From taxi drivers to its leaders, Hong Kong must join the digital revolution, but also beware of the risks

David S. Lee says it’s time for Hong Kong, a laggard in welcoming technological advances like mobile payments and driverless cars, to play catch-up, while considering the impact of such change

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Currently, only a fraction of Hong Kong’s approximately 18,000 taxis are equipped for cashless payment. Photo: AFP

Published: 6:27pm, 27 Feb 2018Updated: 7:24pm, 27 Feb 2018

A record number of digital red packets were exchanged in mainland China during this year’s Lunar New Year. In Hong Kong, however, cash remained king as the exchange of lai see packets remained ubiquitous.

This seemingly small difference in payment preferences is a microcosm of the growing technological gap between the two markets, but it also portends impending changes that raise critical questions.

Hong Kong’s cash-is-king mentality extends to other domains as well, with cash payment of taxi fares a recent talking point. From Seoul to Singapore, taxi fares can usually be settled by cash, credit card, or some sort of digital payment method. Even across the border in Shenzhen, with just a smartphone, it is possible to ride a taxi and complete daily activities without ever touching cash.

Conversely, only a fraction of Hong Kong’s approximately 18,000 taxis are equipped for cashless payment, usually through Alipay or WeChat Pay.

Alipay and WeChat Pay now available in some Hong Kong taxis

Hong Kong’s Octopus card operator is trying to compete in the market but has garnered minimal interest for its QR payment service among taxi drivers. Hong Kong’s taxi drivers remain committed to cash.

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