The Hong Kong government responds to the regulation of emerging payment platforms, with the Monetary Authority receiving 16 complaints

On October 7, at a meeting of the Hong Kong Legislative Council, legislator Chan Chun-ying raised a written inquiry regarding the regulation of emerging payment platforms. The Acting Secretary for Financial Services and the Treasury, Chan Ho-lam, provided a written response. The inquiry pointed out that in recent years, new aggregation payment platforms have emerged, reaching out to small merchants with low fees and "buy now, pay later" methods. Some platforms have reported overdue payments and false entries, and there are platforms that are registered only as financial technology companies, without obtaining financial licenses, and have not disclosed their partner organizations or operational status.

Chan Ho-lam stated that the government and financial regulatory agencies continue to monitor emerging payment models and take enforcement actions within the statutory framework. After consulting the Monetary Authority and Customs, from January 2024 to September 2026, the Monetary Authority received 16 complaints regarding the suspected unlicensed issuance or operation of stored value payment tools. After investigation, one was substantiated, and the complainant did not report any financial loss. The Monetary Authority is following up with the relevant companies.

The response pointed out that the Monetary Authority regulates stored value payment tools under the Payment Systems and Stored Value Facilities Ordinance. Unless legally exempt, issuing or operating without a license in Hong Kong is illegal. Money services that operate currency exchange and cross-border remittances must apply for a license from Customs unless exempted. Non-bank institutions providing "buy now, pay later" services involving loan activities must apply for a money lender license under the Money Lenders Ordinance. Cases suspected of being unlicensed or non-compliant are handled by the Monetary Authority, which may collaborate with other regulatory agencies or refer to law enforcement departments.