Letters | Use QR code mobile payments on Hong Kong MTR to cut costs and benefit more commuters

Developing the MTR’s QR code mobile payment system can help reduce the maintenance costs of multiple subsidy schemes and better direct their benefits to students, the elderly and low-income commuters in a timely manner

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Commuters wait for their train at Tai Wai station in Sha Tin on October 16. Photo: Xiaomei Chen

Published: 6:40am, 31 Oct 2020Updated: 6:40am, 31 Oct 2020

In 2018, Alipay won the bid to provide QR code payment solutions to 91 MTR stations across the city as an alternative to Octopus cards by mid-2020. While the Covid-19 pandemic has delayed the roll-out of the scheme, we believe Alipay should work more closely with the Hong Kong government and the MTR to optimise the three subsidy programmes – Student Travel Scheme, Fare Concession Scheme and Fare Subsidy Scheme.

Under the Student Travel Scheme of the MTR, full-time students aged between 12 and 25 can enjoy fare concessions by using personalised Octopus cards. In 2018, about 447,000 passenger trips were subsidised every day with a total annual subsidy of HK$700 million (US$90.3 million). While the MTR accepts online applications for the schemes from secondary school students, all university students except those from three self-financed colleges have to submit paper applications every year.

First-year students often have to wait for two months to get their student Octopus cards. With a smartphone-based QR code system, the MTR should allow all eligible university students to enjoy the subsidies through the Alipay apps that could automatically verify their enrolment status with university databases.

The Government Public Transport Fare Concession Scheme enables senior citizens and those with disabilities to pay up to HK$2 for their public transport trips. With more than 1.3 million subsidised trips every day, the total cost of the scheme in 2018-19 reached HK$1.21 billion, a 10 per cent increase from the previous year.

Facing an ageing population and declining fiscal reserves, the Hong Kong government should explore how a smartphone-based system might help optimise the current subsidy scheme. For example, during rush hours, subsidies could be restricted to the elderly going to work. An upper limit of total subsidies per individual might be introduced to avoid the wastage of public resources.

In 2019, the Public Transport Fare Subsidy Scheme benefited about 2.2 million commuters with a total subsidy of HK$1.9 billion. The scheme was implemented by installing Octopus card readers in MTR stations that cost HK$21 million, and upgrading the equipment of public transport operators and convenience stores that cost HK$12.5 million. Another HK$69 million was recurrent expenditure in 2019 to maintain the system.