Letters | Hong Kong must break Octopus monopoly to help its e-payment sector grow

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The Octopus stored value card is ubiquitous in Hong Kong. Why not open up the extensive network of Octopus card readers to other mobile payment companies? Photo: Sutterstock

Published: 11:30am, 27 Nov 2023

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We refer to the letter, “Yes to e-payment for taxi rides, no to service fee” (November 14).

We agree with your correspondents that Octopus cards should be leveraged to promote mobile payment among taxis. But we are concerned that the monopoly of Octopus cards could harm competition in the city’s mobile payment market.

Although MTR Corp allows passengers to pay fares using Alipay, WeChat Pay and other apps via a QR code, the Octopus smart card, which is operated by a company that is majority-owned by MTR Corp, still dominates the market.

Many of the discounts and rebates given to commuters using the MTR and public light and franchised buses are exclusively available to Octopus card holders. Not only that, Hong Kong residents eligible for the public transport fare subsidy also have no choice but to use Octopus cards.

To encourage competition in mobile payment, the government should explore the possibility of opening up the extensive network of Octopus card readers to other mobile payment companies. Although the card readers are made for Octopus cards, the underlying near-field communication (NFC) protocols can be used by other mobile payment vendors.