Hong Kong and Thailand aims to revolutionize the way travelers handle currency exchange with the launch of interoperable digital payment systems.
From December 4, residents from both regions will be able to make transactions using their local digital payment platforms, thanks to a landmark agreement between the Hong Kong Monetary Authority (HKMA) and the Bank of Thailand.
Hongkongers traveling to Thailand will be able to make purchases using the Faster Payment System (FPS), while Thai visitors in Hong Kong can pay via PromptPay at merchants accepting QR code payments.
Payments will be processed at the real-time foreign exchange rate, eliminating the need for currency exchange.
Eddie Yue Wai-man, CEO of HKMA, highlighted the benefits of this initiative at the FinTech Week, stating that Hong Kong residents can enjoy hassle-free shopping at over 8 million Thai merchants during the upcoming holiday season.
He emphasized that this development is a significant step towards enhancing the cross-border payment landscape at both retail and wholesale levels.
The digital payment system link is part of a broader collaboration between Hong Kong, Thailand, China, and the United Arab Emirates on the “mBridge” Central Bank Digital Currency project, aiming to simplify international payment settlements.
Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, underscored the importance of integrating fintech into the entire financial ecosystem, ensuring easier transactions for both inbound and outbound travelers.
The 2023 edition of FinTech Week, supported by InvestHK, marks the event’s largest turnout, hosting 540 exhibitors and over 300 speakers.
Hong Kong Chief Executive John Lee Ka-chiu expressed his enthusiasm for the fintech sector’s growth in the region, emphasizing Hong Kong’s unique position as a global financial hub and China’s major offshore financial center.
Additionally, Julia Leung, CEO of the Securities and Futures Commission, announced the release of two new guidelines addressing risk management in asset tokenization and additional protection requirements for publicly offered funds.
This innovative initiative seeks to streamline transactions for travelers between Hong Kong and Thailand, showcasing the potential of digital payment systems in transforming the global financial landscape.