Internet giant Tencent Holdings Ltd and Hong Kong property developer Sun Hung Kai Properties Ltd (SHKP) have formed a strategic partnership on Thursday aimed at enhancing smart living in the metropolis.

The two will invest over HK$13 million ($1.66 million) in special offer to promote the use of WeChat Pay HK, Tencent's mobile payment platform in Hong Kong, through a multi-phase campaign starting from this month, with SHKP's 23 major malls, business subsidiaries SmarTone and Yata department stores and supermarkets taking part.

The move marks a new step in pushing forward mobile payment in Hong Kong, which has long been dominated by Octopus.

"We are excited about the strategic cooperation with SHKP, through which we aim to make smart living a reality for people in Hong Kong," Jim Lai, vice-president of Tencent and head of Tencent Financial Technology, said.

"By combining SHKP's expertise in retail and Tencent's leading technologies, we aim to enhance consumer experience and empower customers through greater flexibility and convenience as they go about their daily lives. We look forward to deepening our strategic cooperation with SHKP in the future."

"Through this agreement with Tencent, we are building the mall of the future – a new generation, high-tech mall that puts customer experience at the heart of its offering," Christopher Kwok, executive director of SHKP, said.

"Through harnessing intelligent technology, we will continue to enhance customer experience."

As the first wave of the multi-phase cooperation campaign, the two industry players will be offering giveaways to shoppers between October 20 to November 30, encouraging them to pay with their digital wallets, instead of cash or credit cards.

Tencent's WeChat Pay HK has been making efforts to strengthen its presence in Hong Kong since the company was granted stored-value facilities (SVF) license from Hong Kong Monetary Authority in 2016.

Last month, the company partnered with the country's largest payment provider China UnionPay and its subsidiary UnionPay International to offer cross-border mobile payment services for Hong Kong people, allowing them to use WeChat Pay HK on the mainland.