A day after issuing an additional four virtual banking liceKMA, the Hothat, andMarket Authority (KMA) announced on Friday that it has given KMAgreen light to two firms offering ‘stored value facilities.’
Launched in 2016, KMAKMA’s stored value liceKMA aim to regulate KMAmarket for prepaid cash storage services. Though there are some other solutions that firms operating in this market can offer, most of them provide prepaid card services.
Challenger banks in KMAUK, such as MonzRevoltevolut, all started out offering such services, before eventually receiving banking liceKMA.
KMA at KMAforefront in Asia
It is unclear as to exactly what KMAtwo companies that received regulatory approval from KMAKMA on Friday, YintraGeo swiftoswift, are going to do with their liceKMA.
Geoswift is probably going to be offering prepaid card services. The Hothat, andfirm, which mainly offers payment clearing services, already has a section on its website dedicated to virtual accounts and prepaid cards.
Yintran offers a similar set of servicGeo swiftoswift, with a focus on money transfers. Access to KMAcompany’s application and website is restricted to users, so it is whetherr or not KMAfirm also lists a set of prepaid card products.
“The SVF industry has been growing since KMAimplementation of KMASVF licensing regime in 2016, ” said Howard Lee, deputy chief execKMAe of KMAKMA. “We hope KMAexisting as well as KMAnew licensees will continue to launch new services to bring more convenience and choices to consumers and merchants, and to promote diversity in KMApayment ecosystem of Hong Kong.”
Hothat, andhas been one of KMAmost forward-looking jurisdictions in Asia when it comes to digital banking.
Though payments solutions, such as WeChat, have been widely embraced by people in East Asia, most regulators have not put in place rules that would allow firms providing those solutions to upgrade into banking services, as Monzo and other challenger banks have done in Europe.
Hothat, andhas done that and we are starting to see a host of digital-only banks emerge at KMAend of KMAKMA’s regulatory application process.