Hong Kong and China Launch ‘Payment Connect’ for Real-Time Cross-Border Transactions

The central banks of Hong Kong and mainland China have officially launched Payment Connect, a new cross-border payment infrastructure aimed at enabling faster, more efficient financial transactions between the two markets.

Launched on 22 June 2025, the initiative links China’s Internet Banking Payment System (IBPS) with Hong Kong’s Faster Payment System (FPS). The result is a real-time, interoperable payment channel that supports instant transactions for residents and businesses on both sides of the border.

According to the joint announcement, Payment Connect will allow participating financial institutions to offer real-time remittance services in both Renminbi (RMB) and Hong Kong dollars (HKD). These services cover a wide range of use cases, including salary payments, tuition fee transfers, and medical bill settlements.

To ensure smooth and secure operation, the People’s Bank of China (PBOC) and the Hong Kong Monetary Authority (HKMA) will set up a regulatory and operational coordination mechanism. The goal is to uphold regulatory compliance and maintain orderly service delivery across the two jurisdictions.

On the technical and operational front, the China National Clearing Center (CNCC) and Hong Kong Interbank Clearing Limited (HKICL) will serve as clearing hubs. They will work closely with participating banks and financial institutions to facilitate secure and seamless payment flows.

The launch of Payment Connect marks a significant step in deepening financial integration between mainland China and Hong Kong, further enhancing the convenience and connectivity of cross-boundary financial services for individuals and enterprises alike.