Hong Kong Monetary Authority Receives 16 Complaints Against Emerging Payment Platforms

On October 7, during a meeting of the Hong Kong Legislative Council, legislator Chan Chan-ying raised questions regarding the regulation of emerging payment platforms, to which Acting Secretary for Financial Services and the Treasury Chan Ho-lam responded. The inquiry pointed out that some emerging aggregation payment platforms attract small merchants with low fees and 'buy now, pay later' schemes, leading to issues of overdue payments and false entries, with some platforms operating without financial licenses. Chan Ho-lam stated that the government and financial regulatory authorities are continuously monitoring emerging payment models and taking enforcement actions within the legal framework. Consultations from the Monetary Authority and Customs indicated that from January 2024 to September 2026, the Monetary Authority received 16 complaints regarding the suspected unlicensed issuance or operation of stored value payment instruments. After investigation, one complaint was substantiated, but the complainant did not report any financial loss, and the Monetary Authority is following up with the relevant companies. The Monetary Authority regulates stored value payment instruments under the Payment Systems and Stored Value Facilities Ordinance, and issuing or operating without a license in Hong Kong is illegal. Money services engaging in currency exchange and cross-border remittances must apply for a license from Customs, and non-bank institutions providing 'buy now, pay later' services must apply for a money lender's license under the Money Lenders Ordinance. The Monetary Authority handles cases of suspected unlicensed or non-compliant activities and can collaborate with other regulatory bodies or refer cases to law enforcement agencies.

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