Hostname: page-component-78c5997874-8bhkd Total loading time: 0 Render date: 2024-11-10T21:20:06.076Z Has data issue: false hasContentIssue false
  • English
  • Français

The Risks of Mobile Payment and Regulatory Responses: A Hong Kong Perspective

Published online by Cambridge University Press:  09 June 2020

Robin Hui HUANG ,
Cynthia Sze Wai CHEUNG  and
Christine Meng Lu WANG
Robin Hui HUANG
Affiliation:
Chinese University of Hong Kong
Cynthia Sze Wai CHEUNG
Affiliation:
Chinese University of Hong Kong
Christine Meng Lu WANG
Affiliation:
Chinese University of Hong Kong
Get access Rights & Permissions [Opens in a new window]

Abstract

Mobile payment generally refers to transactions made through the applications of a portable electronic gadget without the transfer of cash. As one of the most disruptive technologies for finance, mobile payment has been rapidly transforming the traditional financial industry. While it brings important benefits, there are also various risks, in terms of liquidity, security, and data privacy, that call for adequate regulatory responses. As a global financial centre, Hong Kong has gradually established a regulatory framework for mobile payment, addressing the relevant risks with rules on payment and privacy. However, there is still room for further improvement, in terms of measures to deal with cybersecurity issues and strengthen the protection of personal data. The Hong Kong experiences suggest that, to regulate a new and fast-growing industry such as mobile payment, the regulatory regime needs to be improved continuously to alleviate the risk concerns, so as to enhance the protection of financial consumers and society at large.

Keywords

mobile paymentFinTechfinancial regulationcybersecuritydata privacyHong Kong
Type
Legal Risk Society in East Asia
Information
Asian Journal of Law and Society , Volume 7 , Issue 2 , June 2020 , pp. 325 - 343
Copyright
© Cambridge University Press and KoGuan Law School, Shanghai Jiao Tong University 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

•

This research received support from a Direct Research Grant at the Chinese University of Hong Kong and also from the Hong Kong Research Grants Council’s General Research Fund project ‘The Regulation of Fintech in China’.

*

Professor of Law, Faculty of Law, Chinese University of Hong Kong. Correspondence to Hui Huang, Faculty of Law, Room 521, Lee Shau Kee Building, Chinese University of Hong Kong, Shatin, New Territories, Hong Kong. E-mail address: robinhuang@cuhk.edu.hk.

