Hong Kong’s digital voucher scheme will help ‘build platform’ for city’s electronic payment future, finance chief says
- ‘Using an e-wallet isn’t as distant as one may think,’ Paul Chan says in dismissing concerns that adoption remains far behind mainland China
- The HK$5,000 vouchers, paid out in instalments, are intended to boost spending in an economy battered by the coronavirus pandemic
Hong Kong’s finance chief has said the coming roll-out of the city’s HK$36 billion (US$4.6 billion) voucher scheme is intended to push residents towards embracing electronic payments and lay the groundwork for a digital transformation that will expand career opportunities for young residents.
Residents will have at least five months to use them on public transport, retail shopping and restaurant dining in the city.
Explainer: Who qualifies for HK$5,000 vouchers, who doesn’t, and where can you spend them?
Writing on his official blog on Sunday, Chan said he noticed many people had been discussing how they would spend their vouchers.
“They sounded happy as they talked about this, so we can expect this atmosphere to stimulate residents’ desire to spend money, create a multiplier effect for the scheme, and boost the city’s economy more broadly,” he wrote.
Permanent residents as well as recent migrants from the mainland aged 18 and above are eligible for the scheme.
The online application period, which begins on July 4 and closes on August 14, will require residents to use their Hong Kong identity cards or the government’s iAM Smart app.
Residents who prefer using AlipayHK, Tap & Go and WeChat Pay HK e-wallets can redeem the digital vouchers over two instalments.
While explaining to some unsure residents that they only needed to register once to redeem the full amount, Chan also noted some had questioned whether digital vouchers made sense given that electronic payments were not yet as common in Hong Kong as in mainland China.
But he dismissed those concerns.
Using an e-wallet isn’t as distant as one may think. Even for some older communities, many stalls in the markets have installed electronic payment devices
“Electronic payments and online shopping are the main trends of the future retail market … Through this consumption voucher scheme, all residents will be pushing forward and building a platform for Hong Kong’s electronic payments,” he said.
“Using an e-wallet isn’t as distant as one may think. Even for some older communities, many stalls in the markets have installed electronic payment devices.”
Chan said the new scheme would see more consumers willing to embrace e-payments, something that would boost transaction efficiency, lower transaction costs, and encourage new business opportunities to emerge.
The financial chief said that push, along with the ongoing collaboration with Beijing on the potential for digital currencies in Hong Kong, were all part of a plan for the city’s digital economic transformation.
“Different levels of the economy are seeking new applications and services in response to challenges and opportunities offered by technological advancements … These will create a greater impetus and space for Hong Kong’s growth, as well as a broader stage and more diverse choices for young people to explore their interests,” he said.
With Hong Kong set to mark the 24th anniversary of its return from British rule on Thursday, Chan said he was confident the city and its young people could look forward to a bright future.
