Increasing use of cellular telephones and mobile-banking services will spur the use of smart cards in Hong Kong and the mainland, according to an industry executive.
Jean-Claude Deturche, smart card marketing director for Schlumberger Test and Transactions Asia, said the mainland and the SAR would lead the region in the use of smart cards.
'China, because it's big, and Hong Kong, because it's so dynamic, will lead Asia in the use of smart cards in the short term,' he said.
Plans for multi-function smart cards in the SAR, such as the Octopus transport card which can be used for parking and small store purchases, would boost smart card use in Hong Kong, he said.
The Asia-Pacific accounts for 15 per cent of the US$1.5 billion worldwide revenue from smart cards, according to GartnerGroup/Dataquest market research.
Mr Deturche declined to disclose how much Schlumberger generated from Hong Kong or the Asia-Pacific, but the company expects the region to account for 24 per cent of worldwide smart card revenue by 2003.
Developing Asian countries such as Indonesia, which had shown potential before the economic crisis of 1997, were expected to see more smart card use in coming years, according to Mr Deturche.