On Sunday, the “Payment Connect” system was officially launched, linking China’s mainland and Hong Kong’s financial payment networks for the first time. This milestone enables residents of both regions to conduct real-time cross-border remittances with enhanced speed and security.
The first transaction under the new system was completed in Shenzhen, Guangdong Province, according to the local branch of the People’s Bank of China (PBC). An official from the PBC Shenzhen Branch highlighted that Payment Connect will facilitate safer, more efficient, and convenient payment services, supporting economic trade and personnel exchanges between Shenzhen and Hong Kong.
“This system will accelerate the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area and further strengthen Hong Kong’s role as an international financial hub,” the official added.
A Major Step in Financial Integration
Financial analysts described Payment Connect as a groundbreaking development in the interconnection of financial infrastructure between the mainland and Hong Kong. The system is expected to boost the yuan’s usability in cross-border retail transactions.
The initiative was jointly proposed by the PBC and the Hong Kong Monetary Authority (HKMA) to deepen financial cooperation and meet the growing demand for secure, efficient, and convenient cross-border remittances.
How Payment Connect Works
Payment Connect connects China’s Internet Banking Payment System (IBPS) with Hong Kong’s Faster Payment System (FPS). Under the framework, residents in both regions can make instant small-value transfers using just a mobile phone number or bank account number, in compliance with local regulations.
The HKMA confirmed in a statement that the system simplifies cross-border payments, allowing users to send funds quickly and securely.
Strengthening Hong Kong’s Financial Role
The PBC emphasized that Payment Connect is a key government measure to support Hong Kong’s development. By improving payment efficiency and convenience, the system not only benefits daily life but also enhances economic and trade activities between the two regions.
Furthermore, the initiative reinforces Hong Kong’s competitive edge as a leading international financial center and a major hub for yuan transactions.
This launch marks a significant step forward in financial integration, paving the way for smoother cross-border financial services and closer economic ties between the mainland and Hong Kong.
