South China Morning Post: HSBC’s PayMe goes global with access to 34 million merchants in 46 markets on UnionPay
2024-08-07
Hong Kong’s biggest commercial bank HSBC is expanding its PayMe digital payment platform for transactions worldwide by riding on the global network of the dominant Chinese state-controlled financial services provider UnionPay.
Starting from Thursday, PayMe’s 3.2 million users in Hong Kong will be able to create a virtual UnionPay card within the app with some simple verifications, the bank said in a statement. The virtual card will grant users access to more than 34 million merchants in 46 markets, including the mainland, the US, Japan and Australia, it added.
The app users can then make in-store payments globally by scanning the UnionPay QR code displayed at merchants, or by showing their UnionPay QR code on the PayMe app, the bank said. They can also shop online with merchants that accept UnionPay, it added.
“The partnership with UnionPay marks a significant milestone for PayMe, allowing our users to enjoy a seamless payment experience during mainland China and overseas travel – the same level of service convenience as in Hong Kong,” said Maggie Ng, general manager and head of wealth and personal banking of HSBC Hong Kong.
The bank added that its PayMe customers can enjoy a waiver on transaction fees for spending in mainland China, Hong Kong and Macau.
UnionPay is China’s home-grown alternative to Mastercard and Visa. Launched in 2002, it provides bank card services and links up a domestic network of automatic teller machines. With more than 100 million cards in use overseas, UnionPay overtook Visa as the world’s most popular provider in 2022, according to the Nilson Report.
For HSBC, the tie-up will increase customer stickiness and strengthen its market-leading position in Hong Kong’s banking market, said Kenny Ng Lai-yin, a strategist at Everbright Securities.
“HSBC promotes this e-wallet model to synergise with its banking business and expand its influence in the Hong Kong market,” he said. “PayMe’s market share will grow and the intention to use HSBC bank accounts will also be enhanced.”
Launched in 2017, the PayMe platform holds more than half of the electronic wallet market in the city of 7.4 million residents.
The versatility of PayMe with UnionPay is another milestone in efforts by regulators in Hong Kong and mainland China to make it easier for foreigners to access both markets. The State Council in March pledged to support digital payment channels and remove hurdles to transactions.
“We are very encouraged by our partnership with PayMe, one of the largest e-wallets in Hong Kong,” said Michelle Shao, general manager of UnionPay International in Hong Kong. “UnionPay QR code has the advantages of wide acceptance, safety and reliability.”
The link-up with UnionPay should increase the popularity of the PayMe payment platform, said lawmaker Robert Lee Wai-wang, who is also the CEO of Grand Capital Holdings, a financial services firm.
“Although PayMe users do not necessarily need an HSBC bank account, it may indirectly help them attract more customers by offering a wider range of products and services under its umbrella,” he said. “The collaboration can help users access more services in local and overseas markets.”
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