The pair - working with PCCW mobile, Gemalto and Samsung Electronics - are building an NFC-based system that lets customers make in-store purchases with their credit card accounts through a tap of their handsets.

An open architecture with a common standard will be used to build the platform, allowing other service providers and parties to come on board.

Rose Lee, chief executive, Hang Seng Bank, says: "Our mobile contactless NFC payment service will expand the range of payment channels in Hong Kong and place us among the leading cities as regards the use of advanced payment systems."

In September, the Hong Kong Monetary Authority promised to explore the creation of an interoperable NFC mobile payment infrastructure for the whole island.