Cross Border Payment Connect Guide | Generated by AI
Here’s a comprehensive guide on how Payment Connect links Hong Kong’s Faster Payment System (FPS) and mainland China’s Internet Banking Payment System (IBPS), and how you can use it for transfers between HSBC Hong Kong and China Merchant Bank (CMB):
What is Payment Connect?
Payment Connect is a real-time cross-border payment link between Hong Kong’s Faster Payment System (FPS) and mainland China’s Internet Banking Payment System (IBPS). Launched on June 22, 2025, it enables instant, secure, and low-cost transfers between Hong Kong and mainland China using just a mobile number or email address. This system is designed for both individuals and businesses, supporting daily transactions such as salaries, travel expenses, education fees, and more.
How Payment Connect Works
- Linkage: FPS (Hong Kong) is directly connected to IBPS (mainland China), allowing users to send and receive funds across the border in real time.
- Participants: Over 17 million FPS users in Hong Kong can now transfer up to HK$10,000 per day to 298 million IBPS users in mainland China.
- Supported Banks: HSBC Hong Kong, China Merchant Bank (CMB), and several other major banks are part of this network. HSBC, Standard Chartered, and Bank of Communications also allow Hong Kong residents to open mainland bank accounts remotely, facilitating easier cross-border transactions.
How to Use Payment Connect for Transfers
1. Prerequisites
- HSBC Hong Kong Account: Ensure you have an active HSBC Hong Kong account with FPS enabled. You can register your mobile number or email as your FPS ID.
- China Merchant Bank (CMB) Account: The recipient must have a CMB account linked to IBPS, with a registered mobile number or email as their IBPS ID.
2. Transfer Process (HSBC HK to CMB)
- Log in to your HSBC Hong Kong mobile banking app or online banking.
- Select “FPS Transfer” and choose the option for cross-border transfer to mainland China.
- Enter Recipient Details: Use the recipient’s mainland China mobile number or email address (linked to their CMB IBPS account).
- Enter Amount: The daily limit is HK$10,000 per linked bank account.
- Confirm and Send: Review the details and confirm the transfer. The funds will be credited instantly to the recipient’s CMB account in RMB.
3. Transfer Process (CMB to HSBC HK)
- The process is similar: the sender in mainland China uses their CMB app, selects the cross-border FPS option, enters your HSBC FPS ID (mobile/email), and sends the funds.
Key Features and Limits
- Speed: Transfers are processed in real time, 24/7.
- Fees: Typically low or free for personal transfers; check with your bank for business or large transactions.
- Currency: Transfers are automatically converted from HKD to RMB (or vice versa) at the prevailing exchange rate.
- Daily Limit: HK$10,000 per account per day for personal transfers.
Supported Banks and Remote Account Opening
- HSBC Hong Kong: Supports FPS and cross-border transfers via Payment Connect. You can also open a mainland China account remotely through HSBC if needed.
- China Merchant Bank (CMB): Participates in IBPS and supports receiving funds via Payment Connect. For sending, ensure your CMB account is linked to IBPS.
Benefits
- Convenience: No need to visit a bank branch; transfers can be done via mobile apps.
- Cost-Effective: Lower fees compared to traditional SWIFT or telegraphic transfers.
- Security: Backed by the Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBoC).
Important Notes
- Recipient Registration: The recipient must have their mobile number or email registered with their bank’s IBPS/FPS service.
- Transaction Limits: Currently, the service is optimized for small to medium-sized transactions.
- Future Expansion: More banks and features (such as QR code payments) are expected to be added.
Would you like step-by-step screenshots or further details on setting up FPS/IBPS IDs for either bank?