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Simon H WANG
Aug 6, 2020, 1:51:12 AM8/6/20
to Hongkong Monetaryauthority, ge-capstone-...@googlegroups.com
Dear Sir/Madam
I’m writing to seek information about the FPS system:
1. In what ways can FPS be used to facilitate mobile payments without involving proprietary apps such as Alipayhk or Octopus?
2. How many transactions have been made via FPS in 2019? What percentage of these transactions are for retail purposes?
3. What measures have been taken to promote FPS among retailers in HK especially those in the wet market?
4. How could retailers and small businesses adopt FPS to support mobile payments? How much does it cost to set up and maintain the system?
5. Are there resources available from HKMA to support small businesses with interest in using FPS?
Please process my request of information under the Code on Access to Information. Thanks in advance for your assistance.
Yours sincerely
Simon Wang
Simon Wang, Ph.D.
Lecturer
Language Centre
Hong Kong Baptist University
Kowloon Tong, Hong Kong
Writing for the Public Project
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Simon H WANG
Aug 16, 2020, 8:01:11 PM8/16/20
to bank.o...@za.group
Dear Sir/Madam
Dear Dr. Wang,
Thank you for your email. Please find our reply marked in blue below:
Q1: In what ways can FPS be used to facilitate mobile payments without involving proprietary apps such as Alipayhk or Octopus?
The FPS is a financial infrastructure enabling instant payments in Hong Kong by connecting different banks and stored value facility (SVF), commonly known as e-wallet, operators. By providing an open platform for access by banks and e-wallet operators, the FPS provides a level playing field for healthy competition among payment service providers. It will be up to individual persons or businesses to decide which bank or e-wallet they may want to use when making/receiving payments via the FPS. Meanwhile, banks and e-wallets operators may ride on the FPS platform, subject to their business models, to develop and offer their own payment products and services to their customers, thus promoting innovation and bringing more efficient and user-friendly services to the public. In addition, small-value P2P transfer service is free of charge that can further promote the adoption of e-payment in Hong Kong.
The HKMA has also worked closely with various government departments to assist them in using the FPS to accept bill payments from the public. Since November 2019, the public can easily scan the FPS QR codes printed on their bills to pay taxes, rates and Government rents and water charges with supporting mobile banking apps and e-wallets. The FPS makes available efficient and convenient payment services to the general public and corporates, which can further promote the adoption of e-payment in Hong Kong.
You may refer to the following hyperlinks for more information on FPS.
• inSight - One Year On since SVF Licences were First Granted
https://www.hkma.gov.hk/eng/news-and-media/insight/2017/08/20170824/
• inSight - A New Era of Smart Banking (Chinese Version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2017/09/20170929/
• inSight - Smart Banking Era: A Big Step Forward (Chinese Version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2017/10/20171025/
• inSight - Building a Diversified, Inclusive and Convenient Payment Ecosystem
https://www.hkma.gov.hk/eng/news-and-media/insight/2017/11/20171113/
• inSight - Launch of the Faster Payment System
https://www.hkma.gov.hk/eng/news-and-media/insight/2018/09/20180917/
• inSight – Embracing Technology for New Trends (Chinese version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2019/11/20191106/
• inSight - FPS Fights the Epidemic with You
https://www.hkma.gov.hk/eng/news-and-media/insight/2020/04/20200424/
Q2: How many transactions have been made via FPS in 2019? What percentage of these transactions are for retail purposes?
As of end-December 2019, the FPS recorded 4 million registrations1 and processed 44 million transactions involving an aggregate amount of HK$748.5 billion and RMB 17 billion. In December 2019, average daily turnover reached 168,000 transactions worth HK$2.4 billion and RMB 38 million as compared with 51,000 transactions during its first full month of operation in October 2018.
With the joint efforts with the industry in promoting the FPS, we have seen continuously increasing adoption of the FPS. The number of participants has increased to 34 banks and 12 SVFs, with an addition of thirteen banks and two SVFs after the launch. As of 31 July 2020, the FPS recorded 5.7 million registrations. The turnover of the FPS rose significantly under the epidemic in the first seven months this year. The average daily turnover reached 401,000 real-time transactions (worth HKD 4 billion and RMB 59 million) in July 2020, more than twice of the 168,000 real-time transactions in December 2019 or sixfold of that in September 2018 when the FPS was launched. The FPS registrations at end-July 2020 rose by 42% from end-December 2019, corresponding to 1.7 million registrations.
