Yedpay! joins queue of hopefuls seeking a virtual bank licence in Hong Kong
Company hopes to expand into corporate banking business such as cross border remittance and other transfers
The Payment Cards Group, also known as Yedpay!, is planning to apply for a virtual bank licence from the Hong Kong Monetary Authority to expand into the corporate banking business, according to a senior executive.
The company offers Hong Kong mobile or internet payments for 3,000 taxi drivers, 3,000 merchants in wet markets, as well as more than 2,000 small-and-medium-sized companies that accept payment via Alipay and UnionPay, according to its chief information security officer Alva Wong.
“We would like to be among the first batch of companies to apply for a virtual bank licence from the HKMA before the deadline on August 31. If successful, we can expand into a full range of corporate banking services for our merchants and SMEs such as cross border remittance and other transfers,” Wong said in an exclusive interview with the South China Morning Post on Monday.
Hong Kong could issue first virtual bank licences by year-end
“If we can get the licence, we would also be able to explore opportunities to work with other virtual banks in overseas markets,” he said.
“Many start-ups, including my company, have difficulties in opening bank accounts with traditional banks. We hope the virtual banks can help these SMEs to enjoy banking services. We are not a direct competitor with traditional banks, but we could fill in the gaps for services they do not offer,” Wong said.
We are not a direct competitor with traditional banks, but we could fill in the gaps for services they do not offer
HKMA deputy chief executive Arthur Yuen last week announced guidelines for virtual banks in Hong Kong. Yuen set August 31 as the deadline for applicants who want to be among the first batch to be assessed for the licences to be issued by the end of this year.