Hongkongers have various payment methods at their disposal, from Apple Pay, Google Pay, and other e-wallet providers to cash, credit cards, and direct debit payments. As a startup, you must appeal to as many consumers as you can, and that means fully exploring all available payment methods.
So, what are the best payment methods, what do customers prefer, and how can you cater to them?
Overview of Payment Methods in Hong Kong
Hong Kong is a largely cashless city, with most residents preferring credit cards and e wallets over cash. Cash still rules in some industries, though, including smaller restaurants, family-run shops, taxis, and market stalls. Most customers are happy to opt for digital payment options, but some still expect cash payments to be on the table.
This could change in the future. Digital payment methods are becoming increasingly popular and the city is gradually shifting toward a completely cashless society. Either way, if you run a consumer-facing business, as opposed to primarily dealing with direct, business-to-business Global Payments, you need to understand the ins and outs of payment methods such as:
- Credit Cards
- Debit Cards
- E Wallets
- Octopus Card
- The Faster Payment System
- Cheques
- Bank Transfers
Cash and Card Payments
It's rare to find a merchant that doesn't accept cash in Hong Kong. They do exist, and they are becoming more common, but while cash is not always the preferred method, it is usually accepted.
Travel advisory sites still recommend that travellers pick up Hong Kong Dollars on their way into the country, and many customers carry cash on them. As noted above, it's the only way to pay in some locations, particularly when dealing with independent merchants like market stall vendors.
Credit cards are accepted in many major convenience stores, restaurants, cafes, and department stores. These locations also take debit cards.
The popularity of paper payments means that new businesses shouldn't dismiss them entirely. Not yet. It might be a hassle to continue accepting cash after fully embracing digital point-of-sale (POS) solutions, but you don't want to alienate those for whom cash is still king.
If nothing else, accepting the odd note is a great way to avoid processing fees.
Mobile Wallets
Contactless payments are very common. Apple Pay, Google Pay, and other mobile wallets are all widely used and accepted in the city. They provide a convenient and secure solution for both the consumer and the business, and in most cases (particularly with Apple/Google Pay), no additional charge is levied against the business.
Users simply link their debit or credit card(s) to their device, creating a mobile wallet to manage all of their cards. They can then access their cards with a simple click, enter a password or pass a biometric check (fingerprint scan, face ID), and pay by waving their device over the scanner. Google and Apple wallets can also be used to store tickets and other essential info, giving travellers an advantage by putting everything in one place.
Over 1 million online and offline merchants also accept WeChat Pay in Hong Kong, making it one of the most commonly used methods in the city. Locals use it to check and pay utility bills, collect promotions, chat, shop online, and make in-person payments using its QR Code payment option.
Alipay offers similar functionality. It is one of the most popular payment methods among domestic travellers who use it to buy bus and ferry tickets at MTR stations. It also uses scannable QR codes to process secure and fast payments, and both Alipay and WeChat Pay provide great exchange rates on cross-border payments.
Octopus Card
The Octopus Card was launched in 1997. It was developed to facilitate payments on the public transportation network. Since then, it has spread across the city's financial network and now processes over 14 million transactions a day on everything from bus tickets to retail stores.
Available digitally and physically, users can top up their cards at convenience stores, MTR service counters, and various other locations. With an estimated 20 million+ cards in circulation, all businesses should accept Octopus Card payments.
Faster Payment System (FPS)
Launched by the Hong Kong Monetary Authority (HKMA) in 2018, the Faster Payment System (FPS) is a 24-7 real-time payment system that connects dozens of banks and financial institutions across the city.
Customers can make a bill payment, pay for a service, top up an e wallet, or send money to friends and family using only the recipient's phone number or email address. The recipient doesn't need to set up a new account or wait several days to receive their money, as the funds are usually available instantly.
It's one of the best payment methods for both business and personal use and is widely accepted throughout the city.
Other Payment Methods (Not Widely Accepted)
Some customers still prefer to pay by cheque, but they are in the minority. After a massive decline in their use, the Hong Kong Association of Banks (HKAB) created a road map to phase them out over the next few years. The announcement came in 2024, and they haven't been completely phased out yet, but with the popularity of faster and easier digital payment methods, they have had their day.
Bank transfers are more common, but they are typically reserved for larger payments and international transfers. It may be a suitable option if you're sending large sums from one Business Account to another, but for in-person and online shopping, it's not practical. The majority of customers also prefer simpler alternatives, such as the payment methods outlined above.
Other payment methods include financial services like PayPal, which uses a linked bank account, credit/debit card, or e-wallet to process online purchases.
Choosing the Right Payment Method to Accept
Consumers choose the payment method that suits their needs, whether that means using PayPal for its accessibility in the online marketplace, WeChat Pay and Octopus Card due to their widespread availability in local shops and restaurants, or FPS for a bill payment, service payment, or splitting bills among friends.
Businesses need to be more studious in their choices. It's not just about picking payment methods that have the smallest processing charge or fastest clearance rates, but rather it's about choosing the options that suit your customers and business. That usually means accepting a broad range of payment options while also considering your own business payment needs with a Corporate Card and low-rate business account through a company like Aspire.
Accepting and Processing Debit Card Payments in Hong Kong
In the final quarter of 2024, there were over 67 million debit card transactions in Hong Kong. They are used for online shopping, bill payment, top up payments, and retail payments. They might be more traditional and less feature-rich than e wallets, but they're still very common.
Every consumer has a bank account, and that means most of them also have a debit card. It might not always be the first-choice payment method, but it's always an option. If a consumer can't pay via an app, doesn't use e wallets, and isn't holding any cash, they will always have a debit card on hand.
This accessibility and availability is why every business should be primed to accept debit cards. Of course, if all else fails and the consumer encounters a cash-only business, they can also use their card to withdraw money from a nearby ATM.
The downside for consumers is that debit cards often charge high exchange rates, ATM fees, and account fees. For the businesses that accept them, there is usually a service charge to consider, as well as the initial activation price.
Either way, if you run an online or offline business in Hong Kong, you should be prepared to accept debit cards.
Conclusion: Choosing the Right Payment Methods in Hong Kong
Businesses in Hong Kong have a wealth of convenient payment options to choose from, as customers are more than happy to pay by cash, mobile app, credit cards, or debit cards, and they have plenty of options at their disposal. To cater to the needs of as many consumers as possible, both online and offline businesses should cover various payment options.
So, accept whatever methods you can (within reason), targeting the main options first (Visa and Mastercard debit and credit cards, WeChat Pay, Apple Pay, Google Pay), and then add additional methods on request.
If you need an easy way to manage all of those expenses and keep your business's finances in shape, check out Aspire's Expense Management solution.
FAQs
What is the Most Popular Payment Method in Hong Kong?
Debit and credit cards are the most popular way to pay in the city.
What Payment App Do People Use in Hong Kong?
WeChat Pay is one of the best solutions and offers its members an array of benefits. It's also easy for businesses in the city to accept this method, as payments are processed securely using QR Codes.
Does Apple Pay Work in Hong Kong?
Yes, and it is commonly used and accepted.
Is it Better to Accept Cash or Cards in Hong Kong?
Ideally, you should accept both, along with e wallets like the Octopus Card.
What are the Most Popular Credit Cards in Hong Kong?
Visa and Mastercard are the biggest, followed by EPS, which stands for Electronic Payment Services and processes hundreds of thousands of daily transactions.
Frequently Asked Questions
