China, Hong Kong Launch Cross-Border Payment Connect System
China’s central bank and Hong Kong’s monetary authority launched "Payment Connect" on June 22, linking mainland China’s Online Interbank Payment Clearing System (IBPS) with Hong Kong’s Faster Payment System (FPS) to enable real-time cross-border remittances. The initiative, announced in a joint statement on June 20, aims to streamline cross-border transactions for residents in both regions.
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The system allows participants to offer efficient, convenient, and secure cross-border payment services to residents under the framework of laws and regulations of both places. It marks the interconnection of fast payment systems between the mainland and Hong Kong, enabling residents to handle cross-border remittances in real time. The first batch of participating institutions includes six banks from the mainland and six from Hong Kong, with plans to expand the scope gradually.
A responsible official from the central bank stated in a Q&A that compared with traditional cross-border remittances, this Payment Connect effectively shortens the remittance chain and improves efficiency. Technically, it supports participating institutions in providing better cross-border remittance services for users.
This integration not only enhances daily financial convenience for residents—such as handling living expenses, education fees, or medical payments across borders—but also strengthens the financial connectivity between the mainland and Hong Kong, laying a more solid foundation for regional economic and trade exchanges.
As the system operates smoothly, its expanded coverage is expected to further promote cross-border capital flows in a safe and orderly manner, leveraging Hong Kong’s role as an international financial hub to deepen financial cooperation between the two sides.
