Shopping without cash: The emergence of the e-purse

Abstract

This article reviews six e-purse smart card programs in Hong Kong (one) and the United States (five). Hong Kong has one of the most highly successful e-purse programs, the Octopus card, and the United States has implemented a number of e-purse programs, some of which have been more widely adopted than others. What is found is that the most successful among these programs tend to have the following characteristics: a captive audience that drives critical mass, such as those found in the transportation industry or government sector; an affordable cost structure relative to other payment instruments; compelling incentives to consumers and merchants; and a technology that is well tested and addresses standards issues before the rollout.