New instant payment system in Hong Kong
The Hong Kong Monetary Authority (HKMA) has launched a round-the-clock instant payment system, called the Faster Payment System (FPS) as a fintech upgrade for retail payments in the country. HKMA had said the new platform will always be online and connect to banks and stored-valued facility (SVF) operators. Some 21 banks including the majority of retail banks and 10 SVFs are participating in the initiative. With FPS, residents are able to transfer funds in real-time across banks and SFVs participating in the system by simply using the email address or number of the recipient instead of a bank account number. Two currencies are currently supported on the platform - the Hong Kong Dollar and China’s fiat currency Renminbi for settlements in the mainland. HKMA will operate the book of settlement for HKD payments while Bank of China (Hong Kong) performs the same role for RMB payments. The Hong Kong Interbank Clearing Limited will take up the mantle as the entire system’s operator.