Hong Kong’s well developed infrastructure and close distanced communities, while an excellent environment for large businesses to thrive in, are also excellent experimental grounds for new retailers from outside the city that want to test how receptive the local market is to their new product or service. If this applies to you, this article will aim to help get set up with the PayMe, Alipay, and PayPal payment systems so you can get to business as quickly as possible.
Setting Up a PayMe Business Account
PayMe is an incredibly versatile mobile payment app by HSBC that was initially used to quickly transfer funds between individuals, and now is also used by small businesses to conduct cardless and cashless transactions. Its ubiquitousness across Hong Kong makes it the perfect payment platform for budding startups.
Fees and Eligibility
PayMe’s fee structure is relatively straightforward, with the most basic type of using the Business app having a fee of 1.2%.
| Transaction Type | Fee |
| PayMe for Business app | 1.2% |
| PayMe API (website/app integration) | 1.5% |
| Point-of-Sale (POS) terminal | 1.5% |
To be eligible to create a PayMe for Business account, you will need to have an HSBC Commercial account. If you don’t bank with HSBC, you can still start a PayMe business account by opening a bank account through one of their acquiring partners such as AsiaPay HK, Global Payments Asia-Pacific (HK), Hang Seng Bank, ITS Global, and iFlare Hong Kong.
Note that you cannot use a personal PayMe account for business purposes, as business accounts don’t have limits on collection amounts.
What to Prepare
To open your PayMe Business account, you will first need to have a dedicated business mobile phone or tablet with a reliable internet connection, and a Hong Kong business mobile number to use as your login ID. You will also need to have your bank account details ready to perform the account opening.
The Accounting Opening Process
Setting up an account is a quick process, allowing you to start accepting payments as soon as you complete the in-app setup by following these steps:
- Download the PayMe for Business app on your business mobile phone or tablet and sign up using your business mobile number, business name, and business email address.
- Select your business’s category, upload your business logo, create a six-digit PIN, and verify your account via email.
- Connect to your bank account via username and password, and verify using your security device or the relevant banking app.
- Select your business profile and choose the bank account where collected payments will be deposited.
- Start generating QR codes and accepting payments from customers.
Setting up an AliPayHK Business Account
Alipay is another major payment gateway used in Hong Kong, known particularly for easily allowing visitors from mainland China to pay digitally. Other visitors to Hong Kong can connect their credit cards and pay via QR code. Next to Google Pay, Alipay HK is one of the most common payment platforms available in physical stores in the city, and is the recommended platform for small businesses looking to attract customers from mainland China and beyond.
As a business owner, you’ll be registering for the AlipayHK merchant account. A merchant account not only lets you receive payments but also provides you with access to valuable sales and transaction data directly on the app.
Fees Involved
AlipayHK’s fees for physical stores can be as low as 0%, but can vary for online payments or API integrations. Business owners should be aware that additional fees may apply depending on what they are selling, so it’s best to clarify the full cost structure with an AlipayHK representative during the application process.
What to Prepare
To apply for an AlipayHK business account, you will need a valid Hong Kong phone number, your company’s Business Registration Certificate, and bank account information, including copies of bank statements from the last three months. For sole proprietorship / unlimited liability companies, details about the legal representative(s) will also be required.
The Accounting Opening Process
If you plan to only use the QR code to collect payments, the application process is straightforward and can be done online. If you do require online or POS integration, you can contact AlipayHK directly at (852) 2245-3201 to get it set up.
- Visit the Alipay for Merchants website and click “Apply Now”
- Complete the application form on the AlipayHK website with your business details and submit for verification
- Once your application has been approved, typically within a few working days, you will be able to start accepting payments.
Setting up a PayPal Business Account
For conducting business online, you can always use PayPal’s platform, which will allow you to expand your market beyond Hong Kong when the time is right and conduct international transactions across multiple currencies.
Fees and Eligibility
On PayPal, domestic transactions are charged at the domestic rate of 3.9% + HK$2.35 per transaction, while international transactions will be charged the domestic rate plus an additional % fee based on the customer’s market location.
PayPal will also charge currency conversion fees when converting between currencies, varying between currencies.
Documents Required
To apply for an account, you will need a valid ID or passport copy, your business registration certificate or certificate of activity, and tax identification or proof of self-employment , as well as bank account information to link your account for fund transfers.
The Step-by-Step Account Opening Process and How Long it Takes
You can set up your account online on PayPal’s website, or call PayPal directly for assistance +852-3550-8584, available Monday-Friday, 9am – 6pm.
If you choose to sign up online:
- Fill in and submit the application form
- Verify your email address.
- Link your bank account.
- Link a credit card for making payments to suppliers if necessary.
- Verify your business information and identification documents.
- Start accepting payments.
Once your account is verified and your bank account is linked, you can transfer funds directly from your PayPal account to your bank account. If you need support, you can contact PayPal Hong Kong at +852-3550-8584 or visit their Business Resource Centre online.
Summary
With these payment platforms, you should be able to launch your products and services to any market size suited to your current business model. If you have any questions, drop us a message and we’d be happy to help!
