The financial connection between Hong Kong and Mainland China is about to take a significant step forward. The Hong Kong Monetary Authority (HKMA) has announced plans to trial a seamless cross-border payment system, set to launch by mid-2025, enabling real-time, round-the-clock transactions between Hong Kong and Mainland China's financial networks.
This upcoming service will facilitate instant 7x24 hour transfers, making cross-border payments faster and easier than ever before.
Simplifying cross-border transactions
Under the new framework, Hong Kong's "Faster Payment System" (FPS) will directly connect with Mainland China Internet Banking Payment System (IBPS). This integration means users will no longer need to wait for traditional banking hours or currency clearing processes. Instead, Hong Kong and Mainland users will be able to send and receive funds instantly at any time of day, using simple identifiers like mobile phone numbers to initiate transfers.
The FPS-IBPS linkage supports smaller transactions. Initial stages of the system will likely focus on personal transfers, with an expected transaction cap of HKD 10,000, allowing Hong Kong residents visiting Shenzhen or Mainland residents shopping in Hong Kong to make easy payments and transfers without high fees or delays. This phase would not yet support business or commercial payments.
Expanding payment options
This latest step comes as part of a broader push for connectivity in the Greater Bay Area, which has seen both cities advancing cross-border financial services. Starting this month, UnionPay International announced support for linking foreign-issued UnionPay cards with Alipay and WeChat Pay. Foreign visitors can now enjoy convenient QR code payments in Mainland China, eliminating the need for cash or additional foreign transaction fees.
These steps are expected to further increase the ease of doing business, tourism, and daily activities across borders as financial authorities continue to enhance payment flexibility. As the FPS and IBPS systems work toward full connectivity, both Hong Kong and Mainland residents can anticipate a new level of integration and ease, marking a milestone in financial accessibility within the Greater Bay Area.
