Mainland, Hong Kong Launch Real-Time Cross-Border Payment Link
By Wang Xiaoqing and Han Wei
Monetary authorities in the Chinese mainland and Hong Kong will officially launch a real-time cross-border payment system on June 22, allowing residents in both regions to send funds instantly using only a mobile phone number.
The Payment Connect program is a joint effort by the People’s Bank of China and the Hong Kong Monetary Authority (HKMA). It represents a major step forward in the financial integration of the two economies. The system will link the mainland’s Internet Banking Payment System with Hong Kong’s Faster Payment System, simplifying personal remittances and daily transactions, and strengthening economic and financial ties.
At launch, the service will be supported by a dozen major lenders — six from each jurisdiction — including HSBC, Bank of China and China Construction Bank. All participants will initially waive fees to encourage adoption.
“Payment Connect will support trade and personnel exchanges between the mainland and Hong Kong, inject fresh momentum into the city’s development and promote the cross-border use of the yuan as China opens up its financial markets,” said central bank governor Pan Gongsheng during a Friday ceremony in Beijing.
According to Darryl Chan, deputy chief executive of the HKMA, Hong Kong users will be able to convert up to HK$10,000 ($1,274) into yuan per day without providing a reason. An annual “no-reason” conversion cap of HK$200,000 will apply, separate from existing cross-border remittance limits. For users on the mainland, outbound transfers to Hong Kong will fall under China’s $50,000 individual annual foreign exchange quota.
Initially, the service will only support person-to-person transfers, but authorities plan to expand its scope to include “livelihood-related” person-to-institution payments — such as tuition fees, medical expenses and salaries. These transfers would not be subject to quota caps but would require supporting documentation.
“The infrastructure of cross-border payment is now in place — like a highway for payments. We just need to continue to explore more use cases in future,” said Nelson Chow, the HKMA’s executive director for financial infrastructure.
Chow added that the fee waiver is a “commercial decision” by the banks to promote adoption, noting that more than 10 more banks are already in line to join the program.
Contact reporter Han Wei (weihan@caixin.com)
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