The Octopus in Hong Kong: The Success of a Smart Card-based E-payment System and Beyond

Abstract

The success of the Octopus as a smart card-based E-payment system in Hong Kong is unparalleled by its counterparts worldwide. The number of daily transactions is over 8.1 million, generating over US$7 million in revenue on average. Although the majority of these transactions are transport-related, the Octopus is seeking to extend its arms into retailing payments. This research investigates whether retailers and consumers in Hong Kong would accept the Octopus better than its rivals such as cash, credit cards, or Electronic Payment System (EPS) to become a preferred payment method for retailing in Hong Kong.