On Monday (December 4), Thailand and the Hong Kong Special Administrative Region of China launched a QR code-based cross-border payment service. The aim is to provide travelers with a fast, secure, and accessible retail payment experience.
In a collaboration between Thailand's PromptPay and Hong Kong's Faster Payment System (FPS), customers can use their mobile payment app to scan QR codes presented by merchants for easy and efficient transactions. On the merchant side, they receive payment instantly. This information was announced in a joint press release by the Bank of Thailand (BOT) and the Hong Kong Monetary Authority (HKMA).
Thai visitors in Hong Kong will be able to use their PromptPay app at over 50,000 merchants using FPS in Hong Kong. Conversely, Hong Kong travelers can use their FPS app at over one million PromptPay merchants in Thailand.
It is worth noting that there is a daily payment limit. Hong Kong travelers can make transactions up to HK$10,000 (US$1,279), while Thai travelers can spend up to 500,000 baht (US$14,149) per day.
The collaboration for this initiative has been realized through the involvement of various stakeholders from both jurisdictions, under the joint supervision of the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT). Some of the parties involved in this collaboration include Hong Kong Interbank Clearing Limited (HKICL) and National ITMX (NITMX), which act as instant payment system operators.
On the other hand, there are HSBC Hong Kong and Bangkok Bank, which act as settlement banks in this initiative, responsible for the cross-border settlement of this service. In total, seven banks and two non-bank stored value facilities from Hong Kong and three commercial banks from Thailand are participating in this cooperation.
According to the Governor of the Bank of Thailand, Sethaput Suthiwartnarueput, this cooperation reflects a very important step towards a more connected and digitized financial landscape in the region.
Sethaput also stated that this cross-border payment system using QR codes is expected to bring concrete benefits to 1.5 million travelers from Hong Kong and Thailand. This is expected to increase the level of convenience for travelers while supporting tourism activities and economic growth for both countries.
Meanwhile, the Chief Executive of the Hong Kong Monetary Authority, Eddie Yue, said that this service is a historic step for the Hong Kong FPS in developing its usability for cross-border payments.
