Hong Kong has the capability of becoming a 'credit card' society. Now that almost everything uses credit cards as payment methods and with the help of mobile payment development, it is not possible a well-developed city would turn into a cashless society. This was meant by the blog of Ceajer Chan Kakeung, Secretary for Financial Services and the Treasury.
According to the Hong Kong Standard, it was said before that Hong Kong is left behind from the mainland China speaking of adopting a financial technology, in connection to this Secretary Chan said it is because of the high penetration of credit cards. He claimed further that Hong Kong already has a very mature personal credit system and an established cashless payment system. Citizens in Hong Kong who hold credit cards averaged to four for every citizen.
This situation does not put Hong Kong into a pressing need to develop stored value facilities for retail purposes of citizens who locally spend since they have enough alternatives. Chan said about mainland China as skipping the "credit card era" and jumped directly into "internet finance."
Hong Kong is a little more advanced compared to mainland China as China is in the early stage of developing a personal credit market. Mainland Citizens have no credit history and this made them having difficulty in obtaining loans, Chan added. That's why today they are more internet finance oriented than credit card oriented.
Chan said also that financial technology may be different in a certain area compared to others because it would rely on how much consumption and what economic structure the area has. In the mainland, an ecosystem breeding businesses selling a range of services and goods is common along with new profitable models which arose due to a reduction in transaction costs.
It is expected that advancement of e-commerce in Hong Kong would get further. The 13 license holders of stored- value facilities today are improving their mobile payment services. Chan said credit card society or cashless society would be possible with the participation of established financial institutions and innovations from startups and also from consumers.
How it is to live with no more cash to spend but all is done through credit cards? Fastcoexist gave the negative as well as the positive result it could have.
