The Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBoC) will launch a payment connect on Sunday, enabling residents in both places to make instant small-value cross-boundary remittances.

Six institutions each from the Chinese mainland and the Hong Kong Special Administrative Region will participate in the scheme upon its launch, the SAR government said in an announcement on Friday afternoon.

The institutions will roll out the service gradually, and more institutions will join over time, it added.

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The payment connect refers to the linkage between the mainland's Internet Banking Payment System and Hong Kong's FPS, which supports secure, efficient, and convenient real-time cross-boundary payment for residents and institutions in both places. It will allow Hong Kong and mainland residents to make instant small-value cross-boundary remittances by simply inputting the recipient's mobile number or account number.

On Friday, a launching ceremony for the scheme was held in Beijing. Lu Lei, deputy governor of the PBoC, officted it.

Identifying the payment connect as one of the key initiatives in strengthening cooperation between the places, HKMA Chief Executive Eddie Yue Wai-man said at the ceremony, “The connection between the faster payment systems in both places enhances the efficiency of cross-boundary payments, supporting trade activities and personnel exchange.”

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The development will further promote Hong Kong's position as an international financial center and offshore Renminbi business hub, he said.

“Payment Connect will cater to the daily needs of residents in both places for cross-boundary remittances and payments. It also signifies another milestone for the FPS (Faster Payment System) in expanding cross-boundary payment,” added Yue.

PBoC Governor Pan Gongsheng and Deputy Director of the Hong Kong and Macao Work Office of the Communist Party of China Central Committee and the Hong Kong and Macao Affairs Office of the State Council Wang Linggui also delivered remarks at the launching ceremony.

Representatives from system operators and participating institutions from the mainland and Hong Kong also attended the ceremony.

Launched by the HKMA in September 2018, the FPS system connects banks and stored-value facility operators, enabling the public to make real-time cross-bank and cross-SVFs fund transfers anytime and anywhere, by using the recipient's mobile number or email address

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In the mainland, meanwhile, the Internet Banking Payment System (IBPS) is the faster payment system, which enables users to make real-time cross-bank retail payment transactions through the mobile banking or online banking of his/her bank. By using the system, users can handle cross-bank account management, fund transfer, fund consolidation and other services without leaving home, and obtain instant transaction processing results.