Available breakdowns of the data are shown in our monthly statistics table (3.12.2-3.12.6):
https://www.hkma.gov.hk/eng/data-publications-and-research/data-and-statistics/monthly-statistical-bulletin/
1The number of registrations does not represent the number of users, as one user may register more than one account proxy (such as mobile number and email address), which may be linked to more than one account.
Q4: How could retailers and small businesses adopt FPS to support mobile payments? How much does it cost to set up and maintain the system?
Retailers or small businesses may contact banks and e-wallet operators for information on merchant payment services via the FPS. Banks and e-wallet operators can assist them in collecting payments via the FPS using different solutions, which may include printing a QR code on bills, presenting a QR code online or at the point-of-sale (POS), and invoking a payment app from a mobile app for making payment etc.
The FPS does not charge the merchants on receiving payments. Indeed, banks/e-wallet operators are the direct service providers for merchants to receive funds via the FPS. Merchants may contact their banks/e-wallet operators for details on the relevant products and services offered by banks/e-wallet operators, and the corresponding fees and charges.
Please refer to the following hyperlink for more details:
https://fps.hkicl.com.hk/eng/fps/merchants/overview.php
Q3: What measures have been taken to promote FPS among retailers in HK especially those in the wet market?
Q5: Are there resources available from HKMA to support small businesses with interest in using FPS?
HKMA has worked with various industry associations or trade promotion forums/bodies to provide briefings on the FPS. We also participated in trade fairs to promote the FPS to small and medium-sized enterprises (SMEs) and corporates so as to promote its usage. Enhancements were also made to enable merchants to use a variety of proxy identifiers and accept partial or over-payments via a QR code. Furthermore, a technical specification was developed to facilitate the invocation of a mobile banking or e-wallet app from a business mobile app for FPS payment. This would greatly improve customer experience in making merchant and business payments via the FPS using mobile devices.
The HKMA will continue the promotional work through continued engagement with various industries, holding roving exhibitions and participation at trade fairs so as to promote public understanding and use of the FPS. Retailers or other entities interested in using the FPS to make or receive payments may approach FPS participating banks or e-wallet operators to find out more details.
Best regards,
Florence Lui
Access to Information Officer
Hong Kong Monetary Authority
----------------------------------------- Reply History -----------------------------------------
I refer to the appended email reply from HKMA regarding the use of FPS for mobile payment. The HKMA says that small businesses in HK should approach individual banks for help to set up mobile payments involving FPS. I wonder if ZA Bank provides any of such services for small businesses in HK. As a regular contributor to SCMP letters section (https://padlet.com/simonwanghkbu/scmpletters) and a teacher at Baptist University, I am exploring different ways for the government and my students to promote mobile payments among small businesses as an effort to fight Covid-19 and to build a smart city in HK. I hope your bank could provide me some ideas and information on this issue so I can work with my students to further pursue this goal. Many thanks in advance for your information and advice.
Yours sincerely
Simon Wang
---------- Forwarded message ---------
From: <public...@hkma.gov.hk>
Date: Fri, Aug 14, 2020 at 4:58 PM
Subject: Re: Promoting Fast Payment System among small businesses
To: Simon H WANG <simo...@hkbu.edu.hk>
From: <public...@hkma.gov.hk>
Date: Fri, Aug 14, 2020 at 4:58 PM
Subject: Re: Promoting Fast Payment System among small businesses
To: Simon H WANG <simo...@hkbu.edu.hk>
Dear Dr. Wang,
Thank you for your email. Please find our reply marked in blue below:
Q1: In what ways can FPS be used to facilitate mobile payments without involving proprietary apps such as Alipayhk or Octopus?
The FPS is a financial infrastructure enabling instant payments in Hong Kong by connecting different banks and stored value facility (SVF), commonly known as e-wallet, operators. By providing an open platform for access by banks and e-wallet operators, the FPS provides a level playing field for healthy competition among payment service providers. It will be up to individual persons or businesses to decide which bank or e-wallet they may want to use when making/receiving payments via the FPS. Meanwhile, banks and e-wallets operators may ride on the FPS platform, subject to their business models, to develop and offer their own payment products and services to their customers, thus promoting innovation and bringing more efficient and user-friendly services to the public. In addition, small-value P2P transfer service is free of charge that can further promote the adoption of e-payment in Hong Kong.
The HKMA has also worked closely with various government departments to assist them in using the FPS to accept bill payments from the public. Since November 2019, the public can easily scan the FPS QR codes printed on their bills to pay taxes, rates and Government rents and water charges with supporting mobile banking apps and e-wallets. The FPS makes available efficient and convenient payment services to the general public and corporates, which can further promote the adoption of e-payment in Hong Kong.
