People's Bank of China and Hong Kong Monetary Authority to launch Payment Connect linking IBPS and FPS on 22 June 2025

The People’s Bank of China (PBoC) and the Hong Kong Monetary Authority (HKMA) issued a joint announcement confirming that the Mainland’s Internet Banking Payment System (IBPS) and Hong Kong’s Faster Payment System (FPS) will be linked through “Payment Connect” to enable real-time cross-boundary remittances for residents in both places, subject to the respective legal and regulatory requirements. Payment Connect is being implemented through cooperation between the China National Clearing Center (CNCC) and Hong Kong Interbank Clearing Limited (HKICL). Participating institutions will be able to offer convenient renminbi and Hong Kong dollar remittance services for residents under the current account, and, where relevant policies are implemented, instant remittances for use cases including salary disbursements, tuition payments and medical bills. The PBoC and HKMA will establish a collaboration mechanism under their Memorandum of Understanding on cross-boundary linkage of payment systems, while CNCC and HKICL will coordinate operational procedures and risk management with participating institutions; participating institutions must comply with applicable requirements on anti-money laundering, counter-terrorist financing, counter-proliferation financing and cross-boundary payment settlement. Payment Connect will be launched on 22 June 2025.