Hong Kong Issues First Licenses For Stored Value Facilities
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Though its population of 7.5 million is equal to that of a mid-size mainland Chinese city like Hangzhou, Hong Kong makes up for lack of people with strength in its financial markets. And news today that the Hong Kong Monetary Authority has issued stored value facilities licences is big news.
HKMA has granted stored value facilities licenses to five companies under the Payment Systems and Stored Value Facilities Ordinance: Alipay, Octopus, TNG, Money Data, and HKT Payment. Octopus’ license is effective November 13, 2016, but the other firms have effective licenses from today, August 25.
“The grant of the first batch of licenses for SVF issuers is turning a new page in the retail payment development in Hong Kong,” Norman Chan, CEO of HKMA.
The Ordinance commenced operation on November 13, 2015. Under the Ordinance, the HKMA is empowered to implement a mandatory licensing system for multi-purpose stored value facilities and perform relevant supervision and enforcement functions.
A one-year period is allowed for existing issuers of stored value facilities or new market operators to apply for stored value facilities licenses from the HKMA.
Questions & Answers
Q.Which companies received the new stored value facility licenses?
Which companies received the new stored value facility licenses?
Alipay, Octopus, TNG, Money Data, and HKT Payment were granted the first batch of stored value facility licences by the Hong Kong Monetary Authority.
Q.When did these new licences become effective?
When did these new licences become effective?
The licences for Alipay, TNG, Money Data, and HKT Payment became effective on August 25. Octopus's licence is set to become effective later, on November 13, 2016.
Q.What is the significance of these licenses for retail payments in Hong Kong?
What is the significance of these licenses for retail payments in Hong Kong?
Norman Chan, CEO of HKMA, stated that the granting of these first licences marks a new chapter in the development of retail payment systems across Hong Kong. It introduces a mandatory licensing system for multi-purpose stored value facilities.
Q.When did the Payment Systems and Stored Value Facilities Ordinance begin operation?
When did the Payment Systems and Stored Value Facilities Ordinance begin operation?
The Payment Systems and Stored Value Facilities Ordinance, which empowers HKMA to implement the licensing system, commenced operation on November 13, 2015.
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