The service will let businesses incorporate the instant electronic Direct Debit Authorisation (eDDA) into their own systems, along with real-time funds transfer services.
That will allow businesses to eliminate the cumbersome old ways, which required them to sign onto their bank accounts to set up a direct debit instruction and then wait several days before it was ready.
By contrast, HSBC Hong Kong's new API will be able to cover the whole process, from the setup through the verification and then initiation of the direct debit.
The new process also does away with manual paperwork and uses more efficient cash flow management to create a "seamless" process, according to the press release.
Yvonne Yiu, head of global liquidity and cash management with HSBC, said the simplicity makes a difference for the customer.
“Designed to allow our corporate customers to stay ahead of the evolving demands of their clientele, this innovative cash management API also supports businesses in their digital transformation and daily operation optimization," she said in a statement.
FinTech unicorn Futu Securities has adopted the API, according to the release, which will allow investors to sign up and top up their securities trading through Futu, enabling them to arrange quicker deposits directly on Futu’s platform and capture investment opportunities. The API will assist Futu with processing incoming funds in a more streamlined way.
As reported by PYMNTS, HSBC has also been working with Alibaba's logistics arm, Cainiao Network Technology, on a new program to set up instant eCommerce loans. For merchants that use Chinese shopping site Tmall, the program allows them to access loans up to $500,000, promising seven-day approvals and 1 percent interest rates through June 30.