You may refer to the following hyperlinks for more information on FPS.
• inSight - One Year On since SVF Licences were First Granted
https://www.hkma.gov.hk/eng/news-and-media/insight/2017/08/20170824/
• inSight - A New Era of Smart Banking (Chinese Version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2017/09/20170929/
• inSight - Smart Banking Era: A Big Step Forward (Chinese Version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2017/10/20171025/
• inSight - Building a Diversified, Inclusive and Convenient Payment Ecosystem
https://www.hkma.gov.hk/eng/news-and-media/insight/2017/11/20171113/
• inSight - Launch of the Faster Payment System
https://www.hkma.gov.hk/eng/news-and-media/insight/2018/09/20180917/
• inSight – Embracing Technology for New Trends (Chinese version only)
https://www.hkma.gov.hk/chi/news-and-media/insight/2019/11/20191106/
• inSight - FPS Fights the Epidemic with You
https://www.hkma.gov.hk/eng/news-and-media/insight/2020/04/20200424/
Q2: How many transactions have been made via FPS in 2019? What percentage of these transactions are for retail purposes?
As of end-December 2019, the FPS recorded 4 million registrations1 and processed 44 million transactions involving an aggregate amount of HK$748.5 billion and RMB 17 billion. In December 2019, average daily turnover reached 168,000 transactions worth HK$2.4 billion and RMB 38 million as compared with 51,000 transactions during its first full month of operation in October 2018.
With the joint efforts with the industry in promoting the FPS, we have seen continuously increasing adoption of the FPS. The number of participants has increased to 34 banks and 12 SVFs, with an addition of thirteen banks and two SVFs after the launch. As of 31 July 2020, the FPS recorded 5.7 million registrations. The turnover of the FPS rose significantly under the epidemic in the first seven months this year. The average daily turnover reached 401,000 real-time transactions (worth HKD 4 billion and RMB 59 million) in July 2020, more than twice of the 168,000 real-time transactions in December 2019 or sixfold of that in September 2018 when the FPS was launched. The FPS registrations at end-July 2020 rose by 42% from end-December 2019, corresponding to 1.7 million registrations.
Available breakdowns of the data are shown in our monthly statistics table (3.12.2-3.12.6):
https://www.hkma.gov.hk/eng/data-publications-and-research/data-and-statistics/monthly-statistical-bulletin/
1The number of registrations does not represent the number of users, as one user may register more than one account proxy (such as mobile number and email address), which may be linked to more than one account.
Q4: How could retailers and small businesses adopt FPS to support mobile payments? How much does it cost to set up and maintain the system?
Retailers or small businesses may contact banks and e-wallet operators for information on merchant payment services via the FPS. Banks and e-wallet operators can assist them in collecting payments via the FPS using different solutions, which may include printing a QR code on bills, presenting a QR code online or at the point-of-sale (POS), and invoking a payment app from a mobile app for making payment etc.
The FPS does not charge the merchants on receiving payments. Indeed, banks/e-wallet operators are the direct service providers for merchants to receive funds via the FPS. Merchants may contact their banks/e-wallet operators for details on the relevant products and services offered by banks/e-wallet operators, and the corresponding fees and charges.
Please refer to the following hyperlink for more details:
https://fps.hkicl.com.hk/eng/fps/merchants/overview.php
Q3: What measures have been taken to promote FPS among retailers in HK especially those in the wet market?
Q5: Are there resources available from HKMA to support small businesses with interest in using FPS?
HKMA has worked with various industry associations or trade promotion forums/bodies to provide briefings on the FPS. We also participated in trade fairs to promote the FPS to small and medium-sized enterprises (SMEs) and corporates so as to promote its usage. Enhancements were also made to enable merchants to use a variety of proxy identifiers and accept partial or over-payments via a QR code. Furthermore, a technical specification was developed to facilitate the invocation of a mobile banking or e-wallet app from a business mobile app for FPS payment. This would greatly improve customer experience in making merchant and business payments via the FPS using mobile devices.
The HKMA will continue the promotional work through continued engagement with various industries, holding roving exhibitions and participation at trade fairs so as to promote public understanding and use of the FPS. Retailers or other entities interested in using the FPS to make or receive payments may approach FPS participating banks or e-wallet operators to find out more details.
Best regards,
Florence Lui
Access to Information Officer
Hong Kong Monetary Authority
----------------------------------------- Reply History -----------------------------------------
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