Macau expands e-payment trials to transport, gov’t services, and campuses

One year into its two-year e-MOP launch timeline, Macau is expanding its sandbox trials to public transport, e-government services, and university campuses, the Monetary Authority of Macao (AMCM) confirmed.

In a written reply to legislator Si Ka Lon, the AMCM said the basic infrastructure and core system for the e-MOP were completed at the end of last year, with testing now proceeding under the principles of safety, risk controllability, and prudence.

The authority has been presenting the digital currency to various public departments, gathering feedback, and reviewing the sandbox process to refine system functions.

Public transport next in line

The Transport Bureau (DSAT) will coordinate with relevant departments, within its scope of authority, to support e-MOP usage on public transport, the AMCM said. The bureau has already been promoting diversified electronic payment methods across the city’s transport network, creating a potential entry point for the digital pataca in everyday low-value transactions.

Legislator Si noted in his enquiry that the e-MOP project is moving from policy design to practical testing following the release of the digital pataca white paper at the end of 2024 and the completion of the first phase of system development. He asked how the government planned to scale up testing, including in public transport and smart contract applications, and whether related laws and supporting guidelines would be revised in tandem.

Cross-border milestone with mBridge

The city has also begun applying central bank digital currency technology to cross-border transactions after the AMCM became a full member of the Multiple Central Bank Digital Currency Bridge, known as mBridge, earlier this year. In the first phase, 11 local banks were authorised to conduct related business.

On June 2, the first day of system operation, three banks completed 23 cross-border transactions covering trade settlement and international remittances. The total transaction value was equivalent to nearly MOP1.3 billion, marking a practical step forward for the region in the cross-border use of central bank digital currencies.

In his enquiry, Si also raised questions about the technical integration of the e-MOP with mBridge, the potential use of the digital pataca to establish a China–Portuguese-speaking countries settlement channel, and risk controls for cross-border usage, data flows, and multi-jurisdictional regulatory coordination.

The AMCM said it would continue exploring links between the e-MOP infrastructure and central bank digital currency systems or other financial infrastructure in different countries and regions.

On the domestic front, the e-MOP system is expected to bolster Macau’s financial infrastructure.

Planned work includes improving transaction switching, reconciliation, clearing, and settlement efficiency under the Simple Pay framework, with the goal of shortening settlement cycles for merchants and enhancing the business environment.

The AMCM stated it would proceed with the orderly drafting of a comprehensive legal and regulatory framework for the e-MOP, ensuring the currency can be supervised by law and operate under clear rules once formally launched. Legal affairs authorities will provide technical legal support and facilitate the subsequent legislative process for the digital pataca.