The Risks of Mobile Payment and Regulatory Responses: A Hong Kong Perspective

Mobile payment generally refers to transactions made through the applications of a portable electronic gadget without the transfer of cash. As one of the most disruptive technologies for finance, mobile payment has been rapidly transforming the traditional financial industry. While it brings important benefits, there are also various risks, in terms of liquidity, security, and data privacy, that call for adequate regulatory responses. As a global financial centre, Hong Kong has gradually established a regulatory framework for mobile payment, addressing the relevant risks with rules on payment and privacy. However, there is still room for further improvement, in terms of measures to deal with cybersecurity issues and strengthen the protection of personal data. The Hong Kong experiences suggest that, to regulate a new and fast-growing industry such as mobile payment, the regulatory regime needs to be improved continuously to alleviate the risk concerns, so as to enhance the protection of financial consumers and society at large.