Hong Kong's FPS to link with UnionPay for cross-border QR payments across 40 markets
Hong Kong's Faster Payment System (FPS) will partner with UnionPay International to support QR code payments in Hong Kong, mainland China, and over 40 overseas markets, covering more than 100 million merchants.
Hong Kong's Financial Secretary Paul Chan Mo-po announced at the Hong Kong Fintech Week that the city's Faster Payment System (FPS) will collaborate with UnionPay International to enable QR code payments across Hong Kong, mainland China and more than 40 overseas markets, covering over 100 million merchants. Chan said the initiative aims to facilitate cross-border transactions.
Chan said FPS registrations have exceeded 22 million, and the average daily value of Hong Kong dollar payments through the system reached HK$16.2 billion last year. The FPS already connects to systems in mainland China and Thailand.
Chan stressed that improving efficiency depends on connecting financial systems rather than simply accelerating individual systems. Payment network interoperability allows the public to use familiar services to pay in more places, while merchants can more easily receive cross-border payments. Connecting tokenised assets with digital currencies can enhance transaction and settlement efficiency.
Addressing the global unmet trade finance demand of US$2.5 trillion, Chan said Hong Kong is using commercial data to compensate for small and medium-sized enterprises' (SMEs) lack of collateral. The Commercial Data Interchange (CDI), launched in 2022, has facilitated over 125,000 SME loan applications and approvals, involving an estimated HK$110 billion in credit.
Chan added that both efficiency and financial inclusion rely on trust. Secondary market liquidity for tokenised assets still needs to be established, and large-scale application of stablecoins remains under testing. He said fintech should not remain at the pilot stage but should make businesses' daily collections, financing and payments to overseas suppliers faster and more reliable. The government will provide clear rules and reliable infrastructure to encourage industry applications that benefit businesses and the public.