real-time, 24/7 HKD and RMB transfers linking banks and SVF operators via mobile number, email or QR code; operated by Hong Kong Interbank Clearing Ltd. Cross-boundary 'Payment Connect' with the Mainland launched 22 June 2025.

The Stablecoins Ordinance, gazetted Dec 2024 and in force 1 August 2025, created a dedicated HKMA licensing regime for fiat-referenced stablecoin issuers (reserve, redemption, governance requirements); first licences expected around March 2026, with HSBC among early licensees.

Open banking is delivered through the HKMA's risk-based, four-phase Open API Framework (published July 2018). Phases I–II launched 2019; Phases III–IV (account information and transactions) have been rolling out since December 2021. It is a regulator-driven framework rather than a standalone open-banking statute.

There is no bespoke BNPL licensing framework; whether BNPL constitutes regulated lending is ambiguous and the HKMA has indicated BNPL may not currently be specifically regulated, though it may revisit this. BNPL falls under existing SVF/lending rules where applicable.