FPS for Business: How to Receive Payments to Your Corporate FPS Account

What is the Faster Payment System (FPS)?

Before delving into how the FPS system is applied in a business context, we must first understand its basic structure.

FPS System Overview

Official Background: The Faster Payment System (FPS) is a payment infrastructure launched by the Hong Kong Monetary Authority (HKMA) in 2018, which fully connects banks across Hong Kong.

Extensive Connectivity: Its core function is to dismantle the barriers between virtually all local banks and Stored Value Facilities (SVFs) in Hong Kong. This means that funds can be transferred instantly across platforms, regardless of which bank holds your business account or whether your customers use SVFs like PayMe or AlipayHK.

Core Advantages of FPS for Businesses

For corporate operations, FPS brings a revolutionary change that goes far beyond just "speed":

• 24/7 Real-Time Payments: FPS offers non-stop (24x7x365) instant payment services, fully supporting both Hong Kong Dollar (HKD) and Chinese Yuan (RMB) transactions. This means businesses no longer need to wait for banking hours or T+1 settlement cycles; collection and payment are instant, even on weekends or public holidays.
  
• Simplified Process: Traditional transfers require providing full bank branch codes and account numbers, a process that is cumbersome and prone to error. FPS introduces the concept of a "Proxy ID" (Identifier), allowing customers to easily pay using only your company's mobile number, email address, or FPS Identifier (FPS ID).
  
• Enhanced Cash Flow: "Instantaneity" is FPS's biggest advantage. Payments from suppliers arrive immediately, and customer payments are instantly credited, greatly accelerating the corporate cash flow cycle and reducing trapped capital.
  
• Reduced Costs: Historically, processing large volumes of cash or checks incurred significant labor and administrative costs (e.g., depositing, counting, reconciliation). FPS digitizes the process, substantially lowering operational costs and risks associated with human error.
  

Corporate FPS vs. Personal FPS: Key Differences

Although the underlying technology is the same, businesses face entirely different rules and costs when registering and using FPS compared to individual users.

Eligibility and Account Nature

• Personal FPS: Any HK resident can link their personal bank account or SVF (like PayMe) to their personal phone number or email for P2P (person-to-person) transfers.
  
• Corporate FPS: A valid Business Bank Account is mandatory for linking to Corporate FPS. You cannot use a personal account to register as the FPS recipient account for your company. This is the most fundamental distinction between the two.
  

Fee Structure (The Biggest Difference)

• Personal FPS: To encourage widespread use, P2P transfers are currently free on almost all HK banks and SVFs.
  
• Corporate FPS: Although the FPS system itself (operated by the HKMA) does not charge fees, banks generally levy fees for FPS transactions conducted through business accounts. Banks view this as a Merchant Service, and fees may apply to both incoming (P2B, B2B) and outgoing transfers (B2B, B2P, such as payroll).
  

Transfer and Collection Limits

• Personal FPS: To protect individual users, banks typically set lower daily transfer limits (e.g., HKD 10,000 for non-registered accounts, depending on the bank).
  
• Corporate FPS: Business account transaction limits are usually significantly higher than personal accounts, satisfying the corporate need for large transactions, supplier payments, or payroll.
  

Corporate FPS Registration and Activation Process

Activating FPS for your business is straightforward but must be done through your commercial banking platform.

Step 1: Prepare Your Business Bank Account Your business must have an existing Business Account at an HK bank that supports FPS (e.g., HSBC, Hang Seng, BOC, Standard Chartered, BEA, etc.).

Step 2: Bind the Proxy ID (Identifier) Log in to your corporate online banking platform (e.g., HSBC BIB, Hang Seng Business e-Banking). In the "Faster Payment System" or "FPS Registration" menu, choose to bind an identifier. The most common identifiers for businesses include:

• FPS ID: A unique numerical code generated by the system; it contains no private information and is ideal for B2B transactions or printing on invoices.
  
• Email Address: Must be the official company email address (e.g., [email protected]).
  
• Mobile Number: Must be the contact number registered with the company.
  

Step 3: Set Default Receiving Bank If your company holds business accounts with multiple banks (e.g., Bank A and Bank B) and has linked its email address to both, you can designate one (e.g., Bank A) as the "Default Receiving Bank." This ensures that when a client pays using only your email address, the funds are automatically deposited into Bank A, avoiding confusion.

Corporate FPS: How to Collect Payment

Once registered, businesses can use the following three common methods to collect payments via FPS:

Method 1: Display the FPS QR Code

This is the most common method for physical retail stores and online shops, focusing on "Scan-to-Pay."

• Physical Store Application: Merchants can generate an exclusive "FPS QR Code" via their commercial bank App or an SVF merchant App.
  

• Static QR Code: Printed and displayed at the counter; the customer scans it and manually enters the amount.
  
• Dynamic QR Code: Generated in real-time by a POS machine or App, already containing the specific transaction amount; the customer only needs to confirm payment after scanning.
  

• Online Shop Application: A QR code containing the order amount can be automatically generated on the checkout page. Customers scan the code on their computer screen using any banking App on their mobile phone, completing the payment seamlessly.
  

Method 2: Provide the FPS Identifier (Proxy ID)

This is the most common method for B2B (business-to-business) transactions or service industries (e.g., consulting, design).

• B2B Transactions: The company can clearly list its FPS Identifier (FPS ID) or official company email address on the invoice issued to the client.
  
• Remote Collection: The client receives the invoice, logs into their online banking platform, selects "FPS" in the "Transfer" function, enters the merchant's identifier and amount, and completes the payment without mailing a check.
  

