How to pay suppliers in Hong Kong dollars

Key takeaways 

• The process for paying a Hong Kong supplier isn’t the same as paying a supplier in Mainland China, even if the business operates across both markets.

• SWIFT transfers, cards, and local rails can all be used to pay suppliers, but differ in cost, speed, and reconciliation ease.

• With Airwallex you can hold and pay in HKD, using fast Hong Kong local rails where available, and pay interbank rates with a transparent 0.5%–1% FX margin.

Whether it’s your first time paying a supplier in Hong Kong or your twentieth, chances are you’ve got some questions: Should you pay in HKD or convert first? How can you predict FX fees better? Is this different from transferring to Mainland China?

This guide walks you through how HKD supplier payments work in practice, the payment methods available, what details you’ll need, and the most efficient way for you to settle your invoices.

Why Hong Kong suppliers prefer to be paid in HKD

Most Hong Kong suppliers expect payment in HKD and will often specify so in contracts. Paying in another currency shifts FX conversion cost and timing issues onto the supplier, which can affect the final amount they receive and impact their margins. 

Paying in their local currency also makes funds easier to process and reconcile.

How paying suppliers in Hong Kong differs from Mainland China

Hong Kong and Mainland China use different banking infrastructures. A Hong Kong supplier payment is treated like a standard international transfer: you route it using SWIFT and the beneficiary’s local bank information. 

Once the payment reaches Hong Kong, HKD is settled through HKD CHATS, Hong Kong’s real-time gross settlement system (RTGS) used by banks for domestic transfers. Participating banks and e-wallets also offer the Faster Payment System (FPS) for lower-value and high-frequency payments¹. 

Either way, your payment never enters Mainland China’s domestic payment system.

China’s national interbank payment and settlement system is run by the People’s Bank of China, and to pay suppliers in Mainland China you’ll need a 12 digit CNAPS code. CNAPS aren’t used in Hong Kong, and cross-border CNY payments are also subject to additional regulatory checks and reporting requirements.

If you’re unfamiliar with CNAPS and when it’s required, this explainer goes into more detail.

Ways to pay suppliers in Hong Kong dollars

There are plenty of ways to pay suppliers in HKD – the right option usually depends on how often and how much you’re paying them, and how cost effective your FX margins need to be.

International bank transfers (SWIFT)

For many UK businesses, the default option is an international bank transfer using SWIFT. You set up the payment using the supplier’s SWIFT/BIC and Hong Kong bank account details, and your bank sends the instruction through the international banking network.

SWIFT transfers are offered by most financial institutions, but additional bank fees can stack up and extend settlement times. 

Local payments

If you have access to a Hong Kong account, you can send HKD as a local payment. You enter the supplier’s Hong Kong bank details, and the bank routes the payment through Hong Kong’s local systems, such as HKD CHATS or FPS, depending on the payment type.

These methods are typically faster and easier than international transfers, but if you’re paying from a UK bank account, you won’t have access to these local rails.

Card payments and payment links

Some Hong Kong suppliers accept credit or debit card payments through payment gateways or payment links. This option is usually initiated by the supplier rather than the payer.

Card payments can work for one-off or lower-value invoices, but fees vary widely and FX costs are often higher. They’re rarely cost effective or easy to manage at scale.

Multi-currency payment platforms

Instead of sending HKD through your high street bank, you can pay suppliers directly using a multi-currency platform, using local Hong Kong rails where available.

If you send via SWIFT with your normal bank, the cost is usually around £15, before FX margins and any intermediary bank fees are applied. Let’s compare that with Airwallex’s multi-currency account – the cost is significantly lower with FX set at interbank rate + 0.5%–1%. 

Onboarding to these platforms may take longer compared with a banking system you’re already a part of, but they are designed to make ongoing cross-border transfers more accessible.

Managing suppliers across multiple countries? This broader UK guide to paying overseas suppliers breaks down your options in more detail.

The bank details you’ll need to pay HKD suppliers

When you’re ready to make the payment, the information you’ll need will depend on whether you’re paying bank-to-bank or through a payment platform.

For bank-to-bank payments (traditional international transfers and most fintech platforms), you’ll typically need:

• The supplier’s legal account name, exactly as registered with their bank

• The supplier’s Hong Kong bank account number

• The supplier’s bank name and, in some cases, branch details

• A SWIFT/BIC code identifying the receiving bank

• A payment reference, usually an invoice number, to support reconciliation Occasionally, a purpose-of-payment description, depending on the bank and payment route.

If you’re paying through a multi-currency platform that supports local HKD payments, you won’t need all of the above. Just the supplier’s local account information. And if card is your chosen method, your card details and/or a wallet identifier should be enough.

