【Overview of Electronic Payment Services in Hong Kong ①】”PayMe” and “BoC Pay” from Major Banks

In “Overview of Electronic Payment Services in Hong Kong”, we will introduce six major electronic payment services in Hong Kong that have been supporting the Hong Kong government’s consumption vouchers. In this first part, we’ll cover the electronic payment services “PayMe” and “BoC Pay” operated by major banks in Hong Kong.

Stay updated on the latest payment information essential for life in Hong Kong and frequent payment scenarios in business.

Payment Situation in Hong Kong

Like global trends, payment methods in Hong Kong are evolving rapidly. While credit cards were prevalent in both in-store and online transactions, the use of electronic money is rapidly increasing, predicted to surpass credit cards by 2026.

Additionally, Account-to-Account (A2A) payment services are on the rise, projected to become 18% of the e-commerce market share by 2026. With the proliferation of electronic money, cash’s share is diminishing, as Hong Kong is entering a high-tech-driven financial era.

“PayMe” by HSBC

PayMe debuted on February 7, 2017, as a pioneering P2P mobile payment app to facilitate interbank transactions in Hong Kong.

In collaboration with local e-commerce giant Hong Kong TV Shopping Network (HKTVmall), PayMe began partnering with businesses in June 2018, announcing plans for a Person-to-Merchant (P2M) solution the same year. In early 2019, PayMe introduced “PayMe for Business” which includes P2M commercial transactions.

This advancement led to over 10,000 companies and stores, including popular businesses like McDonald’s, 7-Eleven, and Wellcome, started to support PayMe payments. By May 2022, the Hong Kong government added PayMe as one of its distribution partners for consumption vouchers, ignited the increase user and merchant numbers. By November of the same year, over 30,000 entities were onboarded, and as of November 2022, PayMe boasts approximately 2.9 million users, commanding an astounding 50% market share in Hong Kong’s consumer payment landscape.

Payment Mechanism
PayMe allows users to charge electronic money via credit cards or linked bank accounts, transfer funds to acquaintances or stores, and refund balances. Users can make payments with any Hong Kong bank account or credit card without additional fees.

For Person-to-Person (P2P) transfers, users can utilize WhatsApp, FB Messenger, or SMS messages alone, without the need for a QR code or the recipient’s bank account number. Conversely, the “Payment Request” feature for collecting payments is a convenient tool for instant transactions, accessible anytime, anywhere.

・The personal version allows fee-free P2P and P2M transactions via mobile numbers, dedicated URLs, or QR codes.

・In the business version, “PayMe for Business,” consumers can make payments to a wide range of retail stores and online shops by scanning QR codes. (Standard fees apply: 1.2% for transactions using the PayMe for Business app; 1.5% for transactions using the PayMe API or POS terminals.

To register for the business version, users need a mobile phone number, email address, and an HSBC Business e-Banking account. Apart from facilitating payments with government consumption vouchers, other benefits include:
　・Integration with existing POS systems or PayMe’s partner provider’s POS devices, offering flexibility and scalability.
　・Free access to a dedicated management platform for PayMe for Business, consolidating transaction and sales data, facilitating real-time transaction tracking, aiding in formulating sales strategies, and fostering business growth.

“BoC Pay” by Bank of China (Hong Kong)

BoC Pay, operated by Bank of China, offers a new solution for cross-border payments for Hong Kong residents.

Key Features include:
・ Payment at stores supporting UnionPay QR codes or Faster Payment Service (FPS) QR codes. Payment is also possible at UnionPay QR code supported stores in China.
・P2P transfers via FPS, allowing transfers using phone numbers, email addresses, bank account numbers, FPS IDs, or FPS QR codes.
・Able to handle cross-border transfers to other Chinese residents, or the user’s account in Chinese banks, without needing a foreign currency account.
・Using coupons with BoC Pay.

Cross-Border Transfers to China
While BoC Pay facilitates cross-border transfers, there are several criterias:
・Users must own a Bank of China (Hong Kong) account.
・Recipients must have a Chinese ID.
・Transfers are only supported to 7 major banks in China, including Bank of China, Agricultural Bank of China, and Industrial and Commercial Bank of China.
・The minimum transfer amount is HK$2,000 per transaction, with a daily limit of HK$10,000.
・Exchange rates are automatically determined based on the daily UnionPay exchange rate updated around 11 a.m.
・Transaction fee is 1% of the HKD transfer amount (HK$20 to HK$60), borne by the sender.
・Transfers cannot be cancelled after confirmation.

Business Version “BoC Bill Merchant”
In the business version capable of commercial transactions, there are more features available:
・Granting your staff “cashier” privileges to support payment collection and refunds.
・Real-time sales tracking, which facilitates data analysis and statistics.
・Payments can be collected using customers’ BoC Pay, UnionPay QR codes, Alipay, WeChat Pay, and FPS QR codes.

Note that while owning a Bank of China Hong Kong corporate account is not necessary to apply for BoC Bill Merchant, applicants must provide their Hong Kong Business Registration Certificate number and phone number.

The transaction limits for this business version app are HK$600 per transaction (if the customer enters the amount by scanning the QR code) or HK$2,500 per transaction (if set by the company/store and paid by scanning the QR code by the customer), with daily limits of HK$4,000 and monthly limits of HK$80,000. As of August 2023, there is no annual fee, and a transaction fee of 0.5% applies.

Summary

In summary, bank-operated electronic money services offer significant advantages in terms of reliability and security comparing to those provided by other companies. This guarantees a higher level of security for users’ financial transactions and personal data.

PayMe, with a large user base in Hong Kong, facilitates easy person-to-person transfers using messages or phone numbers in addition to QR codes. Its business version offers flexible integration methods with POS systems and provides a free management platform to consolidate sales data, making it easier to formulate sales strategies and support business growth.

On the other hand, BoC Pay provides a solution for cross-border payments and transfers to China, accommodating a broader user base. Residents with addresses in Hong Kong who are of Chinese, Hong Kong, or Macau nationality can apply, making it ideal for Hong Kong users who frequently travel to China or Macau. Although transactions are limited to QR codes, the business version supports multiple QR codes from different electronic money services Alipay or WeChat Pay, allowing payment collection through a single app.