Hong Kong regulator issues two more Stored Value Facility licences
Yintran Group Holdings Limited and Geoswift Cards Services Limited are the latest companies to secure SVF licences in Hong Kong.
The Hong Kong Monetary Authority (HKMA) today announces the granting of Stored Value Facility (SVF) licences to the following SVF issuers under the Payment Systems and Stored Value Facilities Ordinance:
- Yintran Group Holdings Limited;
- Geoswift Cards Services Limited.
Deputy Chief Executive of the HKMA, Mr Howard Lee, said, “The SVF industry has been growing since the implementation of the SVF licensing regime in 2016. We hope the existing as well as the new licensees will continue to launch new services to bring more convenience and choices to consumers and merchants, and to promote diversity in the payment ecosystem of Hong Kong.”
At present, there are 15 non-bank SVF licensees including the above two, and three licensed banks are also operating SVFs.
Under Hong Kong laws, a facility is an SVF if:
(a) it may be used for storing the value of an amount of money that (i) is paid into the facility from time to time; and (ii) may be stored on the facility under the rules of the facility; and
(b) it may be used for either or both of the following purposes:
- (i) as a means of making payments for goods or services under an undertaking (whether express or implied) given by the issuer.
That means an undertaking that, if the facility is used as a means of making payments for goods or services, the issuer, or a person procured by the issuer to accept such payments, will accept the payments up to the amount of the stored value that is available for use under the rules of the facility;
- (ii) as a means of making payments to another person (other than payments mentioned in sub-paragraph (i) above) under an undertaking (whether express or implied) given by the issuer.
That means an undertaking that, if the facility is used as a means of making payments to another person (recipient) (other than payments mentioned in sub-paragraph (i) above), the issuer, or a person procured by the issuer to make such payments, will make the payments to the recipient up to the amount of the stored value that is available for use under the rules of the facility.
