Good news – the second round of Hong Kong’s 2022 consumption vouchers will be distributed on August 7, 2022! Moreover, the original four distribution tools (Tap & Go, Alipay HK, Octopus, and WeChat Pay HK) will be increased to six.
Merchants are understandably thrilled upon hearing this announcement. Learning how this plan will benefit merchants, in general, will be valuable to their businesses. Likewise, it is also prudent to determine whether the two new payment options are appropriate for their industry.
In light of this new opportunity for high consumer volume business, how should online stores be set up?
What’s in this article for you?
- Latest updates on the 2nd phase of consumption volume
- Distribution schedule per electronic payment tool
- Comparison of the 6 electronic/digital payment tools
- Online store platform support
As part of this fantastic news, you will learn some strategies for successfully increasing the sales of your online store. Do not pass up this opportunity if you want to grow your business in a challenging market!
Latest News on the Second Phase of the 2022 Consumption Voucher Program
The 2022 consumption vouchers will be distributed in batches beginning August 7, according to the Hong Kong government’s announcement dated June 13. The collection periods, however, are different for registered applicants and those who registered during the first phase of the program.
During the second phase, citizens can receive vouchers through PayMe and BocPay in addition to the previous four distribution tools. Existing or new eligible citizens can register from June 23 to July 19 to receive the second voucher worth 5,000 HKD. Registration or change of information is possible through the following methods:
Distribution Schedule for Newly Registered 2022 Consumption Vouchers
When you are a newly eligible individual, the second tranche of the 2022 consumption voucher distribution differs. Below are the general requirements to be eligible.
- Eligible Hong Kong permanent residents and new arrival aged 18 or above
- Individuals arriving in Hong Kong with a “Permit for Proceeding to Hong Kong and Macau” (also called “One-way Permit”)
- Dependents of Hong Kong permanent residents
Furthermore, the timetable of collection for newly registered individuals is seen below.
Timetable for Newly Registered Consumption Voucher Collection (Except Octopus)
Timetable for Newly Eligible Registered Persons to Collect Coupon (Octopus)
Octopus will have more installments than other payment platforms. This is important to remember if you are thinking about or have already registered to collect consumption coupons through Octopus.
Allocation Schedule for Previously Registered 2022 Consumption Vouchers
The 2022 consumption voucher will be automatically deposited into the registered SVF account on the disbursement date. This applies if recipients use HSBC PayMe, BocPay, Alipay HK, Tap & Go, and WeChat Pay HK to obtain the coupons. To use the consumption vouchers, eligible registrants only need to open the corresponding application. Furthermore, recipients will receive a reminder via push notification, SMS, or email, once the consumption voucher is disbursed to their account. In order to receive an alert via Push notifications, eligible registrants must first enable the said function. Furthermore, the distribution schedule is as follows.
Issuance Schedule for Registered Consumption Coupon Users (except Octopus)
Distribution Schedule for Registered Octopus Users
Octopus users must be aware that the second round of consumption vouchers will be distributed in 3 phases.
Which merchants are eligible for the Voucher Program?
According to official guidelines, local merchants, catering, and service outlets can participate in the voucher program. Local merchants, as defined in the guidelines, are online stores and shopping platforms that possess a business registration (BR). Furthermore, as long as the online store registration is a local website, the program is applicable to direct purchases made from non-local merchants. It is also critical in the aforementioned setup to ensure that the customer’s transaction is not an overseas purchase.
Besides that, 2022 consumption vouchers are not appropriate for P2P (person-to-person) transactions. To receive consumer coupons, merchants must open a business account with an electronic payment tool.
Further reading: Can the retail industry save itself from the pandemic through digital transformation? Learn 4 ways to achieve digital transformation!
Comparison of 6 Consumption Voucher Payment Tools and Methods
*The above information is for reference only
Further reading: 7 Mistakes Novices Avoid When Operating an Online Store
eCommerce and Merchant-related Fees and Discounts for Payment Tools
PayMe
Good news for all existing HSBC Business Customers! Are you a new merchant who registered with PayMe for Business through PayMe for Business App or Business Internet Banking? New registrants of the aforementioned service until November 30 will be eligible for the 2022 Consumption Voucher Program (Phase 2). During the initial period, the first few online collections can enjoy a 0% transaction fee and a $3000 reward.
Customers will also be able to receive an additional business account opening fee rebate! You are eligible for this promotion if you successfully open a business integrated account and complete the PayMe for Business registration process before November 30, 2022. Online and offline collections can enjoy a 0% transaction fee and an HKD300 reward during Phase 2 of the 2022 Consumption Voucher Program.
Octopus
The first transaction cost for online purchases is always 1.7%, whereas the fee for offline is 1.2%. The cutoff every day is at midnight, and the settlement period follows the transaction by four working days.
