The True Mobile Paymentand the Opportunities &

Challenges of Hong Kong

Emil Chan

ACMCP.ORG

- B2B (BMM)

- (ISBT)

- (RMSM)

• 富信亞洲有限公司⾏政總裁、⾹港科學園初創企業iMusicTech CTO 曾任職瑞信，並在 BayernLB銀⾏服務逾17年，歷任電腦部副主管、⾏政部主管、第⼀副總裁兼亞太區資訊科技部主管

• 應屆雲端與流動運算專業⼈⼠協會會⾧，推動商界與學界積極應⽤互聯網技術 • ⾹港互聯網專業協會（iProA）副會⾧ • ⾹港IBM⽤⼾協會主席 • ⾹港政府主辦之資訊科技獎Hong Kong ICT Awards 2014最終評審委員 • 廣東省計算器學會主辦之泛珠三⾓⼤學⽣計算機作品賽評委 • 現任⾹港聖約翰救傷隊董事委員會IT顧問 • 本屆於⾹港及新加坡舉辦之 ComputerWorld 2013 ⾦融創新論壇（Finance Innovation Forum 2013）主持⼈ • 現任⾹港政府幫助弱勢社群移動應⽤程式開發贊助計劃諮詢委員會委員 • 現任⾹港政府勞⼯及福利局社區投資共⽤基⾦社會資本摯友 • 現任⾹港城市⼤學電⼦⼯程系教育綱領咨詢委員會成員 • ⾹港⼤學SPACE中國商業學院研究⽣課程客席講師 • 中國建設銀⾏電⼦銀⾏及信⽤卡內部培訓專家顧問 • ⾹港銀⾏學會專家顧問 • 華南理⼯⼤學科技園華⼯旭培訓中⼼MBA課程客席講師 • 近年經常透過業界及公眾之研討會和媒體，發表他對⾹港資訊科技及互聯網⾦融在⼈材培訓、個⼈私隱與社交網路問題和雲

端運算與移動計算技術應⽤上之意⾒ • 主修應⽤電腦學，於2006年取得美國北愛荷華⼤學⼯商管理碩⼠學位。擁有神經語⾔程式（NLP）導師等專業資格

Emil Chan

Our Online Identities

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The Basic of Commerce

Paul Volcker

The only thing useful banks have invented in 20 years is the ATM

A cheque is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued

Although forms of cheques have been in use since ancient times and at least since the 9th century, it was during the 20th century that cheques became a highly popular non-cash method for making payments and the usage of cheques peaked. By the second half of the 20th century, as cheque processing became automated, billions of cheques were issued annually; these volumes peaked in or around the early 1990s. Since then cheque usage has fallen, being partly replaced by electronic payment systems. In an increasing number of countries cheques have either become a marginal payment system or have been completely phased out.

https://en.wikipedia.org/wiki/Cheque

In Sweden, a Cash-Free Future Nears

source: Bank 3.0

Time of adoption

User Behaviour Changes

15

source: Bank 3.0

11.11.2015 – Beyond a Shopping Carnival

EPS Refill cancelled in 2007

Innovation of Electronic Retail Payment Systems

Year Innovation

1980 ETC

1982 JETCO

1985 EPS

1993 PPS

1996 RTGS

1997 Octopus

The Innovation of Octopus in last 20 years

Year Innovation

1994 Proposed by MTRC

1997 Used on MTR, buses and ferries

2000 Accepted by 7-11

2006 Citybank issued Built-in Octopus Visa Cards

2010 Selling of Customer Database

2014 Support AliPay with Mobile App

Types of Internet Finance

3 Party Payment

P2P Lending Big Data Finance

CrowdFunding

When the coach is also the referee

HKMA’s roles on FinTech

As a facilitator

• E-bill presentment and payment platform

• E-cheque

• NFC Mobile payment

Hong Kong to launch e-bill payment in 2013

Flow of eCheck

The Project Schedule of eCheck

Major Milestone Start EndPublic Consultation Jun 2012System Development Mar 2014 May 2015Internal Test Jun 2015 Sep 2015Member Bank Test Aug 2015 Sep 2015Simulation Test Sep 2015 Nov 2015Soft Launch 12 Dec 2015Public Launch 31 Mar 2016

9 Banks With iPhone Remote Check Deposit Apps - APPS MOBILE 06/13/2011

• According to a recent Federal study, the use of paper checks have declined 7.1% since 2006 thanks to a 45% growth in electronic payments; but that doesn’t mean we are done with good old-fashioned paper checks that account for 24.5 billion in annual payments

• Odds are no matter how digital you make your life you’ll still receive a few paper checks each year. With this in mind, we found 9 banks that will let you use your iPhone camera to remotely deposit your check, no matter where you are

The Root of the Matters

HKMA’s roles on FinTech

As a regulator

• Proposed a regulatory regime for Stored Value Facilities (SVFs) and Retail Payment Systems (RPSs)

Licensing regime for SVF • Propose to implement a licensing regime, covering device‐based (e.g. stored

value cards) and non‐device based (e.g. online stored value account) multipurpose SVF, to ensure the safety and soundness of issuers, and protection of users’ float

• Issuing SVF without a licence will be a criminal offence

• No licence is required for single‐purpose SVF

• The Hong Kong Monetary Authority (“HKMA”) may exempt the following SVF from applying for a licence - SVF for use within, or within close proximity to, the issuer’s premises; or- SVF for purchasing limited range of goods or services from a limited group of goods and services providers

• As licensed banks are already subject to regulation under BO, they are deemed to be licensed to issue SVF

Retail Payment System (RPS)

• means a system or arrangement for the transfer, clearing or settlement of payment obligations relating to retail activities, principally by individuals, that involve purchases or payments; and

• includes related instruments and procedures

Designation regime for RPS • Operate and provide retail payment services in Hong Kong; or

process Hong Kong dollar or other prescribed currencies (e.g. RMB, USD)

• A RPS may be designated if any disruptions to the RPS have implications to the monetary or financial stability of Hong Kong; public confidence in payment systems or the financial system of Hong Kong; or day-to-day commercial activities in Hong Kong

• Potential Coverage include: Credit card schemes, Debit card schemes, Merchant acquirers, Payment gateways

Status of Legislation • The Clearing and Settlement Systems (Amendment)

Bill 2015 gazetted on 23 January 2015

• The Bill was introduced into the Legislative Council for first reading on February 4, 2015

• Bills Committee on Clearing and Settlement Systems (Amendment) Bill 2015 – First meeting on Monday, 2 March 2015

• Completion of legislation: end of Nov 2015

WeChat Payment

O2O

Mobile CRM

38

Membership Card Coupons

Up Selling

39

Bookmark/ Purchasing Backend Records Pay/despatch

Smartone

JETCO announces partnership with 12 banks to offer JETCO Pay P2P

Hong Kong, 20 January 2016 Joint Electronic Teller Services Limited (“JETCO”) today announced a partnership with 12 banks to offer the JETCO Pay P2P service, which allows customers of the participating banks to transfer funds to practically anybody in Hong Kong with a bank account via an intelligent smartphone app. Customers will be able to transfer funds anytime and anywhere by using just the recipient’s mobile number.

2012

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