The launch ceremony for faster payment systems between the mainland and Hong Kong Special Administrative Region is held by the People's Bank of China and the Hong Kong Monetary Authority on June 20, 2025. Photo: Screenshot from the official website of the People's Bank of China

The People's Bank of China (PBC), the central bank, and the Hong Kong Monetary Authority (HKMA), held the launch ceremony for faster payment systems between the mainland and Hong Kong Special Administrative Region on Friday, in order to deepen financial cooperation between the mainland and Hong Kong, and to meet the demand of residents in both places for secure, efficient and convenient cross-boundary remittance service, the PBC said on Friday.

According to a joint announcement by the PBC and HKMA, they have jointly pushed forward the cooperation between the China National Clearing Center and the Hong Kong Interbank Clearing Limited in linking the faster payment systems (Payment Connect) in the mainland and Hong Kong.

The Payment Connect will be launched on June 22, 2025.

The Payment Connect refers to the linkage between the mainland's Internet Banking Payment System and Hong Kong's Faster Payment System. It supports real-time cross-boundary payment services for residents in both places, in compliance with relevant laws and regulations of the two places, according to the announcement.

The Payment Connect supports the participating institutions of the faster payment systems in both places to provide convenient remittance services in yuan and Hong Kong dollar for residents in both places under the current account. It also supports the participating institutions in both places, on the basis of implementing relevant policies, to provide instant remittance services for salary disbursements, payments of tuition fees and medical bills, as well as other use cases beneficial to the integration of the two places.

Compared to traditional cross-boundary remittances, the Payment Connect between the mainland and Hong Kong effectively shortens the remittance chain and enhances efficiency, technically enabling participating institutions to provide users with a better cross-boundary remittance experience, a spokesperson from the relevant department of the PBC said in response to questions regarding the Payment Connect.

Specifically, it supports users in initiating yuan and HK dollar cross-boundary remittances between the mainland and Hong Kong online through channels such as mobile banking and online banking, using mobile phone numbers or bank accounts. 

It also facilitates real-time settlement for convenient remittances within a certain amount under the current account, and enables direct connectivity between relevant payment infrastructures, reducing intermediary steps and lowering cross-boundary remittance costs, the spokesperson noted.

The Payment Connect represents another key measure of the central government in supporting the development of Hong Kong, said the announcement. It brings convenience to people's daily lives, deepens financial cooperation between the mainland and Hong Kong, and enhances the efficiency and service quality of cross-boundary payments between the two places. It also facilitates economic and trade activities and flow of people, benefits Hong Kong in elevating its competitive edge, and reinforces its position as an international financial center and a global offshore yuan business hub.

Institutions participating in the Payment Connect shall strictly comply with the relevant laws and regulations on anti-money laundering, counter-terrorist financing, counter-proliferation financing and cross-boundary payment settlement, per the announcement.

Global Times