Completes ring-fenced payment test to provide input on use case
Hong Kong, October 20, 2023 -- (Left to right) Felix Tsui, Chief Strategy Officer, Digital Ventures, HKT; Anthony Lam, Vice President, The Club, Digital Ventures, HKT; Terri Yang, Vice President, Loyalty and Strategic Business Development, Digital Ventures, HKT; Grace Wong, Director (Administration and Planning), Hong Kong Baptist Hospital; Monita Leung, Chief Executive Officer, Digital Ventures, HKT; Eddy Yip, Product & Marketing Director, Hong Kong and Taiwan & Territory Manager, Hong Kong, Trip.com; Titania Woo, Executive Director, Hong Kong Management Association; Heidi Chan, Alternate Chief Executive, HKT Payment Limited
– Under HKT, HKT Payment, participating recently as part of a cross-industry consortium in the e-HKD Pilot Programme of the Hong Kong Monetary Authority (HKMA), has invited innovative enterprises from different fields, including Hong Kong Baptist Hospital, Trip.com, Hong Kong Management Association, The Club and Club Travel 1 , to take part in the "tokenised property-backed secured lending with ring-fenced usage" use case to test the ring-fenced payment feature of the hypothetical e-HKD loan and provide input to the HKMA.
In the "tokenised property-backed secured lending with ring-fenced usage" use case, the user goes through a process involving different parties of the cross-industry consortium. The process includes tokenising a property belonging to the user and using the resulting token[s] to apply for a ring-fenced secured loan. Leveraging the programmability feature of the hypothetical e-HKD, the loan is then disbursed through HKT's hypothetical e-HKD wallet as payment to merchants in the designated fields of healthcare, travel, education and e-commerce.
In brief
HKT says it has completed a ring-fenced payment test as part of the Hong Kong Monetary Authority’s e-HKD Pilot Programme. Through HKT Payment, it worked with a cross-industry group that included Hong Kong Baptist Hospital, Trip.com, Hong Kong Management Association, The Club and Club Travel. The use case explored how a hypothetical e-HKD loan secured by a tokenised property could be restricted to payments to merchants in healthcare, travel, education and e-commerce. HKT says the test was intended to provide input to the HKMA. The company says ring-fencing could support credit assessment and more personalised offers. HKT also described its merchant payment services, including Smart POS and FPS solutions. The company said it could support merchants if the HKMA confirms e-HKD implementation in the future.
Key takeaways
- HKT participated in the HKMA’s e-HKD Pilot Programme through a cross-industry consortium.
- The test examined hypothetical e-HKD loan payments restricted to specified merchant sectors.
- The use case involved a property token used to apply for a secured loan.
- HKT says the pilot was intended to provide input to the HKMA.
Ring-fencing the hypothetical e-HKD loan in the use case may help improve credit assessment and provide the user with more personalised offers, benefitting consumers and merchants alike.
Monita Leung, CEO, Digital Ventures, HKT, said, "Consistently at the forefront of technology, HKT, through HKT Payment and HKT Merchant Services, has advocated the development of fintech and the digital economy by supporting the government's Consumption Voucher Scheme, the HKMA's Faster Payment System (FPS) and the recent e-HKD Pilot Programme. We strive to collaborate with members of different industries to embrace and apply fintech and explore more payment possibilities. In the event that the HKMA confirms the implementation of the e-HKD in future, HKT will be in a position to offer timely support for merchants and broaden the realm of e-HKD payment."
HKT Merchant Services is committed to providing merchants and small- and mediumsized enterprises with innovative one-stop payment services, including the Smart POS device which supports multiple mainstream payment acceptance methods and comprehensive FPS payment solutions.
About HKT
HKT is a technology, media, and telecommunication leader with more than 150 years of history in Hong Kong. As the city’s true 5G provider, HKT connects businesses and people locally and globally. Our end-to-end enterprise solutions make us a marketleading digital transformation partner of choice for businesses, whereas our comprehensive connectivity and smart living offerings enrich people’s lives and cater for their diverse needs for work, entertainment, education, well-being, and even a sustainable low-carbon lifestyle. Together with our digital ventures which support digital economy development and help connect Hong Kong to the world as an international financial centre, HKT endeavours to contribute to smart city development and help our community tech forward.
For more information, please visit www.hkt.com.
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At a glance
- Company
- HKT
- Announcement
- Partnership
- Location
- Hong Kong
People
- Monita LeungCEO, Digital Ventures, HKT
