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Payment Connect Launches: Hongkongers and Mainland China Residents Embrace Cross-Border Payment Service
On June 22, 2025, Hongkongers and mainland China residents eagerly adopted Payment Connect, a groundbreaking electronic payment service facilitating real-time cross-border transactions. By linking Hong Kong’s Faster Payment System (FPS) with mainland China’s Internet Banking Payment System (IBPS), the service processed 6,900 Northbound and 19,000 Southbound transactions by 6pm on launch day, averaging 800 yuan (US$111) and 3,100 yuan, respectively.Link
Background
Announced by the People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA) on June 20, 2025, Payment Connect connects 315 million users—17 million FPS users in Hong Kong and 298 million IBPS users in mainland China. The system supports payments for travel, meals, education, medical services, salaries, and more, with plans to expand use cases.Link
The initiative grants Hong Kong residents a daily remittance quota of *HK1,282) per linked bank account, while mainland residents face an annual overseas remittance limit of US$50,000. Hong Kong users transferring to same-name mainland accounts are capped at 80,000 yuan daily. Six banks from each region, including Bank of China and HSBC, support the service at launch.LinkLink
Key Features and Launch Highlights
- Real-Time Transfers: Users can send funds instantly using mobile numbers or account numbers, enhancing convenience for cross-border activities.Link
- Bank of China’s Milestone: The bank completed Hong Kong’s first personal cross-border transfer to its Shenzhen branch, alongside facilitating salary payments for a ship-management company and education fee collections for a higher-education institution.Link
- User Guidelines: The HKMA advises users to update mobile apps, verify Hong Kong residency with valid ID, and ensure mainland recipients are registered for cross-border payments. English names must match receiving bank records for account-based transfers.Link
Economic and Social Impact
Tan Yueheng, a Hong Kong Legislative Council member, emphasized that Payment Connect enhances daily life convenience amid growing economic and trade cooperation. Financial institutions are expected to develop tailored cross-border financial products to meet diverse customer needs.Link
Kwan Chi-man, group CEO of Raffles Family Office, highlighted the system’s role in facilitating talent mobility across borders, with strong use cases in payroll automation and education payments. The initiative strengthens Hong Kong’s position as an international financial centre and a hub for offshore yuan trading.LinkLink
Challenges and Considerations
- Registration Delays: Mainland recipients may face delays in completing cross-border payment registration.Link
- Anti-Money Laundering Measures: Banks enforce strict compliance checks to prevent misuse, addressing concerns about potential illegal activities.Link
- Limited Hours: The service operates 16 hours daily, not 24/7, which may restrict some users.Link
Conclusion
The Payment Connect launch marks a significant milestone in deepening financial integration between Hong Kong and mainland China. By streamlining cross-border payments, the service supports economic ties, enhances user convenience, and reinforces Hong Kong’s role as a global financial hub. As more institutions join and use cases expand, Payment Connect is poised to transform cross-border financial interactions, fostering greater connectivity and cooperation.LinkLink