Hong Kong Enterprises Face Integration, Fraud, and Licensing Challenges in Global Expansion

According to the 2026 Adyen Index, international expansion has become a top priority for Hong Kong retailers. The report indicates that 40% of business merchants plan to enter new markets, with an average budget reaching HK$1.65 million. EMEA and the Asia-Pacific region are the primary target markets.

However, global expansion brings significant complexities. Retailers face a diverse payment environment that includes varying local preferences and regulatory frameworks. System integration, fraud risks, and licensing barriers often delay or hinder expansion plans.

System Integration as a Major Barrier

Entering new markets often requires setups from multiple vendors, independent contracts, and unique payment integrations, which increases operational burdens. All surveyed merchants reported obstacles in broader AI adoption, with 35% specifically mentioning difficulties in integrating AI into existing systems. There is no unified approach, and each new integration consumes resources.

Integrating operations can eliminate this friction. For example, Limitless Technology Group integrated four payment gateways into one through Adyen, standardizing payment reporting across six markets, including Hong Kong, Singapore, and Australia. The group launched over 10 online stores in four markets within just one week, achieving rapid expansion without the need for multiple vendor setups.

Cross-Border Expansion Complicates Fraud Prevention

Operating across different jurisdictions complicates fraud prevention. Each market has its unique payment behaviors and risk patterns, making it more difficult to distinguish between genuine shoppers and fraudsters. Nearly nine out of ten (88%) merchants have experienced payment fraud in the past 12 months, with the average loss for affected merchants reaching HK$1 million. Refund fraud is the most common type, affecting half of all retailers, followed by phishing fraud, identity fraud, and chargeback abuse, each impacting about 40% of merchants.

A unified platform and dynamic fraud rules can help merchants manage these risks. For instance, game studio GRYPHLINE utilizes Adyen's AI-driven fraud prevention and payment optimization tools to differentiate between loyal players and complex bot networks, while reducing involuntary churn and failed transactions. This combination ensures high authorization rates during high-traffic windows such as game release days.

Navigating Complex Licensing and Compliance

Dealing with foreign regulatory frameworks and data protection laws is a daunting task. 38% of merchants view data privacy and security issues as a major barrier to AI adoption. Retailers must balance local privacy compliance with data-driven personalization across multiple jurisdictions.

A single platform can help streamline this process. For example, Hong Kong's Cathay Pacific Airways has expanded its decade-long partnership with Adyen to cover direct acquiring services in Hong Kong, Australia, New Zealand, the United States, Japan, and India. By collaborating with Adyen, the airline can address the unique regulatory requirements of each market, thereby optimizing payment performance. In India, Cathay Pacific has seen a 10% increase in authorization rates since implementing Adyen's acquiring solution.

Kai Tang, Head of Adyen Hong Kong, stated, “International expansion presents significant opportunities for Hong Kong retailers, but success relies on the correctness of the infrastructure. Partnering with the right payment provider that can adapt to local market nuances will enable merchants to expand efficiently and securely.”