References

REFERENCES

Alipay (2019) “Shenme Shi Zhanghu Anquan Xian? Baozhang Fanwei Shi Shenme? [What Is Account Security Insurance? What Is the Insurance Coverage?],” https://cshall.alipay.com/lab/help_detail.htm?help_id=510475 (accessed 1 October 2019).Google Scholar
Alipay HK (2019) “Account Security,” https://www.alipayhk.com/en/account-security (accessed 1 October 2019).Google Scholar
Apple (2018) “Set up a SIM PIN for Your IPhone or IPad,” https://support.apple.com/zh-hk/HT201529 (accessed 1 October 2019).Google Scholar
BBC (2018) “British Airways Breach: How Did Hackers Get In?,” 7 September, https://www.bbc.com/news/technology-45446529 (accessed 1 August 2019).Google Scholar
Cheng, Henry (2016) “Part 1: Smart Tips on Using Stored Value Facilities,” https://www.hkma.gov.hk/eng/key-information/insight/20160823.shtml (accessed 1 August 2019).Google Scholar
Consumer Council (2016) “Get to Know Your Data Protection Rights before Using Mobile Payment Services,” https://www.consumer.org.hk/ws_en/news/press/480/mobile-payment-services.html (accessed 1 August 2019).Google Scholar
Decode Project (2019) “Have More Questions,” https://decodeproject.eu/have-more-questions (accessed 1 August 2019).Google Scholar
Ejinsight (2016) “Payment System Regulations: Blessing or Curse for Mobile Sector?,” http://www.ejinsight.com/20160928-payment-system-regulations-blessing-or-curse-for-mobile-sector/ (accessed 1 August 2019).Google Scholar
Ejinsight (2018) “HKMA Receives Complaints of Fraudulent Use of Newly Launched FPS,” http://www.ejinsight.com/20181025-hkma-receives-complaints-of-fraudulent-use-of-newly-launched-fps/ (accessed 1 August 2019).Google Scholar
European Commission (2019) “Decentralised Citizens Owned Data Ecosystem,” https://cordis.europa.eu/project/rcn/206387/factsheet/en (accessed 1 August 2019).Google Scholar
Financial Services and the Treasury Bureau & Hong Kong Monetary Authority (2014) “The Proposed Regulatory Regime for Stored Value Facilities and Retail Payment Systems in Hong Kong Consultation Conclusion,” https://www.hkma.gov.hk/media/eng/doc/key-information/press-release/2014/20141031e4a1.pdf (accessed 1 August 2019).Google Scholar
HKMA (Hong Kong Monetary Authority) (2015a) “Regulatory Regime for Stored Value Facilities and Retail Payment Systems Commences Operation,” https://www.hkma.gov.hk/eng/key-information/press-releases/2015/20151113–3.shtml (accessed 1 August 2019).Google Scholar
HKMA (2015b) “Supervisory Policy Manual TM-E-1: Supervision of E-banking,” https://www.hkma.gov.hk/media/eng/doc/key-functions/banking-stability/supervisory-policy-manual/TM-E-1.pdf (accessed 1 August 2019).Google Scholar
HKMA (2019a) “Explanatory Note on Licensing for Stored Value Facilities,” https://www.hkma.gov.hk/media/eng/doc/key-functions/finanical-infrastructure/infrastructure/retail-payment-initiatives/Explanatory_note_on_licensing_for_SVF.pdf (accessed 1 August 2019).Google Scholar
HKMA (2019b) “Register of Stored Value Facility Licensees,” https://www.hkma.gov.hk/eng/key-functions/international-financial-centre/regulatory-regime-for-svf-and-rps/regulation-of-svf/register-of-svf-licensees.shtml (accessed 1 August 2019).Google Scholar
HKSAR Government Press Releases (2018) “LCQ21: Regulation of Third-party Payment Platforms,” https://www.info.gov.hk/gia/general/201806/20/P2018062000299.htm (accessed 1 August 2019).Google Scholar
Hong Kong Business (2018) “Hong Kong Suspends E-wallet Top-Ups Amidst Fraud Reports in Blow to Smart Banking Push,” https://hongkongbusiness.hk/financial-services/news/hong-kong-suspends-e-wallet-top-ups-amidst-fraud-reports-in-blow-smart-banki (accessed 1 August 2019).Google Scholar
Hong Kong Interbank Clearing Limited (2019) “FPS,” https://fps.hkicl.com.hk/eng/fps/index.php (accessed 1 August 2019).Google Scholar
Hong Kong Internet Registration Corporation Limited (2018) “HKIRC Announces the Results of the ‘Mobile Payment: Digital Transformation from Customers to Merchants’ Survey,” https://www.hkirc.hk/content.jsp?id=63#!/&in=/company_info/pressrelease.jsp?item=535 (accessed 1 August 2019).Google Scholar
HSBC (2019) “PayMe Help,” https://payme.hsbc.com.hk/help (accessed 22 November 2019).Google Scholar
Legislative Council (2018) “E-wallets in Hong Kong,” https://www.legco.gov.hk/research-publications/english/essentials-1718ise08-e-wallets-in-hong-kong.htm#endnote7 (accessed 1 August 2019).Google Scholar
Lum, Alvin, & McCarthy, Simone (2018) “Cathay Pacific Data Leak: Airline Warns Customers to Guard against Phishing Attempts,” South China Morning Post, 28 October, https://www.scmp.com/news/hong-kong/law-and-crime/article/2170573/cathay-pacific-data-leak-airline-warns-customers-guard (accessed 1 August 2019).Google Scholar
McNair, Corey (2018) “Global Proximity Mobile Payment Users,” https://www.emarketer.com/content/global-proximity-mobile-payment-users (accessed 1 August 2019).Google Scholar
Merchant Savvy (2019) “30 Amazing Stats Demonstrating the Unstoppable Rise of Mobile Payments Globally,” https://www.merchantsavvy.co.uk/mobile-payment-stats-trends/ (accessed 1 August 2019).Google Scholar
Mingbao (2018) “Dianzi Qianbao Xian Loudong, Shimin Bei Touqian Baojing, Jinguanju Jiaoting Dianzi Zhijie Kouzhang Shouquan Fuwu [The Citizens’ Money Was Stolen Because of Vulnerabilities in E-wallet, HKMA Has Suspended the eDDA Service],” 25 October, https://news.mingpao.com/pns/經濟/article/20181025/s00004/1540405551317/電子錢包現漏洞-市民被偷錢報警-金管局叫停電子直接扣帳授權服務 (accessed 1 August 2019).Google Scholar
