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HK gets new digital payment solution

According to a recent report, a major Hong Kong bank announced the launch of its payment solution, an app that enables the bank’s credit cardholders to settle one-off or recurring payments on the app using their credit card while earning Points at the same time.

According to the bank, the types of payment the app covers include monthly rental, monthly carpark fees, residential property management fees, and tuition fees. It was noted that clients no longer need to settle these transactions using cash, checks or autopay, giving them more autonomy and flexibility in payment options.

It was also noted that the solution is available to all of the bank’s cardholders and can be activated instantly in a few simple steps via the app. Upon logging into the app and going to the “Payment” page, clients only need to choose between “single payment” or “recurring payments” for up to two years; provide the necessary payment details such as recipient’s name, bank account number, and the amount to be settled; and finally select the credit card to be used to settle the payment.

Clients will receive a payment alert when the transaction is debited from their credit card and the full transaction amount including any applicable fees will be reflected in the credit card statement.

Speaking about the solution, the Head of Cards and Unsecured Lending at the bank stated that the financial institution is constantly looking for further enhancements to deliver a remarkable client experience by leveraging its technology, based on its understanding of client spending behaviours and needs.

With the launch of the solution, the bank not only gives its clients an alternative means to make their payments easily and smartly through the mobile app but also offer them more value on their regular spending.

Hong Kong: the ideal place to push online banking tech

While the aforementioned bank did not apply for an HKMA banking licence, a report notes that the financial institution has instead chosen to focus on its existing digital operations.

The bank’s chief executive stated that the company will continue to expand its business in China over the next few years on a foundation of digital data, client excellence, strong brand and durable partnerships. That includes future development in the “Greater Bay Area”.

It was noted that the bank will not miss the GBA opportunity and is looking to get involved as soon as possible. The company is working to find the right digital way to access and be relevant in the Greater Bay Area.

The Hong Kong Government is enabling this. By giving out virtual banking licences and creating a conducive and welcoming business environment, the region is growing into Asia’s largest fintech hub.

A recent report noted that the benefit of virtual and online banking is that more people can gain access to financial services in under-served markets.

Increased competition is also expected to lead to lower service charges and higher interest paid on savings accounts. From the banks’ perspective, operating only digitally reduces costs as they don’t need to rent or acquire space for branches and hire tellers to run the operations, although they will still need back-office and support staff.

Overall, while the aim is to diversify and digitally transformation Hong Kong’s economy and banking structure, the repercussions of these moves are benefitting citizens greatly.

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