Method 3: API Connection (For Large Online Stores)

For online shops or Apps with high transaction volumes requiring deep automation, API integration is the ideal choice.

• By applying for an API directly from the bank or through a Payment Gateway provider, the FPS payment function is integrated into the enterprise's checkout system.
  
• Advantage: Allows for fully automated reconciliation. Upon successful payment, the FPS system immediately sends a "payment confirmation" notification via the API, allowing the online store system to automatically update the order status to "Paid" and arrange shipment, eliminating manual checks.
  

Corporate FPS: How to Pay for Expenses

FPS is not only efficient for collection but also for outgoing payments (expenses).

Paying Suppliers or Employee Payroll

The two largest expenditures in daily corporate operations—paying suppliers and processing payroll—can both be streamlined through FPS.

• The corporate finance department can use FPS to pay HKD or RMB amounts via the corporate online banking platform.
  
• Simply entering the recipient's (supplier's or employee's) FPS Identifier (phone, email, or FPS ID) allows for batch or single transfers.
  

Payment Verification and Instant Crediting

• Security Verification: Before confirming the payment, the FPS system displays a partially masked payee name (e.g., CHAN T** M*** or ABC TRAD*** CO LTD). The payer must carefully verify this name to ensure the funds are paid to the correct party.
  
• Instant Crediting: Once confirmed, the funds are transferred instantly to the recipient's bank account within seconds, and the recipient also receives immediate notification.
  

Bank Service Fees and Comparison

This is the most pressing question for all businesses: What exactly does Corporate FPS cost?

Bank Service Fees: The Merchant's Main Cost

The FPS system itself (operated by the HKMA) is free, but banks charge service fees to merchants (i.e., holders of business accounts).

Bank fee structures are diverse and may include:

• Per Transaction Fee: The most common model. The bank charges a fixed fee for every successful transaction, whether incoming or outgoing (e.g., HKD 1.0 - 2.0).
  
• Percentage of Transaction Amount: Similar to credit card fees, charging a percentage (e.g., 0.5% - 1.5%) of the transaction amount, more common for SVF merchant collection.
  
• Monthly Package: Some banks offer monthly packages for businesses with high transaction frequency, including a set number of free transactions, with charges applied per transaction thereafter.
  

Example FPS Fees for Major Bank Business Accounts (Reference Only)

Important Reminder: The table below is intended to illustrate possible fee models. Before selecting or using FPS services, businesses must proactively inquire with their respective banks (e.g., HSBC, Hang Seng, BOC, etc.) for the latest official "Bank Tariff for Business Accounts."

[Table:1]

Banks and SVFs Supporting Merchant FPS

Currently, almost all financial institutions in Hong Kong support FPS:

• Major Traditional Banks: HSBC, Hang Seng Bank, Bank of China (Hong Kong) (BOC), Standard Chartered, Bank of East Asia (BEA), DBS Bank, etc.
  
• Virtual Banks: ZA Bank, Airstar Bank, Livi Bank, Mox Bank, etc. Virtual banks often use more competitive (or free) FPS fees to attract SME customers.
  
• Stored Value Facilities (SVF): AlipayHK, WeChat Pay HK, PayMe for Business, Octopus O! ePay, etc., which primarily offer FPS-based collection solutions to retail merchants.
  

FPS Security and Tips for Corporate Use

The FPS system is highly secure, but businesses must remain vigilant when using it.

FPS Security Safeguards

• Strict Regulation: The entire FPS system is regulated by the HKMA and employs bank-grade encryption and security measures.
  
• Two-Factor Authentication (2FA): All outgoing FPS payments require two-factor authentication provided by the bank (e.g., password + SMS verification code, or security token).
  

Security Advice for Corporate FPS Use

• Carefully Verify Payee: In the final step of payment, always meticulously check the partially masked payee name displayed by the system. If the name does not match, do not proceed with the transaction. FPS transfers are instant, and once an error occurs, the funds are almost irreversible.
  
• Set Reasonable Limits: Log in to your corporate online banking and set a reasonable daily transfer limit based on actual business needs. This minimizes potential loss in case the account is compromised.
  
• Guard Against Phishing: Corporate finance staff should be vigilant against any fraudulent emails or messages claiming to be from the bank or FPS, asking you to "update data" or warning of "account freezing." Never click on suspicious links to make payments or enter passwords.
  

Alternative to Traditional Banks: How Aspire Business Account Uses FPS

In recent years, many Fintech platforms have emerged alongside traditional banks, offering SMEs more flexible commercial account options. Aspire is one such platform.

[IMAGE_PLACEHOLDER_1]Aspire platform supports free FPS and CHATS transfers, ensuring local transfers and payroll are timely. Additionally, Aspire provides global remittance solutions, allowing businesses to make international transfers at lower exchange rates, saving on cross-border payment costs from the source.

How Does the Aspire Business Account Utilize FPS?

• Integrated FPS System: The commercial account service provided by Aspire in Hong Kong is fully integrated with Hong Kong's Faster Payment System (FPS).
  
• Receiving Funds: Upon opening an Aspire account, businesses receive dedicated local account details and an FPS Identifier. Clients can instantly deposit HKD into your Aspire account via FPS, just as they would with any traditional bank transfer.
  
• Making Payments: Businesses can log in to the Aspire platform to make FPS transfers to local suppliers or employees.
  
• Core Advantages: Aspire focuses on a faster account opening process (potentially same-day), lower transaction costs (free FPS), and an easy-to-use, fully digital interface, making it ideal for startups and digital SMEs.