What is a stored value facility in Hong Kong?

Stored Value Facility Hong Kong Payment Definition

A stored value facility (SVF) stores monetary value electronically to pay third parties. In Hong Kong, "stored value facility hong kong" refers to facilities regulated by the Hong Kong Monetary Authority under the Payment Systems and Stored Value Facilities Ordinance (Cap. 585). E-wallets and prepaid cards let users load funds and make payments without a bank account.

The Ordinance defines an SVF as a facility storing monetary value in an electronic record, paid in advance by the user to discharge payment obligations. The Hong Kong Monetary Authority is the licensing and supervisory body for all SVF operators.

SVF Licence Hong Kong

You need an SVF licence hong kong to operate a stored value facility, unless an exemption applies. The Hong Kong Monetary Authority issues these licences under the Payment Systems and Stored Value Facilities Ordinance (Cap. 585). Licence holders must meet capital requirements, maintain adequate systems controls, and safeguard user funds through segregation or other approved arrangements.

Hong Kong E-Wallet Licence

A hong kong e-wallet licence is the same as an SVF licence. Any e-wallet storing monetary value for third-party payments is a stored value facility. The Hong Kong Monetary Authority regulates e-wallet operators under the same Ordinance, requiring a valid licence and compliance with ongoing supervisory requirements.

Stored Value Facility Regulation

Stored value facility regulation in Hong Kong is governed by the Payment Systems and Stored Value Facilities Ordinance (Cap. 585). The Hong Kong Monetary Authority sets rules on custody of user funds, operational resilience, anti-money laundering controls, and reporting obligations. Operators must keep user funds in a segregated trust account or obtain an approved guarantee.

Payment Institution SVF Hong Kong

A payment institution svf hong kong is an entity licensed by the Hong Kong Monetary Authority to operate a stored value facility. These institutions may also provide other payment services, such as Faster Payment System (FPS) connectivity or multi-currency account functionality. The licensing regime under Cap. 585 applies to all payment institutions that store monetary value for users.