Hong Kong's Financial Secretary Says FPS Will Partner with UnionPay International to Streamline Cross-Border Payments

At the Hong Kong FinTech Week, Hong Kong's Financial Secretary Paul Chan stated that the city will focus on efficiency, inclusivity, and trust to translate fintech advancements into tangible economic benefits.

The Faster Payment System (FPS) has registered over 22 million users, with average daily HKD transaction volume reaching HK$16.2 billion last year.

Following its connections with payment systems in Mainland China and Thailand, the FPS system will now collaborate with UnionPay International to support QR code payments across Hong Kong, Mainland China, and over 40 overseas markets, covering more than 100 million merchants, thereby further facilitating cross-border transactions.

Chan emphasized that the key to enhancing efficiency lies in connecting financial systems, not merely accelerating the operation of individual systems.

Interconnectivity of payment networks allows citizens to use familiar payment tools in more regions, while merchants can receive cross-border payments more conveniently; linking tokenized assets with digital currencies also helps improve transaction and settlement efficiency.

Globally, unmet trade financing demand stands at US$2.5 trillion.

Hong Kong is helping SMEs overcome collateral shortages through commercial data.

Specifically, the Commercial Data Interchange, launched in 2022, has facilitated over 125,000 SME loan applications and approvals, involving nearly HK$110 billion in credit.

Chan noted that both efficiency and inclusivity are built on trust.

Currently, the secondary market liquidity for tokenized assets is still being developed, and the large-scale application of stablecoins remains in the testing phase.

He stressed that fintech should not remain at the pilot project stage but should effectively help enterprises receive payments, secure financing, and pay overseas suppliers more quickly and reliably.

The Hong Kong government will provide a clear regulatory framework and reliable infrastructure to encourage the industry to implement more fintech applications in the city, benefiting businesses and citizens alike.