Stored value facilities: changing the fintech landscape in Hong Kong

Purpose To analyze the amendment to the Payment Systems and Stored Value Facilities Ordinance, Chapter 584 of the Laws of Hong Kong (“Ordinance”) and its impact on business development, with a focus on fintech companies operating in Hong Kong. Design/methodology/approach This article explains the concept of stored value facilities (“SVF”), discusses the overall changes in the Ordinance and comments on recent business developments of companies benefitting from SVF. Findings This article highlights the benefits of the amendment to the Ordinance and how fintech companies are evolving to better business practices to make use of the new legislation. Companies operating with SVF licences are creating healthy competition which is innovating the marketplace for products made available to customers. Originality/value This article contains valuable information about the changes to the Ordinance as well as insight on how the fintech landscape is adapting to a new regime from an experienced corporate finance and securities lawyer.