Hong Kong lawmakers questioned the government on October 7 about how it regulates emerging payment platforms that target small merchants with low fees and buy-now-pay-later services. According to ChainCatcher, the government said regulators are monitoring the sector and taking enforcement action under the legal framework.

Acting Secretary for Financial Services and the Treasury Christopher Hui said the Hong Kong Monetary Authority and Customs had received 16 complaints from January 2024 to September 2026 alleging unlicensed issuance or operation of stored value payment facilities. One case was substantiated after investigation, and the complainant did not report any financial loss. The authority is following up with the company involved.

The reply said stored value payment facilities are regulated under the Payment Systems and Stored Value Facilities Ordinance, and issuing or operating them in Hong Kong without a license is illegal unless exempted. Money service businesses that handle currency exchange and cross-border remittances must obtain a Customs license unless exempted. Non-bank firms offering buy-now-pay-later services that involve lending must also obtain a money lender license under the Money Lenders Ordinance. Suspected unlicensed or non-compliant cases may be handled by the Hong Kong Monetary Authority, coordinated with other regulators, or referred to law enforcement.