【Overview of Electronic Payment Services in Hong Kong ②】”Alipay HK” and “WeChat Pay HK” from China

The second blog article of “Overview of Electronic Payment Services in Hong Kong” introduces the Chinese electronic money services “Alipay HK” and “WeChat Pay HK”. Both services originated in China, boasting a vast number of users and affiliated stores in China, and launched Hong Kong versions a few years ago. Know more about them if you are frequently travelling between Hong Kong and China.

“Alipay HK” Known for Taobao

Alipay is a well-known payment system in China, often associated with Taobao. Alipay HK is the localized electronic money service that Alipay launched in Hong Kong.

Expanding to China and Macau, Becoming a Part of Daily Life
In 2019, it became possible to shop directly in some stores in the Greater Bay Area’s nine cities (Guangdong Province, Hong Kong, Macau) without pre-exchanging foreign currency. The same year, nationwide use in China was approved, with millions of stores across the country now supporting it. This allows payments in China without using a Chinese Alipay account, although they are not integrated or compatible, so users should be cautious if they have both accounts.

Transportation support has gradually been added over the past three years, making travel between Hong Kong and China more convenient. In 2021, a QR code for fare payments was introduced for MTR (excluding Light Rail and MTR Bus), and the same year, it became usable for fares on some KMB bus routes and Fortune Ferry. By 2023, QR code payments became available for buses between Hong Kong and Shenzhen, the Shenzhen Metro, and Hong Kong’s MTR.

Alipay HK is now usable not only in China and Macau but also in popular travel destinations like Japan, South Korea, and Singapore. Additionally, some stores offer special travel campaign perks.

Cross-Border Remittance Feature Expanding Beyond China to Southeast Asia
Like BoC Pay, previously introduced, Alipay HK also offers a cross-border remittance feature. Currently, remittance destinations include China, the Philippines, and Indonesia, with plans to expand to other countries in the future.

・Remittance to China
Real-time credit to Alipay accounts is free. For remittances to default bank accounts, credit is within 15 minutes, with a fee of 25 HKD.

・Remittance to the Philippines (15 HKD fee)
Real-time credit to GCash, with the first transfer each month being free. For cash withdrawal via Cebuana or Palawan, cash can be withdrawn with a code displayed on the screen as soon as 15 minutes after transfer completion. Transfers to bank accounts credit within one business day.

・Remittance to Indonesia (15 HKD fee)
Credit can be sent to DANA, Gopay, OVO, ShopeePay, LinkAja, BCA, BNI, and all major banks in Indonesia. Credit happens as quickly as one minute, and transfer progress can be tracked in the “Transfer History”.

Functionality and Limitations Based on Verification Status
Basic functions for local store payments, including consumption vouchers, require only a phone number with no need for identity verification. However, additional functionalities and increased usage limits require uploading documents such as an ID for verification. Here’s a brief comparison between unverified and verified accounts:

	Unverified	Verified
Required Information	・Phone Number	・Phone Number ・Hong Kong ID ・Address ・Facial Verification
Balance Limit	3,000HKD	100,000HKD
Transfer Limit	3,000HKD/day	20,000HKD/day
Cash Charge Limit at Stores (in 50 HKD units)	3,000HKD/day	5,000HKD/day
Receiving Limit	25,000HKD/year	200,000HKD/year
Charge Limit	25,000HKD/year	Unlimited
Spending Limit	25,000HKD/year	Unlimited
Cross-Border Payment Limit	3,000HKD/transaction	50,000HKD/transaction
Withdrawal Limit to Bank Accounts	Not available	Unlimited
Transaction Limit for Consumption	3,000HKD/transaction	Unlimited

Regarding payments on Taobao, currently, unverified Alipay HK accounts cannot use the in-app balance for payments. However, payments can be made using a credit card linked to the account. Some cards offer free transactions, but typically, a fee of 1.3% to 1.5% is charged.

Additionally, Alipay HK has a business version for companies and stores. However, details are not provided on the official website, and you need to contact Alipay HK customer service by phone for more information.

“WeChat Pay HK” a feature of WeChat, China’s largest communication app

WeChat Pay is an electronic money feature integrated into the WeChat communication app, and its Hong Kong version is known as WeChat Pay HK. Previously, there were other international versions such as WeChat Wallet in South Africa and WeChat Pay Malaysia, but currently, only the Malaysia and Hong Kong versions remain.

Similar to Alipay HK, the balance in WeChat Pay HK is not compatible with the China version of WeChat Pay accounts. This means that funds cannot be transferred, directly transferred, or shared between the two versions. Additionally, the authentication system imposes limits based on the verification status:

Verification Status	Unverified	Unverified	Verified (Bank Transfer)	Verified (Bank Transfer + Facial Recognition)
Link with Bank Cash Card/Credit Card	No	Linked	No	No
Transaction Limit in China	Not Available	25,000HKD	100,000HKD	200,000HKD
Balance Limit	3,000HKD	3,000HKD	100,000HKD	100,000HKD

Enhanced Usage in China Leveraging the Benefits of a Communication App
Since 2018, WeChat Pay HK has been accepted at some stores in China. As of 2023, more than one million stores in China accept WeChat Pay HK. Without linking a Chinese bank account, users can engage in cross-border transactions by linking a Hong Kong bank account or credit card. During payment, the amount is automatically converted from RMB (Renminbi) to HKD (Hong Kong Dollar), eliminating the need to switch the location setting of WeChat Pay or pre-convert RMB. While there is no fee for using the balance in the app, be cautious of charges when recharging with a credit card or conducting cross-border transfers if the balance is insufficient.

The key highlight is the integration of WeChat Pay HK within WeChat, China’s largest communication app. This allows seamless interaction with WeChat Mini Programs (微信小程式), small apps within WeChat that do not require separate downloads or installations. These programs are widely used by stores, restaurants, the Chinese government, businesses, media, and other organizations or individuals when interacting with Chinese residents. As of 2018, these mini-programs have surpassed 400 million users.

The integration of WeChat Pay HK with Mini Programs enhances user experience. For instance, ordering food delivery can be done entirely within WeChat by placing an order through a mini-program and paying with WeChat Pay HK. Beyond dining, services such as purchasing high-speed rail tickets via “China Railway 12306” or booking a taxi with “DiDi” can be accessed. Similar to Alipay HK, WeChat Pay HK also supports QR code payments for transit fares. It covers buses and subways in Hong Kong, Shenzhen, and Guangzhou.

Expanding Customer Base with the Business Version
With the overseas application for WeChat Pay from the China version, Chinese tourists can use their existing WeChat Pay accounts abroad. Users pay in RMB, and WeChat settles directly with the merchant in HKD, depositing into a Hong Kong bank account. This means that by being compatible with both WeChat Pay HK and the China version of WeChat Pay, businesses can attract the maximum number of customers.

Summary

While Chinese electronic money services might raise concerns regarding data privacy and security compared to those offered by other Hong Kong companies and banks, their main attraction lies in the convenience of transactions in China. Originating from China, these services facilitate the use of Hong Kong dollars directly at over a million stores in China through automatic currency conversion in the app.

Alipay HK is appealing because it supports transactions in China while also expanding internationally. Its unique cross-border transfer feature, particularly to the Philippines and Indonesia, has garnered a significant user base in Hong Kong. Future plans to introduce this feature in more countries are highly anticipated.

On the other hand, WeChat Pay HK’s greatest advantage is its integration with WeChat, China’s largest communication app, especially through its mini-programs. This integration enhances convenience for everyday payments in China, offering robust features aimed at Chinese residents. This makes WeChat Pay HK particularly attractive for users who frequently travel between Hong Kong and China.