Octopus’ Hong Kong market dominance faces challenge from e-payment newcomers
Company’s poorly received app may not bode well in changing market
The Octopus card, the wallet staple of almost all Hongkongers and one of the world’s first and most widely used cashless payment systems, is racing to catch up with the changing e-wallet market.
Since its introduction in 1997, the contactless Octopus has been used to combat fare fraud on the MTR and quickly spread its tentacles to other areas: supermarkets, convenience stores, restaurants, postal services, building and school campus access, and even tracking down criminal suspects.
There are now 32 million of the cards in circulation – nearly four and a half times the population of Hong Kong.
But the technology is seeing its dominance challenged, as people increasingly rely on contactless credit cards and e-wallets.
“We are well aware that customers do have a lot of choices, which is why Octopus needs to continuously create new products and enhance service,” said Sunny Cheung Yiu-tong, CEO of Octopus Cards Limited (OCL).