Designation of retail payment systems implemented
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The Hong Kong Monetary Authority announced today (August 4) that the Monetary Authority (MA) has designated retailed payment systems operated by Visa, Mastercard, UnionPay International and American Express for the processing of payment transactions involving participants in Hong Kong (designated systems) under the Payment Systems and Stored Value Facilities Ordinance (the Ordinance).
The MA has also declared under the Ordinance that the following activities are allowed to be carried out through the respective designated systems, subject to the compliance with the applicable legal and regulatory requirements including without limitation the Personal Data (Privacy) Ordinance:
- routing of payment information and related data to facilitate processing of payment transactions;
- authorisation, clearing and settlement of payment transactions;
- provision of payment solutions to enable processing of payment transactions arising from various payment modes;
- other activities or services carried out through the system which are ancillary or incidental to (1) to (3) above; and
- payment related data analysis.
The Chief Executive of the HKMA, Mr Norman Chan, said, "Implementation of the designation regime for retail payment systems will enhance the operating standards of the local retail payment industry. It will also help strengthen public confidence in the payment systems and facilitate the development of fintech in Hong Kong. The HKMA will, in collaboration with the relevant operators, to ensure safe and efficient operation of the designated systems."
In accordance with the powers vested under the Ordinance, the MA has designated four systems which are of significant public interest. The designation of the systems and declaration of activities take effect today. The designated systems shall comply with the obligations imposed under the Ordinance and are subject to the oversight of the HKMA.
Ends/Friday, August 4, 2017
Issued at HKT 9:30
Issued at HKT 9:30
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