Hong Kong Government Addresses Regulation of Emerging Payment Platforms

During a meeting of the Hong Kong Legislative Council on October 7, legislator Chan Chun-ying raised concerns regarding the regulation of emerging payment platforms. In response, Acting Secretary for Financial Services and the Treasury, Chan Ho-lam, highlighted the rise of new aggregation payment platforms that target small merchants with low fees and 'buy now, pay later' options. However, issues have arisen, including overdue payments and inaccurate entries, with some platforms operating without the necessary financial licenses and failing to disclose their partner organizations or operational statuses.

From January 2024 to September 2026, the Hong Kong Monetary Authority received 16 complaints related to the suspected unlicensed issuance or operation of stored value payment tools. Following investigations, one complaint was substantiated, but the complainant reported no financial loss. The Monetary Authority is actively following up with the relevant companies to ensure compliance with regulations.

Chan Ho-lam emphasized that the Monetary Authority regulates stored value payment tools under the Payment Systems and Stored Value Facilities Ordinance. Operating without a license in Hong Kong is illegal unless exempted. Additionally, money services involved in currency exchange and cross-border remittances must apply for a license from Customs. Non-bank institutions offering 'buy now, pay later' services that involve loan activities are also required to obtain a money lender license under the Money Lenders Ordinance. The Monetary Authority collaborates with other regulatory agencies to address cases suspected of being unlicensed or non-compliant.

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Source: KLEA News