Hong Kong PPS Payment Guide: Setup, Merchant Codes & Rules

If you've ever seen "PPS" listed as a payment option on an IRD tax bill, a water bill, or a Business Registration renewal notice, you've probably wondered what it actually is.

PPS (Payment by Phone Service) is 1 of Hong Kong's oldest electronic bill payment systems. It lets individuals and businesses settle bills by phone, online, or through a mobile app, 24 hours a day.

This guide explains what PPS is, how it works, and when your business should — or shouldn't — rely on it. We'll also cover the exact steps for paying common business bills, the mistakes companies make with PPS, and where it fits into a modern finance stack.

What Does PPS Stand For?

PPS stands for Payment by Phone Service, a bill payment system launched in 1993. It's jointly provided by EPS Company (Hong Kong) Limited and Hong Kong Telecommunications (HKT).

It currently records millions of transactions monthly, covering merchants ranging from public utilities and government departments to banks, telecoms companies, schools, and charities.

In practice, PPS works like a centralised "pay any bill" utility. Instead of paying each merchant — the IRD, your water supplier, your insurer — through a separate channel, you register once with PPS. From there, you can pay any participating merchant using a shared account, from a phone, computer, or app.

The name is a bit dated now — most people don't pay bills over a tone phone anymore. But the "phone" branding has stuck around since 1993, even as the service expanded to cover internet and mobile app payments. You'll sometimes see it written in Chinese as 繳費靈, which loosely translates to "convenient bill payment."

How PPS Fits Into Hong Kong's Payment Landscape Now

Hong Kong's payment landscape has changed enormously since 1993. The Faster Payment System (FPS) launched in 2018, e-wallets like AlipayHK and WeChat Pay HK became mainstream, and most banks now offer instant bill payment through their own apps.

PPS hasn't disappeared, though. It's simply become 1 option among several — retained mainly because government departments, insurers, and older institutions built their billing systems around it decades ago and haven't fully migrated away.

For a business, this history matters practically: PPS is reliable and government-endorsed, but it wasn't designed for the speed or integration that modern finance teams expect. Knowing that helps you decide when to use it and when to reach for something faster.

How Does PPS Work in Hong Kong?

PPS links your bank account to a personal PPS account, which you use to authorise payments to registered merchants instead of paying each biller separately. Each merchant that accepts PPS is assigned a merchant code, and each bill you want to pay is registered against your account using that code and a bill-specific account number.

Setting up PPS for your business involves 3 stages: opening a PPS account, registering the specific bill, and then making the payment. Each stage only needs to happen once per bill type — repeat payments, like an annual tax bill, are usually faster after that first setup.

Step 1: Open a PPS Account

You'll need an ATM card or a credit card with an ATM function from 1 of the participating banks to register. There are hundreds of PPS registration terminals across Hong Kong, including most Circle K convenience stores, HKT Shops, and some major bank branches.

At the terminal, you can set up your account, change your password, and update your registered mobile number.

Registration at a terminal typically takes a few minutes. You'll insert your card, follow the on-screen prompts, and set a PPS password separate from your online banking password. It's worth storing this password securely, since it's easy to forget if you only use PPS once or twice a year.

Some banks also allow PPS registration directly through their own online banking portals or branch counters. It's worth checking with your business bank first before hunting for a physical terminal — this can save a trip, particularly for remote teams.

Step 2: Register Your Bill

Once your PPS account exists, you register each specific bill — called a "Shroff Account Number" or bill account — against it, using the relevant merchant code. Merchant code "10" covers the IRD, handling tax, Business Registration Fee, Stamp Duty, and Hotel Accommodation Tax payments, while merchant code "08" covers the Water Supplies Department.

Registration for an IRD bill is typically done by dialling 18011, or through the PPS website. You'll need the Shroff Account Number printed on your specific bill.

This is 1 of the more counterintuitive parts of PPS for new users: registering once doesn't mean every future bill from that merchant is automatically covered. Each new bill number typically needs its own registration step, which is part of why PPS can feel slower than a straightforward bank transfer.

Step 3: Make the Payment

Once a bill is registered, you can pay it by phone, on the PPS website (ppshk.com), or via the "PPS on Mobile" app, available 24 hours a day. For IRD payments specifically, you dial 18031 to pay by phone, or use the internet or mobile app instead.

The payment itself is usually quick — a few minutes on the phone or app, once the bill is registered. Funds are drawn from the linked bank account, and each successful payment through PPS generates a Payment Reference Number as proof of transaction.

Keep that reference number. It's your evidence that the payment was made and received, which matters if a bill is later disputed or your accountant needs it during reconciliation.

