Payment Connect was officially launched between the Chinese mainland and Hong Kong on June 22. It marks the interconnection of a faster payment system between the Chinese mainland and the Hong Kong Special Administrative Region (HKSAR), enabling residents of both areas to conduct real-time cross-boundary remittances. 
The first real-time cross-boundary transaction was carried out in Shenzhen, Guangdong Province, on June 22, according to the Shenzhen branch of the People's Bank of China (PBC).
An official from the PBC Shenzhen Branch said on Sunday that the newly launched Payment Connect system provides safer, more efficient and more convenient payment service for conducting economic and trade activities as well as personnel exchanges between Shenzhen and Hong Kong.
"It will help accelerate the integrated development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and further support the construction of Hong Kong as an international financial center," noted the official.
Analysts said that Payment Connect represents a significant innovation in the interconnection of financial infrastructure between the Chinese mainland and Hong Kong. 
The launch of Payment Connect can also enhance the usability of the yuan in cross-boundary retail scenarios, Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on June 22.
The linkage of the faster payment system between the mainland and the HKSAR was put forward by the PBC, China's central bank, and the Hong Kong Monetary Authority (HKMA), in order to deepen financial cooperation and to meet the demand of residents in both places for secure, efficient and convenient cross-boundary remittance service, according to a statement by the PBC on June 20.
According to the PBC, Payment Connect represents another key measure of the central government in supporting the development of the HKSAR. It brings convenience to people's daily lives, deepens financial cooperation between the mainland and Hong Kong, and enhances the efficiency and service quality of cross-boundary payments between the two sides. 
It also facilitates economic and trade activities and the flow of people, benefits Hong Kong in elevating its competitive edge, and reinforces its position as an international financial center and a major yuan trading hub, the PBC said.
"Payment Connect is one of the key initiatives in strengthening cooperation between the mainland and Hong Kong. This development will further promote Hong Kong's position as an international financial center and offshore yuan business hub," Eddie Yue, chief executive of the HKMA, said in a statement published on June 20.
Payment Connect refers to the linkage between the mainland's Internet Banking Payment System (IBPS) and Hong Kong's Faster Payment System (FPS). It supports real-time cross-boundary payment service for residents in both places, in compliance with relevant laws and regulations of the two places, read the PBC statement.
The HKMA said in a statement on Friday that by simply inputting the recipient's mobile number or account number, residents in both places can make instant small-value cross-boundary remittances using Payment Connect.
Previous financial infrastructure connections, such as Stock Connect, have laid the groundwork for cross-boundary collaboration between the mainland and Hong Kong, as well as within the GBA, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, shared.
"More efficient and convenient financial connectivity means more opportunities to promote capital flows and resource allocation, while facilitating economic activities," said Wang.
The central government has, in recent years, rolled out measures to support Hong Kong's development as an international financial center as well as the development of the GBA.
The collaboration, partnerships and initiatives between Shenzhen and Hong Kong are particularly noteworthy due to their geographic proximity.
As a result, as of May, Hong Kong residents held more than 3.21 million bank accounts in Shenzhen, statistics from the PBC Shenzhen Branch showed.
Yang also said that the new move can further leverage the enormous opportunities presented by the GBA with good use of the connectivity between the mainland and Hong Kong.
"A major strength of Hong Kong lies in its ability to offer the financial infrastructure and environment needed for companies to expand globally. New cooperation tools, such as Payment Connect, are set to leverage Hong Kong's institutional and international advantages alongside the vast scale of the mainland's real economy," said Yang.

(Cover image: Xinhua)