HSBC Hong Kong announced the launch of a new payment collection Application Programming Interface (API). It allows companies to incorporate the instant electronic Direct Debit Authorisation (eDDA) and real-time funds transfer into their own digital service platforms. The solution can help businesses provide a significantly faster and simpler one-stop payment journey for their clients.
In the past, clients had to separately log on to their banking accounts to set up a direct debit instruction and the authorisation process would take up a few days to complete.
The new API solution covers the end-to-end process – from authorisation set-up, real-time verification to initiation of direct debit – all from within the businesses’ owned platforms. This is expected to translate into a seamless experience for the customer. The fully automated process eliminates the manual paperwork involved and further enhances operational efficiency in cash flow management.
Yvonne Yiu, Head of Global Liquidity and Cash Management, Hong Kong, HSBC, said, “When it comes to payments, simplicity and convenience make a paramount difference to customer experience. Designed to allow our corporate customers to stay ahead of the evolving demands of their clientele, this innovative cash management API also supports businesses in their digital transformation and daily operation optimisation.”
The new API capability has been adopted by Futu Securities, a FinTech unicorn and digital brokerage service provider in Hong Kong. Investors holding HSBC accounts can now set up the eDDA instruction and top up their securities trading accounts instantly from within Futu’s own digital platform, thereby allowing them to capture fast-moving investment opportunities. The API solution also helps Futu achieve operational efficiency with streamlined reconciliation process of incoming funds.
On top of brokerage firms and financial institutions, the collection API can also be applied to various sectors, such as insurance, telecommunications, e-commerce and education.