Paying Hong Kong suppliers from the UK: what to expect

Paying a Hong Kong supplier from the UK should be fairly straightforward, but it isn’t the same as paying a domestic invoice. Differences in time zones, FX margins, and cross-border routing can affect how quickly funds arrive and how much it costs you. Here’s what to look out for:

• Settlement speed variation: International transfers sent via SWIFT may involve intermediary banks with different timezones and cut-off points that affect timing; using local HKD rails should be faster.

• Unexpected fees are common: Intermediaries may deduct fees before the payment reaches the supplier. These costs aren’t always visible upfront, even when FX pricing is.

• Missing details can cause delays: Incorrect account names, missing invoice references, and using CNAPS codes often result in HKD payments being held up.

• Visibility can be limited: If you’re using your high street bank, don’t expect real-time visibility over your transfer status. It’s not always easy to confirm where the payment is without manual follow-up.

• The volume of payment matters: A payment method that’s acceptable for a one-off HKD invoice can become slow and expensive for recurring transfers.

• Consider month-end: If your payment platform isn’t integrated with your accounting or ERP system, reconciling can become complicated.

Common issues when paying suppliers in HKD

Even if you’ve chosen the best payment method for your needs, seemingly small errors can delay or complicate HKD supplier payments. Below are the ones that tend to catch UK businesses out.

Confusing Hong Kong and Mainland China requirements Hong Kong does not use the same banking system as Mainland China, so including CNAPS codes or selecting ‘China’ instead of ‘Hong Kong’ as your destination can cause unnecessary checks or rejection.

Paying in the wrong currency If a supplier invoices in HKD but receives GBP or USD, their bank may convert the funds automatically using its own rate and fees. The final amount received won’t match the invoice, which can lead to payment disputes.

Incorrect or incomplete bank details If the account name doesn’t exactly match the bank’s records, or key details like the SWIFT code are missing or incorrect, the payment may be held up or returned. 

Missing or unclear payment references Without a clear reference — usually an invoice number — suppliers may struggle to identify what the payment relates to when reconciling accounts, particularly if multiple invoices are outstanding. You might be left with follow-up emails to manage.

Using Airwallex to pay suppliers in Hong Kong dollars

If you’re paying Hong Kong suppliers regularly, your main concerns are probably FX cost, settlement speed, and admin overhead. Airwallex has been designed to address those specific challenges.

You can hold HKD in an Airwallex multi-currency account, with 22 other currencies, and pay suppliers in their local currency without having to convert funds for every invoice. That means FX is applied once, when you choose, rather than being embedded into each individual payment at a bank-set rate.

And where the supplier has a Hong Kong bank account, you can use cheaper, faster local rails. Over 90% of Airwallex payouts are processed this way, arriving the same day or within a few hours.

When it comes to cost, instead of unnecessarily high fixed transfer fees and opaque FX spreads, Airwallex offers market-leading rates with HKD payments priced at the interbank rate + 0.5%–1%. 

In a nutshell, Airwallex lets you pay Hong Kong suppliers without the hidden cost and delay associated with traditional bank transfers. 

FAQs

Do Hong Kong suppliers require payment in HKD?

Most Hong Kong suppliers invoice in HKD and expect to be paid in HKD. Paying in another currency usually means the supplier is liable for FX conversion fees and can cause reconciliation issues.

Can UK businesses pay Hong Kong suppliers without a Hong Kong bank account?

Yes, via international transfers like SWIFT or more modern fintech payment platforms like Airwallex.

How long do HKD payments from the UK usually take?

SWIFT payments typically take 1–5 business days, depending on the payment route and how many intermediary banks are involved. Payments sent via local Hong Kong rails should settle the same day.

Do Hong Kong payments require CNAPS or Mainland China banking details?

No. CNAPS and other Mainland China domestic details are not used for Hong Kong payments and should not be included.

Are Hong Kong payments processed faster than payments to Mainland China?

Yes, because they settle through Hong Kong’s payment systems, such as HKD CHATS and, for local transfers, the Faster Payment System (FPS). These systems are not subject to Mainland China’s capital controls or domestic clearing requirements.

What’s the difference between paying a Hong Kong company and a Mainland China company with a Hong Kong bank account?

If the payment is sent to a Hong Kong bank account, it is processed as a Hong Kong payment, even if the company is incorporated in Mainland China. Mainland China–specific requirements, such as CNAPS details and additional regulatory checks, only apply when the payment is sent to a Mainland China bank account.  This guide on how to pay Chinese suppliers explains what changes when payments are routed onshore.

Sources and references

1. https://www.airwallex.com/uk/blog/the-complete-guide-to-chinas-cnaps-payment-system