HK ready for mobile payment

March 27, 2013

Hong Kong is well-positioned to benefit from the use of payment systems by mobile phones using Near Field Communication, or NFC.
 
The Monetary Authority today announced the results of a consultancy study on developing the infrastructure needed for the technology, which affirms Hong Kong’s promising market conditions for rapid adoption of NFC services. There is strong consumer acceptance of contactless payment and wide use of smartphones, as well as an increasing availability of NFC-enabled phones, the study said.
 
It also said the market is moving towards a market-driven approach in which certain industry players are expected to implement shared infrastructure to help participants offer NFC payment services that work together. 
 
The authority said it agrees with the analysis and will continue to monitor developments in the market to facilitate infrastructure development, while ensuring interoperability principles can be achieved.
 
As part of the study, the consultant produced a draft set of standards and guidelines covering interoperability requirements between devices and systems, operation guidelines for NFC mobile payment services, and security measures for mobile wallet protection and payment transaction processing. 
 
An industry working group will be formed under the Association of Banks to discuss and finalise guidelines and standards by the second half of 2013.