Using Octopus App’s commercial version, merchants can create an exclusive payment QR Code, electronic payment display board, or payment link. Retailers will receive 1 Octopus mobile cash register when they successfully set up an account in a physical store.
After the promotional period, a standard 1.2% fee will be charged for each transaction under the PayMe for Business app. For transactions completed through the PayMe API or POS terminals, a standard 1.5% fee will be applied.
Alipay HK
Online transactions cost 1.7% of the total, whereas offline transactions require 1.2%. Alipay HK fees provided by various e-commerce platforms may differ. The settlement period is four business days after the transaction.
Tap & Go
During the coupon program period, the transaction fee for online payments made with a Tap&Go QR code will be waived. Following the end of the consumption voucher program, the handling fee will be 1.2% of the transaction amount. The 0% transaction fee discount applies to both “Smart POS” and “FPS” payment plans.
Mastercard and UnionPay transaction fees are as low as 1.5% of the total amount. This, however, is only applicable to merchants who are applying for the first time.
WeChat Pay
When using the “QR Code” to receive payment, SME merchants are exempt from all transaction fees.
Online collection fees can be as low as 1.3%. Additionally, the settlement period is four business days after the transaction.
*The above information is for reference only
Which online store platforms can collect 2022 consumption vouchers?
Online retailers must understand that not all e-commerce platforms support the six payment methods listed above.
Below is the comparison of the payment methods based on the 4 major eCommerce platforms in Hong Kong: Shopify, SHOPLINE, Boutir, WooCommerce, and SHOPAGE.
*The above information is for reference only
Using Conversational Commerce to Seize the New Round of 2022 Consumption Voucher Business Opportunities
Online merchants apparently are deploying strategies to meet the upcoming cycle of consumption voucher to increase business opportunities. This is in addition to opening the collecting techniques of major electronic payment platforms. Utilizing instant messaging software effectively is the greatest way to bring about adverse growth in the era of distance marketing.
Besides leveraging the business opportunities offered by consumption coupons through promoting your products on well-known advertising platforms like Facebook and Google, retailers should also provide quality customer service through communication channels like WhatsApp. As potential customers interact with an online store, they need to be served promptly. Retailers must take the opportunity to develop a solid rapport with customers through communication channels such as WhatsApp, Messenger, etc.
WhatsApp is the ideal option if you want to effectively communicate with your customers. With a penetration rate up to 80% in Hong Kong, connecting with consumers will be a breeze! Besides, you can use the power of Facebook/Instagram ads to direct inquiries to WhatsApp. In addition to making communication convenient, you can use WhatsApp Business API extensions (auto-replies, personalized broadcasts, etc.) to retain customers.
Further reading: 3 Benefits of WhatsApp Business to Boost Your E-commerce Sales
A paid business tool that offers effective and secure communication channels, WhatsApp Business API does more than the free WhatsApp Business.
Further reading: 3 Reasons Why Directing Entire Ad Traffic to Your Website is a Bad Idea
Auto-reply to Handle Inquiries
When a consumer first encounters a product, they frequently have numerous questions. Yet, directing advertisements to the website will not instantly answer their typical queries. As a result, consumers give up purchases when they can’t have their queries answered, resulting in a high customer churn rate. Fortunately, the WhatsApp Business API’s Chatbot feature makes it simple to respond to consumers in real-time. Customers may be catered to instantly, improving their satisfaction, by creating your own Chatbot auto-replies with WhatsApp Business API!
One-click Broadcast Remarketing
What happens after getting the customer’s contact details? Online retailers can take the initiative to send personalized content even if the customer does not purchase immediately after inquiring. Moreover, sharing promotional activities or offers is a trend nowadays! Marketing initiatives can include welcome offers, new product alerts, and other information.
VIMOS Sales Conversation Smart Reply covers WhatsApp and more capabilities that go beyond simply assisting you in extending sales channels. Conjointly, it can upgrade the way you engage with your customers, turning them into devoted consumers! Watch out for product updates, as VIMOS is bound to support Facebook functionalities soon.
Through the VIMOS platform, online retailers can enable WhatsApp Business API’s extended features. The key functions include the following.
- Chatbot auto-reply
- Simultaneous team usage to improve work efficiency
- One-click WhatsApp Broadcast to promote, and save phone calls
- 1 on 1 Live Video Pitching
Discover the top-rated features of WhatsApp Business API and more, by signing up for a 7-day free trial of VIMOS. Explore the new customer service marketing features and be the first to seize the business opportunities offered by the 2022 consumption vouchers! Book a 15-minute demo with a VIMOS specialist and enjoy additional discounts.
