New payment system allows instant transfers between Hong Kong, mainland

(ECNS) — A new payment system enabling real-time transfers between the Chinese mainland and Hong Kong was launched Sunday, drawing praise from residents for its speed, simplicity, and cost-free service.

The new system links the Chinese mainland's Internet Banking Payment System (IBPS) with Hong Kong's Faster Payment System (FPS).

It allows individuals and institutions in both regions to make secure, real-time transfers in a convenient and cost-efficient way.

The initiative was jointly launched by the People's Bank of China and the Hong Kong Monetary Authority as part of broader efforts to deepen financial integration and promote international use of the renminbi.

Access to the service depends on whether the user's bank is a participating institution in the IBPS-FPS connection. Wider rollout is expected in stages.

For Hong Kong resident Suen Sau Cho, the new system is a welcome change. She previously used platforms like WeChat Pay or Alipay, which often required minimum transfer amounts to avoid currency exchange fees.

On Sunday, she used the new system to send funds to a mainland bank account by simply entering the account number — no background information was required, and the funds arrived instantly and free of charge.

She found the same ease and speed when receiving funds from the mainland into her FPS-linked account in Hong Kong. The new system greatly reduces both time and financial costs, she noted.

It also supports a range of public-benefit financial services, including tuition payments for students studying in both directions, medical payments, and salary or subsidy disbursements.

Ho Shu Wan, who works in Hong Kong's insurance sector, said that in the past, it was cumbersome for mainland clients to pay insurance premiums to Hong Kong companies. The new system simplifies this process, benefiting the industry as a whole.

According to Terence T.L. Chong, executive director of the Lau Chor Tak Institute of Global Economics and Finance at the Chinese University of Hong Kong, the new service will boost cross-border mobility and economic integration, while reinforcing Hong Kong's status as a global financial hub and offshore renminbi center.

By Evelyn