A quick note on accuracy: PPS registration steps, hotline numbers, and merchant codes can change over time. Always confirm current details on ppshk.com or the relevant government department's site before making a payment.

What Can Your Business Pay With PPS?

PPS is most relevant to Hong Kong businesses for government and statutory payments, though it's also used for utilities, insurance, and education fees.

Government and Statutory Payments

The table below covers the payments most business owners actually need to make.

[Table:1]

Merchant codes should be verified against the current bill or ppshk.com merchant list before use, as they can be reassigned over time.

For most SMEs, the IRD payments matter most, since almost every registered business has to pay the annual Business Registration Fee, and profitable companies pay Profits Tax. Stamp Duty comes up less often, mainly around property leases, share transfers, or certain contracts.

Insurance and Other Recurring Bills

Insurance premiums are a common secondary use case. Many commercial insurers in Hong Kong, from group medical cover providers to business liability insurers, still list PPS as a payment option alongside autopay and cheque.

If your company carries several policies, it's worth registering each one separately. Insurers typically use their own distinct merchant codes, rather than sharing one across the industry.

Daily Transaction Limits to Know

For IRD payments specifically, there's a practical limit worth knowing about in advance: the daily transaction ceiling for PPS payment of each IRD bill is 3 transactions, according to the Inland Revenue Department's own guidance.

If you're clearing a large outstanding tax balance across multiple partial payments, plan around this cap rather than assuming unlimited daily transactions.

PPS vs FPS vs e-Cheque: Which Should Your Business Use?

Hong Kong now offers several ways to pay government and business bills electronically. PPS is reliable and widely accepted, but it's no longer the fastest or most convenient option for every use case.

Comparing the 3 Options

[Table:2]

FPS is a real-time gross settlement payment system in Hong Kong that connects traditional banks and electronic payment and digital wallet operators. It's now accepted alongside PPS for most government bills — payment methods for tax bills, Business Registration Fee, and Stamp Duty include PPS, e-Cheque or e-Cashier Order, FPS, and internet banking.

The Key Difference: Registration

The biggest practical difference is registration. PPS requires you to register the specific bill before you can pay it, using a merchant code and bill account number. FPS, by contrast, generally lets you scan a QR code printed directly on the bill and pay immediately.

For a 1-off payment — say, a single Stamp Duty assessment on a lease you'll only sign once — FPS is usually faster and simpler. For a recurring payment you make every year, like Profits Tax, PPS can work just as well once it's set up.

e-Cheque and e-Cashier Order sit somewhere in between. They're useful for larger 1-off payments, or where a counterparty specifically expects a cheque-style instrument rather than a direct transfer.

If your business wants to understand FPS in more depth — including how to set up an FPS account to receive customer payments — see our guides on FPS for Business and what RTGS and FPS transfers actually mean.

How to Pay Business Registration Fee, Profits Tax, or Stamp Duty via PPS

Here's the general process for a first-time IRD payment through PPS. This assumes you already have a PPS account set up; if not, complete the registration process described earlier first.

Step-by-Step Payment Process

• Get your bill. Locate the Shroff Account Number (or bill account number) printed on your Profits Tax return, Business Registration renewal notice, or Stamp Duty assessment.
  
• Register the bill with PPS. Dial 18011, or register online at ppshk.com, using merchant code 10 for IRD payments. You'll be asked to enter the Shroff Account Number from step 1.
  
• Confirm registration. You'll receive confirmation that the bill is now linked to your PPS account.
  
• Make the payment. Dial 18031, use the PPS website, or open the "PPS on Mobile" app, and follow the prompts to pay from your registered bank account.
  
• Save your Payment Reference Number. This is your proof of payment if there's ever a dispute, a delay, or a query from your accountant.
  
• Wait for confirmation. For tax payments, e-receipts are issued through your eTAX account. For Business Registration Fee payments made electronically, a Business Registration Certificate is sent to your business address once the IRD has received the payment.
  

A Worked Example

Imagine a Hong Kong-incorporated e-commerce company renewing its Business Registration Certificate. The renewal notice arrives with a Shroff Account Number and a due date.

The finance manager registers the bill by phone using merchant code 10, waits for confirmation, then pays through the PPS app that same afternoon. A week later, the physical certificate arrives by post, and the finance manager files the Payment Reference Number alongside it for the company's records.

About the Business Registration Fee Amount

The exact fee and levy amount is reviewed and can change with each government budget, typically announced in February or March. Check the current IRD Business Registration Fee and Levy Table before paying, rather than relying on a figure from an older article — fee waivers and adjustments have happened in past budget cycles.

