Hong Kong warns unlicensed payment platforms of enforcement after 16 complaints to HKMA

Why it matters

The Hong Kong government issued a clear warning in an Oct. 7 written reply to the Legislative Council: payment platforms operating without the required licences face enforcement action. Acting Secretary for Financial Services and the Treasury Chan Ho-lam delivered the reply after consulting the Hong Kong Monetary Authority (HKMA) and the Customs and Excise Department, stressing regulators would act where necessary to protect customers and maintain financial stability.

The reply responded to a written inquiry from lawmaker Chan Chan-ying, who noted that emerging aggregated payment platforms have been targeting small merchants with low fees and "buy now, pay later" options, with some reported for delayed payments and false transactions while registered only as fintech companies without financial licences or disclosure of their partners and operations.

On the numbers: between January 2024 and September 2026, the HKMA received 16 complaints about suspected unlicensed issuance or operation of stored value facilities. Investigators substantiated one case, whose complainant reported no monetary loss; the HKMA is following up with the company involved and will decide on further action according to the case's progress.

Under the Payment Systems and Stored Value Facilities Ordinance, issuing or operating stored value facilities in Hong Kong without a licence is an offence unless a statutory exemption applies. The HKMA can intervene directly, coordinate with other regulators and refer matters to law enforcement agencies. Currency exchange and cross-border remittance services require a money service operator licence from Customs; non-bank "buy now, pay later" services involving lending require a money lender's licence.