The Hong Kong Monetary Authority (HKMA) has outlined details of its updated regulatory regime for retail payment systems, reinforcing oversight of payment networks, clearing and settlement processes used by individuals and businesses.

The framework forms part of broader efforts to modernise retail payment regulation, support e-wallets and stored value facilities, and maintain operational resilience in the city’s payment infrastructure.

Definition and scope of retail payment systems regulation

Under the Payment Systems and Stored Value Facilities Ordinance (PSSVFO), a retail payment system is defined as any system or arrangement used for the transfer, clearing or settlement of payment obligations arising from day-to-day retail activities, whether conducted within Hong Kong or involving Hong Kong participants.

The HKMA has responsibility for designating key payment systems and supervising their ongoing operation.

The regulatory regime covers payment networks used by individuals and non-corporate users that support purchases or payments. It also encompasses the associated instruments and procedures that make up such systems.

Designated systems must meet statutory standards for security, efficiency and reliability, and operators are required to demonstrate adherence to these standards in daily operation.

Designated systems and oversight priorities

As of the latest regulatory update, the HKMA has designated several major card and payment networks under the PSSVFO framework, including systems operated by global brands such as Visa, Mastercard, UnionPay International and American Express, as well as locally important networks such as JETCO and EPS.

These designations mean the HKMA oversees how these systems handle payment flows, ensure operational stability and manage risk.

Supervision of retail payment systems is designed to minimise disruption to the payments ecosystem and maintain public confidence in everyday digital payments.

Operators of designated systems are expected to comply with the legal requirements of the ordinance and can be subject to enforcement measures if standards are not met.

Broader context: stored value facilities and financial infrastructure

The regulatory regime for retail payment systems operates alongside the HKMA’s oversight of stored value facilities (SVFs) — systems such as e-wallets and prepaid cards that hold value for future payment use.

SVFs are subject to a separate licensing regime under the same ordinance, with licence applicants assessed against criteria including governance, risk controls and financial resources.

These measures form part of Hong Kong’s broader strategy to modernise payment infrastructure amid increasing digital payment adoption and evolving financial technology innovation.

They align with wider regulatory developments, including frameworks for stablecoins and virtual asset services, which also intersect with payment system operations and financial stability considerations.

The updated regime seeks to ensure that retail payment systems remain robust, secure and capable of serving both consumers and business users as digital payments continue to expand across Hong Kong’s financial ecosystem.