Common Mistakes Businesses Make With PPS

Even though PPS is a mature, well-established system, a surprising number of businesses run into avoidable friction with it. Knowing the common pitfalls in advance can save time, especially around tax deadlines.

• Forgetting to re-register a new bill. Many business owners assume last year's PPS registration covers this year's bill automatically. In most cases, each new bill has its own Shroff Account Number and needs to be registered again.
  
• Hitting the daily transaction ceiling unexpectedly. Trying to clear a large balance in several partial payments can bump against the 3-transaction daily limit on IRD bills without warning. Spreading large payments across several days avoids this.
  
• Losing the Payment Reference Number. Without it, proving a payment was made and received can turn into a frustrating back-and-forth with the relevant department. Logging the reference number the moment a payment completes avoids this entirely.
  
• Assuming PPS and FPS use the same account details. Because both systems can pay the same bill, it's easy to conflate the registration information. FPS payments typically use a QR code or FPS identifier, while PPS uses a merchant code and Shroff Account Number — they are not interchangeable.
  
• Not verifying merchant codes before paying. Merchant codes can be reassigned over time. Paying against an outdated code risks the payment going to the wrong account or being rejected.
  

Is PPS Safe for Business Payments?

Yes — PPS is a long-established, regulated payment channel jointly operated by EPS Company and HKT, and it's the payment method listed directly on official IRD, Companies Registry, and Water Supplies Department bills. It's not a third-party workaround; it's built into how Hong Kong government departments expect to be paid.

Safety Best Practices

A few practical safeguards are worth building into your business's process, particularly as phishing and impersonation scams targeting bill payments have become more sophisticated.

• Never share your PPS password or registered mobile number with anyone claiming to be from IRD, PPS, or your bank by phone or SMS. Legitimate providers will never ask for this directly.
  
• Register bills directly through ppshk.com or the official hotline, not through a link sent in an unsolicited message or email, even if it looks official.
  
• Keep your Payment Reference Numbers for every transaction as your audit trail, especially for tax payments your accountant will need to reconcile.
  
• Double-check merchant codes and account numbers against the physical or digital bill each time, rather than reusing saved details from memory.
  
• Set up alerts on the linked bank account where possible, so unexpected PPS transactions are flagged quickly.
  

These aren't PPS-specific weaknesses so much as general good practice for any bill payment channel. The system itself is sound; the risk, as with most payment fraud, tends to come from social engineering rather than a flaw in PPS's design.

Troubleshooting: What If Something Goes Wrong?

Even a well-established system like PPS occasionally produces confusing situations, particularly for a business paying an unfamiliar bill type for the first time.

Payment and Registration Issues

• Payment fails or won't go through. Double-check that the bill is fully registered before attempting payment — an unregistered bill won't process. Also confirm your linked bank account has sufficient funds and hasn't hit its own daily transfer limit, which is separate from the PPS transaction ceiling.
  
• You've hit the daily transaction limit. For IRD bills, the ceiling is 3 payments per day per bill. If you need a 4th payment against the same bill, you'll need to wait until the following day.
  
• You're not sure which merchant code to use. Check the physical or digital bill itself — the merchant code is usually printed near the payment instructions. The PPS pre-recorded hotline or ppshk.com merchant list can confirm the current code if it's unclear.
  

Account and Dispute Issues

• You've lost your PPS password. Visit any PPS registration terminal with your original ATM or credit card to reset it, or check ppshk.com for current password recovery guidance.
  
• A payment didn't reflect on your bill. Contact the relevant merchant — the IRD, Water Supplies Department, or your insurer — directly with your Payment Reference Number. This reference is the key piece of evidence that resolves most payment disputes quickly.
  

What Are the Limits of Using PPS for a Growing Business?

PPS was designed in an era before instant interbank transfers, and it shows in a few ways that matter more as a business scales. None of these are dealbreakers, but they're worth factoring into how your finance team handles bill payments.

• You must register each bill individually before you can pay it. There's no way to pay an unregistered bill on the spot, unlike scanning an FPS QR code — this creates friction if a bill arrives close to its due date.
  
• The 3-payment daily ceiling per IRD bill can be limiting. For a business settling a genuinely large tax balance, this cap forces payments to be spread across several days.
  
• It doesn't integrate with accounting software. Unlike a bank transfer or corporate card transaction, PPS payments generally need to be manually logged for bookkeeping and expense records.
  
• There's no team-wide visibility. A single PPS account, tied to 1 person's password and registered bank account, doesn't naturally extend to a finance team where several people might need to make payments. This is a meaningful gap for any business beyond a 1-person operation.
  
