Hong Kong Monetary Authority (HKMA), which regulates financial establishments and money service operators in Hong Kong, also issues licenses for payment service providers. PSP permission holders are entitled to offer remittance favors in Hong Kong, including electronic remittance favors, money transfer favors and other related favors.
In order to get a PSP license in Hong Kong, there are several basic demands. The applicant must be a firm incorporated in Hong Kong. Second, the applicant must have a minimum paid-up part fund of 20,000 dollars.
Demands
In addition to these demands, the HKMA also conducts a thorough assessment of the applicant’s financial stability, operational capabilities and risk administration systems. The assessment process may take several months, and during this process the HKMA may request further info or clarification from the applicant.
To obtain a PSP license in Hong Kong, certain demands must be met. Below are the main demands that the applicant must meet:
- To be a enrolled firm in Hong Kong.
- Have a minimum authorized fund of 20,000 $.
- Have a head office in Hong Kong.
- Have a management team that is considered appropriate and qualified.
In addition, the applicant must comply with various adjustment demands and be subject to supervision by the HKMA after obtaining a PSP permission. The licensee must comply with various adjustment and guidelines issued by the HKMA, including anti-money laundering (AML) and counter-terrorist monitoring(CTF) requirements. The HKMA may also conduct regular reviews and audits to ensure that the licensee is acting in accordance with regulatory demands.
In general, acquiring a PSP license in Hong Kong is a complex and thorough operation that requires a significant investment of time, resources and expertise.
Benefits of obtaining
Obtaining a PSP license in Hong Kong can have several benefits for a firm engaged in e-payment transactions. Below are some of them:
- Geographical location: Hong Kong is located on the east coast of China, providing convenient access to a large number of Asian markets, including China, Japan, South Korea and Singapore. This location provides PSP companies with access to a wide range of customers and markets, which can be beneficial for business development.
- Developed infrastructure: Hong Kong has a well-developed infrastructure for e-payments, inclusive an extensive network of banks, payment processors and other intermediaries. This provides convenience in interaction between different payment systems and companies, which can contribute to biz growth.
- Developed economy: Hong Kong has a very developed economy and a fairly high standard of living. This may mean that the region has a large number of high-income potential customers who can use electronic payments. This can provide payment service providers permitted businesses in Hong Kong with access to higher-paying markets, which can help increase business volume and profits.