Ministry of the Interior and Safety (2019) “Administrative Penalties,” https://www.privacy.go.kr/eng/enforcement_02.do (accessed 1 August 2019).Google Scholar
Office of the Australian Information Commissioner (2019) “When to Report a Data Breach,” https://www.oaic.gov.au/privacy/notifiable-data-breaches/when-to-report-a-data-breach/ (accessed 1 August 2019).Google Scholar
On.cc (2017) “Peihe Neidi Dianhua Shimingzhi, Gangren Yonghu 7 Yueqian Xu Dengji [Hong Kong Users Must Register before July to Cooperate with the Telephone Real-Name System in Mainland China],” 1 February, https://hk.on.cc/hk/bkn/cnt/news/20170201/bkn-20170201000458157–0201_00822_001.html (accessed 1 August 2019).Google Scholar
PCPD (Privacy Commissioner for Personal Data ) (2010) “The Collection and Use of Personal Data of Members under the Octopus Rewards Programme Run by Octopus Rewards Limited,” https://www.pcpd.org.hk/english/enforcement/commissioners_findings/investigation_reports/files/R10_9866_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2011a) “Prolonged Retention of Customers’ Bankruptcy Data by Hang Seng Bank Limited,” https://www.pcpd.org.hk/english/enforcement/commissioners_findings/investigation_reports/files/R11_6121_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2011b) “Transfer of Customers’ Personal Data by CITIC Bank International Limited to Unconnected Third Parties for Direct Marketing Purposes,” https://www.pcpd.org.hk/english/enforcement/commissioners_findings/investigation_reports/files/R11_1745_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2012) “The Collection and Use of Personal Data of Members under the MoneyBack Program Run by A.S. Watson Group (HK) Limited through ‘PARKnSHOP’,” https://www.pcpd.org.hk/english/enforcement/commissioners_findings/investigation_reports/files/R12_3888_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2016) “Code of Practice on the Identity Card Number and Other Personal Identifiers,” https://www.pcpd.org.hk/sc_chi/files/faq/picode_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2019a) “Guidance on Data Breach Handling and the Giving of Breach Notifications,” https://www.pcpd.org.hk//english/resources_centre/publications/files/DataBreachHandling2015_e.pdf (accessed 1 August 2019).Google Scholar
PCPD (2019b) “The Ordinance at a Glance,” https://www.pcpd.org.hk/english/data_privacy_law/ordinance_at_a_Glance/ordinance.html (accessed 1 August 2019).Google Scholar
Peng, Lifang (2018) “Wudingxiang Xuetang: Zhuanshukuai Jie Dianzi Qianbao Loudong, Sanzhao Zibao Fang Hukou Beidao [FPS Uncovering Vulnerabilities in E-wallet, Three Ways to Prevent the Account from Being Stolen],” Mingbao, 28 October, https://ol.mingpao.com/ldy/cultureleisure/culture/20181028/1540663773788/無定向學堂-轉數快揭電子錢包漏洞-三招自保防戶口被盜 (accessed 1 August 2019).Google Scholar
People’s Bank of China (2014) “2013 Nian Zhifu Tixi Yunxing Zongti Qingkuang [Payment System Operations Report in 2013],” http://www.pcac.org.cn/Upload/image/20170519/20170519085324_35095.pdf (accessed 1 August 2019).Google Scholar
People’s Bank of China (2019) “2018 Nian Zhifu Tixi Yunxing Zongti Qingkuang [Payment System Operations Report in 2018],” http://www.gov.cn/xinwen/2019–03/20/5375401/files/1e1a87e02453432ab032ae5187b7804a.pdf (accessed 1 August 2019).Google Scholar
Pew Research Centre (2019) “Mobile Fact Sheet,” https://www.pewinternet.org/fact-sheet/mobile/ (accessed 1 August 2019).Google Scholar
PwC (2019) “It’s Time for a Consumer-Centred Metric: Introducing ‘Return on Experience’,” https://www.pwc.com/gx/en/consumer-markets/consumer-insights-survey/2019/report.pdf (accessed 1 August 2019).Google Scholar
Simon-Kucher & Partners (2019) “How Behavioral Science Can Unleash Digital Payments Adoption,” https://www.simon-kucher.com/sites/default/files/2018–12/SimonKucher_Report_Payment%20Adoption_Final_0.pdf (accessed 1 August 2019).Google Scholar
Statista (2019) “Mobile Payments Worldwide—Statistics & Facts,” https://www.statista.com/topics/4872/mobile-payments-worldwide/ (accessed August 2019).Google Scholar
WeChat Pay (2019) “Account Security,” https://pay.wechat.com/en_hk/safety.shtml (accessed 1 October 2019).Google Scholar
Wong, Kai-yi, & Zhu, Guobin (2016) Personal Data (Privacy) Law in Hong Kong: A Practical Guide on Compliance, Hong Kong: City University of Hong Kong Press.Google Scholar
Woodruff, Mandi (2015) “Google Wallet Funds Are Now FDIC-Insured,” Yahoo Finance, 20 April, https://finance.yahoo.com/news/google-wallet-venmo-paypal-fdic-insurance-215842545.html (accessed 1 August 2019).Google Scholar
Xu, Jialong (2018) “Disanfang Fengxian Yu Heike Kechengzhiji [Third-Party Risk Gives Hackers a Chance],” Hong Kong Economic Journal, 5 November, https://www1.hkej.com/features/article?q=%23%E8%BD%89%E6%95%B8%E5%BF%AB%E6%99%82%E4%BB%A3%23&suid=3966743977 (accessed 1 October 2019).Google Scholar
Zhu, Yinling (2018) “Zhifubao Shengji Yanshi Daozhang, Bei Zhapian Ke Yuanlu Tuihui [Alipay Upgraded the Delayed Remittance, Fraudulent Payments Can Be Returned],” Xinhuanet, 22 August, http://www.xinhuanet.com/fortune/2018–08/22/c_1123307380.htm (accessed 1 October 2019).Google Scholar