• It's built around individual bills, not cash flow planning. PPS tells you what's been paid, but not much else — no forecasting, no automatic categorisation, no view of upcoming obligations across departments.
  

For payments where speed, integration, or team-wide visibility matter more than habit, most Hong Kong businesses are shifting recurring bill payments toward FPS transfers or a dedicated business account with built-in payment tracking.

Where PPS Fits Into Your Wider Finance Operations

For Small or Early-Stage Businesses

For a very small business paying 1 or 2 government bills a year, PPS is perfectly adequate on its own. The friction it introduces — registering bills, remembering passwords, logging reference numbers by hand — is manageable at low volume.

As the Business Grows

The picture changes as a business grows. A company managing multiple entities, several recurring tax obligations, insurance policies, and vendor payments across different currencies starts to feel the gaps in a system built for individual, manually-tracked transactions.

At that point, the administrative cost of PPS — the re-registration, the manual reconciliation, the lack of team access — starts to outweigh its convenience.

Pairing PPS With a Modern Business Account

This is where a modern business account, like the one offered by Aspire, tends to take over the bulk of day-to-day payment activity. Bank transfers and FPS payments made through a business account are automatically logged, categorised, and visible to the whole finance team in real time.

For recurring statutory obligations specifically — Profits Tax, the Business Registration Fee, Stamp Duty — many businesses still keep PPS in the mix. It's the government's own long-standing channel, and it works.

Pairing that with a corporate card and a business account for everything else tends to give founders and finance leads the best of both. You get a trusted, government-endorsed channel for statutory bills, and modern tools with real visibility for everything else.

Why Hong Kong Businesses Choose Aspire

Paying government bills through PPS is 1 piece of running a compliant business in Hong Kong — but it's rarely the only payment you're making. Here's how Aspire supports the rest of your financial operations.

💱 FX spreads from 0.18%, up to 3x cheaper than traditional banks. This applies across 130+ countries and 40+ currencies through Aspire's multi-currency account. It's useful for anything from paying overseas suppliers to settling international payments without losing margin to markup.

💰 1.2% unlimited cashback applies on every corporate card transaction, with no monthly cap. It kicks in automatically on eligible spend, with no minimum threshold to hit first. Over time, it quietly turns routine business spend into working capital.

🌐 Local transfer network, not multi-hop SWIFT chains, is how Aspire routes most payments. This means faster settlement and fewer intermediary fees eating into your payment before it reaches the recipient. It also reduces the chance of funds being held up for review at a correspondent bank along the way.

💸 Fixed USD 8 inbound SWIFT fee, tracked end-to-end with SWIFT GPI, applies when SWIFT is the right rail for your payment. There are no surprise deductions from correspondent banks along the way, so the amount you're quoted is the amount that arrives. You can also download payment confirmation instantly from the app, without calling the bank.

⚡ Approved in as little as 1 business day, with no branch visits and no paperwork stacks. Applications are completed entirely online, from document upload to approval. There's no waiting weeks on a relationship manager to call you back.

Open a free multi-currency business account built for Hong Kong SMEs, or explore how Aspire's corporate card fits into your day-to-day spend.

Frequently Asked Questions

Do I need a Hong Kong bank account to use PPS?

Yes, PPS payments draw from a registered bank account with 1 of the participating banks — payments are made from pre-registered bank accounts across 20 different banks. Without a linked account at 1 of these banks, you won't be able to complete a PPS payment.

Can more than 1 person on my team use PPS for the business?

Technically, yes, if you share the registered PPS account credentials — but this isn't recommended from a security or audit-trail perspective. Most businesses are better served by having 1 designated person manage PPS payments, or by shifting recurring payments to a business account with proper multi-user access controls.

Is PPS free to use?

PPS itself generally doesn't charge the payer a fee for making a bill payment, though this can vary depending on your bank's own terms for the linked account. It's worth confirming with your bank whether any transaction charges apply, particularly for business banking accounts.

Can I use PPS to pay suppliers or vendors, not just government bills?

Generally no. PPS is designed for paying registered merchants — typically utilities, government departments, insurers, and similar institutions — rather than for peer-to-peer or business-to-business vendor payments. For paying suppliers, FPS, bank transfers, or a dedicated payment platform are the more appropriate tools.

Does PPS work the same way for a sole proprietorship as it does for a limited company?

Yes, largely. Both structures register with PPS the same way, using an ATM or credit card. Both pay their Business Registration Fee and Profits Tax through IRD merchant code 10.

The main difference is which bank account is linked. A sole proprietor might register a personal account, while a limited company should register its business account to keep records clean for accounting purposes.