HKMA grants stored value licences to eight more issuers including PayPal
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“We are pleased to see companies with diverse backgrounds offering a variety of SVF products which will enhance retail payment convenience in Hong Kong,” said Howard Lee, Senior Executive Director of the HKMA.
The implementation of a supervisory regime by the HKMA will strengthen public confidence in using stored value products and services which, in turn, will encourage innovation in the local retail payment industry, Lee said.
The other issuers granted licenses are 33 Financial Services Limited; Autotoll Limited; ePaylinks Technology Co., Limited; K & R International Limited; Optal Asia Limited; Transforex (Hong Kong) Investment Consulting Co., Limited; and UniCard Solution Limited.
The city’s de-facto central bank granted the first batch of licenses to SVF issuers such as Alipay Financial Services (HK) Limited in August.
The Payment Systems and Stored Value Facilities Ordinance started operation on Nov. 13 last year and provided a one-year transition period for application for SVF licences.
Upon the expiry of the one-year period, it will be illegal for any person, unless being exempt, to issue or operate SVF without a license, the HKMA said.
Questions & Answers
Q.How many stored value facilities licences has the HKMA granted in total so far?
How many stored value facilities licences has the HKMA granted in total so far?
The Hong Kong Monetary Authority has now granted 13 stored value facilities licences in total. This includes the eight new issuers announced, along with an initial batch granted in August.
Q.What is the purpose of the HKMA's supervisory regime for stored value products?
What is the purpose of the HKMA's supervisory regime for stored value products?
The HKMA's supervisory regime aims to strengthen public confidence in using stored value products and services. This increased confidence is expected to encourage innovation within Hong Kong's local retail payment industry.
Q.When did the Payment Systems and Stored Value Facilities Ordinance come into effect?
When did the Payment Systems and Stored Value Facilities Ordinance come into effect?
The Payment Systems and Stored Value Facilities Ordinance began operation on November 13 last year. It included a one-year transition period for companies to apply for stored value facilities licences.
Q.What are the consequences for operating a stored value facility without a licence after the transition period?
What are the consequences for operating a stored value facility without a licence after the transition period?
After the one-year transition period expires, it will be illegal for any person to issue or operate a stored value facility without a licence. Only exempt entities will be permitted to do so.
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