Discussion on licensing of stored value facility and rewards programs

By Ricky Ho:

One of the promotions with great success was spending campaign whereby every spending of a certain amount at any retail store or restaurant in the malls could be exchanged for coupon rewards for use in such malls. This however may raise speculation as to the need to obtain a licence from the Hong Kong Monetary Authority (“HKMA”) under the Payment Systems and Stored Value Facilities Ordinance (Chapter 584 of the Laws of Hong Kong) (the “SVF Ordinance”). This article discusses the licensing of stored value facilities and its applicability to rewards programs in Hong Kong.  READ FULL ARTICLE

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